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Instant Webcam encodes video in MPEG1 format and sends the frames over WebSockets to connected Browsers. The Browser then decodes the MPEG Stream in JavaScript and paints into a Canvas. It's a huge hack, but one that turned out to work really well. Using HTML5 Video in a cross-browser manner has been notoriusly difficult. Instant Webcam solves this problem by using jsmpeg – an MPEG1 decoder written in JavaScript that works in all modern browsers, instead of relying on built-in decoders.
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