Yes it can, Go to your camera settings and select USB Mode. And then select Camera. Plug it into your computer and youre ready to go. You will however require the drivers for the camera.
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A digital camera is a portable camera that runs on batteries and usually has a slot for a memory card to save pictures and videos to. They generally have better image quality, presently ranging from around 8-12 megapixels on average. This is what you usually see people carrying around for taking pictures. A webcam is a small camera that connects to a computer [or is built into a laptop] and is generally used for video chats online. They have lower quality than a digital camera.
A web camera or "webcam" by definition produces digital video. An analog video camera would require some kind of analog to digital conversion in order to be used for the types of applications that webcams are used for.
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To take photos, record video and video-call your friends. Also, some web cameras come with a programme which can see when something is moving, it records it (for safety, when you're not home).
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