According to Liveside, Microsoft is working on a web-based text file editor for SkyDrive.com on “Monaco” – a web-based Visual Studio code editor.
Here is the description about upcoming editor from Liveside,
LiveSide has learnt that the online text file editor on SkyDrive.com is based on “Monaco” – a web-based Visual Studio code editor. The “Monaco” editor was first used by Microsoft on the TypeScript Playground – which allowed developers to test their code within the web browser. The editor featured line count, contextual syntax highlighting, as well as find and replace functionality with regular expression, and we understand some of these may make its way to SkyDrive.com’s text editor.
We also understand that SkyDrive.com’s text editor will enable versioning, including the ability to compare changes between versions of text files, as well as the ability to revert to an older version.
It is also rumored that Monaco is the basis of new F12 tool editor in IE11.