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The video tutorial discusses Mermaid, a charting tool for creating flowcharts, sequence diagrams, and Gantt charts. It is web-based, text-based, and free to use, making it a more accessible alternative to paid tools like Visio. By defining relationships between items in text, Mermaid automatically generates graphs. This tool is beneficial for system design and easier to work with compared to traditional charting software. The main website for Mermaid is on GitHub.