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Unlike an IP camera (which connects using Ethernet or Wi-Fi), a webcam is generally connected by a USB cable, or similar cable, or built into computer hardware, such as laptops.

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One such function has the webcam act as a "magic mirror" to allow an online shopper to view a virtual item on themselves.

The Webcam Social Shopper is one example of software that utilizes the webcam in this manner.

The most popular use of webcams 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.

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 emailed as an attachment.

When sent to a remote location, the video stream may be saved, viewed or on sent there.

Webcam can be added to instant messaging, text chat services such as AOL Instant Messenger, and Vo IP services such as Skype, one-to-one live video communication over the Internet has now reached millions of mainstream PC users worldwide.

Improved video quality has helped webcams encroach on traditional video conferencing systems.

Video calling support has also been added to several popular instant messaging programs. Software is available to allow PC-connected cameras to watch for movement and sound, a computer e-mailed images of the burglar during the theft of the computer, enabling the owner to give police a clear picture of the burglar's face even after the computer had been stolen.

Unauthorized access of webcams can present significant privacy issues (see "Privacy" section below).

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