Video chat involves using a webcam to broadcast video of yourself to those you are chatting with. Video chatting is good for people who are talking to friends and family who live far away. If you have a microphone and a webcam connected to your computer, you will be able to speak to and see the person you are talking to without the need for typing. Video chat is also used to conduct business meetings where the participants are not in the same city.
There are chat rooms available where you can video chat with people that you don't know. Some of these are adult content sites but others can be found that are tamer.