The first real instance of the ubiquitous, mobile web on a consumer-friendly handset is the Apple iPhone 3G. It’s a game-changer and a technology market-mover. We all know that. But as we also know, what drives technology development and adoption more than anything else is porn. Just as users will always find ways to get their porn, smart technology companies will find ways to provide and monetize it.

But how does one find free porn video content on the new iPhone? You can’t find it on Youtube, which comes native as a featured applicaiton, and some of the better-known adult streaming sites like Youporn, Redtube, Eskimotube all serve their content for free, but in Flash video, which isn’t supported on the iPhone.

Sure, you could transcode a video file from your desktop and side-load it to your phone, storing it locally on your phone’s 8GB or 16GB drive. But that’s cheating and doesn’t make use of the iPhone’s much touted functionality. You could do that with any device with local storage or a mini SD card slot including an iPod, Blackberry, etc. The whole point of the new iPhone is the utility to pull content from the cloud via anywhere, anytime web browsing. That’s real value.

So how do you stream porn on the iPhone and why is that functionality a potential goldmine for a video sharing site?

The iPhone is a tethered platform. It’s not open-source. Apple has restrictions and control over what the device will allow. Apple is the gateway from which developers need approval in order to distribute their applications on the App Store. But Apple, to its credit, won’t allow porn or adult content themed applications in its on-deck iPhone application store. It doesn’t support Flash (yet). The decision not to support Flash is more than just a technology roadblock. It’s a competitive corporate position against Adobe and their proprietary Flash player, which if supported by the iPhone, effectively diminishes the leverage of Quicktime, Apple’s own video player. But by not supporting Flash, iPhone users are deprived of free streaming of adult content on the previously mentioned sites.

Until now.

Last night I had drinks with a buddy who works for one of the major studios. He told me about a content licensing deal in the works with MyWaves.com, a video sharing site that I had never heard of. I asked him what was so special with MyWaves. He pulled out his iPhone, opened the browser and went to their site. He clicked through a few categories and landed on the Adult section. He pressed play on a clip and showed me a hardcore, porno video. It was all there.

To be clear, his deal wasn’t an adult content license, but the fact that MyWaves had money to spend puts them in a unique position in the uber competitive video-sharing category.

Apparently, MyWaves sniffs for iPhone users when calls are made to their site from mobile devices. They have a content database of videos transcoded into Quicktime. That includes porn from their Adult channel.

So they’re serving porn on the iPhone. God save the Queen.

As the mobile market explodes, keep an eye on companies that have an adult content play. They may not make it the center of their marketing campaign, but it’s a real traffic driver and a revenue source. As the runway continues to shorten for startups, those who can create real businesses from the expanding mobile web will be like submarines: long, hard and full of seamen.