This sounds like science fiction come to life.

A tiny computer, about the size of a BIC Lighter, that features a dual-core 1.2-GHz processor, 1GB RAM, a USB port, and HDMI port, a microSD port for attaching storage, and WiFi and Bluetooth connectivity.

It’s developer, a Norwegian company called FXI Technologies, has named the little computer ‘Cotton Candy’.

Cotton-Candy[3]FXI explains the name in a blog post they posted on their site yesterday, saying that cotton candy “… was the most similar existing object that describes somewhat what it is doing: a stick connecting a cloud to your hand!”

Cotton Candy runs on Android OS, and when plugged into a desktop computer’s usb port, Android will appear in a virtualized window on the screen. But being able to use Android on a PC is just the start. Cotton Candy is designed to run Android on any laptop, HDTV, phone, set-top box or tablet. One possible use would be to plug it into the HDMI port of an HDTV, turning the HDTV a monitor. Then a Bluetooth enabled keyboard, mouse or tablet can be used to input data and control the system. Users would be able to run apps, manage documents, and save files to a cloud. Basically it can make any TV with an HDMI port a smart TV. It seem to us that this would be very useful for presentations.

Other possible uses, according to FXI, would be: making PC’s dual OS bootable; displaying a smartphone display onto a larger screen, monitor or HDTV through WiFi; turning old monitors into a computer; or giving new life an old/outdated computer by plugging in Cotton Candy.

Cotton Candy is expected to debut on the market in 2012, for “considerably less than $200”, according to FXI.