Mozilla is steadfast on its march to replace every application we use today with something that can be run from within your Web browser. After conquering the MMO space, they are gunning at Skype and other video calling services.

Mozilla has created a video conferencing system that uses Web Real-Time Conferencing alongside its BrowserID (Persona) program to create a call between two parties. The demo right now is pretty rough as it was literally being worked on up until its showing at IETF 83 in Paris.

The technology behind the technology is pretty cool as well. It uses a custom WebRTC API that Mozilla is currently building for Firefox. It uses HTML5 canvas to render both the remote and local videos on the Web page. Canvas is the sam HTML5 tech that powers visuals in games, but it can also be used to power in-browser video.

The demo shown in Paris is just that – a demo. In the comments section, Mozilla clarifies that they’re hoping to get WebRTC support in Nightly, the experimental version of Firefox, before the end of the quarter. You can check out their goals, including WebRTC implementation, on their quarter two goals page.

With the current trend of moving traditionally application based functions like video calling to HTML5, do you see services like Skype declining in popularity? Let us know in the comments.