Unlike the other versions, Web pages go through Skyfire proxy server , this time Skyfire is building its browser on top of open source WebKit (iPhone compatibility intention). Only pages that need transcode (e.g. Flash video) still go through Skyfire server
Users will be presented withy a Skybar to select the video to play on the Web page, Skyfire then converts on-the-fly to H.264 to playback on full screen. The Skybar is also used to present related video to the current page and Social networking sites sharing.
video link
[Via MobileCrunch