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In this video tutorial, we are learning about encrypting user data with EFS (Encrypting File System). EFS secures data on NTFS volumes by creating a unique key using machine and user credentials. It uses a fast symmetric encryption algorithm, storing the key inside the encrypted file. To protect the key, EFS uses a user certificate for encryption. Without the certificate, users cannot access the encrypted data. The practical demo involves a domain controller and two client computers in a VirtualBox lab setup.