I wonder if one of you have some information about the safety of Java in browsers. It is the built-in version of Java which chrome offers to install in browser. Is there any difference between installing Java on your Operating system and installing it on browser (for security issues)?

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It is not completely safe to use a browser — any browser. It is not completely safe to have network connectivity, either. – Daniel Beck Apr 17 '11 at 8:25
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They're both the Java JRE AFAIK. No big difference there. When an applet is run in a browser, it has limited security permissions which you can edit manually.

I don't think there is any difference in the packages through the browser or through Java.com. I'm pretty sure they're the same thing. Either way, security settings will be the same.

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