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yeah, you have to enter a number/letter string from an image file into a text field. Some bots can beat a captcha.
This can help make sure people don't abuse a service by bogging it down with a ton of automated requests... good example is in submitting galleries to cetain sites. Also, most of the tools at seochat.com require you to enter one
And no, it's not illegal at all.. trying to beat one may be a violation of terms of service in certain situations
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