PaintPy

Online graphics editing tool lets create, edit images using HTML5 technologies. No need to buy, download, install or have obsolete flash. Key features: layers, drag & drop, transparency, filters, no-flash, open source.

PaintPy operates directly in the browser. You can create images, paste from clipboard (ctrl+v) or upload from computer (using menu or drag & drop). Nothing will be sent to any server. Everything stays in your browser.

Demo:

http://paint.hrv.cu.cc