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Article didn't mention it, but Justin's blog post did:

"Standards-based: XMPP, Jingle, RTP"...

We're working on publishing the spec, which should be available soon. In fact, it's already implemented in libjingle:

http://code.google.com/p/libjingle

Very excited to see this used here and know that it will be replaced by even more plugin-less awesome- WebRTC.

I wonder if that's just a Google-internal thing or if Google+ will embrace other social networks wanting to integrate.

Flash has had peer-to-peer video support for 3 years now and it's available to 90%+ users on the web. Chatroulette was built in 2 days around this technology. Whenever "standards" catch up to Flash, it's being touted as "amazing".
The article clearly states that whats interesting is the client-server infrastructure behind it and the fact that it isn't P2P.
HN Feature Request: a filter that strips the word "amazing" out of all headlines.
P2P can introduce latency

Can someone explain this to me? I guess if your video has to go via multiple hops, that would be laggy, but if you connect directly to each peer in the conversation surely that would be less laggy than a client-server architecture?

It's because of limited upload bandwidth when sending multiple copies of a stream.
Awesome? Umm it doesn't work on my Google supplied Cr-48.
Worked on my Samsung Series 5, but when trying to do a youtube watch with a friend and the tab crashed.
Hopefully will when the plugin is baked into an update.
Yeah I'm dumb and I had the "Click to play" flag turned on so it was blocking it.
I think "the hint" of the amazing technology behind Google+ Hangouts would be more appropriate.

Could one of the people involved please publish a more detailed blog posts as how all these pieces are linked together. The tweaker in me wants to start fiddling with it ASAP:

Fully browser-based/cloud-based

Client-server: leverages the power of Google's infrastructure

Designed for low latency (< 100 ms) and high performance (multicore + hardware acceleration)

Standards-based: XMPP, Jingle, RTP, ICE, STUN, SRTP

Fully encrypted (HTTPS + SRTP)