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video explains checksum verification, the importance of verifying downloaded files, and the potential risks of not doing so. It mentions how third parties can modify files to contain malicious code and how this can compromise the security of sensitive information. The video also covers how checksum verification works by generating a unique checksum that only matches the original, unmodified file. It emphasizes the significance of verifying files, especially for software like the Daedalus wallet, to ensure the safety of personal data and prevent potential security breaches.