A webcam is a video camera that feeds or streams its image in real time to or through a computer or computer network. When "captured" by the computer, the video stream may be saved, viewed or sent on to other networks via systems such as the internet, and email as an attachment. When sent to a remote location, the video stream may be save, viewed or on sent there. Unlike an IP camera (which uses a direct connection using ethernet or Wi-Fi), a webcam is generally connected by a USB cable, FireWire cable, or similar cable, or built into computer hardware, such as laptops.
Their most popular use is the establishment of video links, permitting computers to act as videophones or videoconference stations. Other popular uses include security surveillance, computer vision, video broadcasting, and for recording social videos.
Source: http://en.wikipedia.org/wiki/Webcam
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