What does a webcam do?

What is a Webcam? A webcam (also called web camera) can take videos and images, and then send them in real-time to another PC either through the internet or through a local network. Most webcams connect to the computer via the PS/2 or USB port. Wireless webcams connect via Bluetooth or Wi-Fi. Most webcams are capable of taking still images when offline.

Just to add to above, some webcams are built into the actual laptop or computer. It is sort of said above, but you can chat with webcams with another person who also has a webcam. I have even seen some people use them as security purposes.