Hello Santhosh,
Welcome!
OTR versus cleartext chatting is actually a discussion I wanted to get started.
The choice is really between robust functionality and strong security.
A cleartext chat injectable application sets the security requirements
fairly low since it could be an IRC web client that is viewed in the
context of the host page. It promises much less in terms of security
and privacy, but it is highly functional.
The OTR injectable application will offer a lot more in terms of
security and privacy since the conversation is end-to-end encrypted.
However, for OTR+Privly to fulfill its potential it has to maintain
the security properties of OTR. For example, you should completely
understand CryptoCat's threat model [1] and know how building
CryptoCat on Privly may affect the score.
Particularly challenging in the case of Privly is that the chat
session will be tied to the URL found in the context of the host page.
If the URL contains the session identifier, then the host page may
mount an "Unwanted User Attack." One way to circumvent the attack
would be to push an encrypted identifier to a remote server, but this
idea must be thoroughly examined.
-Sean
[1]
https://github.com/cryptocat/cryptocat/wiki/Threat-Model
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Sean McGregor
Oregon State University, Department of Computer Science
Twitter: seanmcgregor
irc.freenode.net: smcgregor