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In this tutorial, the focus is on encrypted credentials in Rails, introduced around version 5.2. This feature addresses the challenge of securely sharing sensitive information, such as API keys, among team members in a hosted network without exposing them. Encrypted credentials allow developers to embed important credentials directly in an app, facilitating ease of use during installation and startup without extensive onboarding processes. Prior to this, environment variables were commonly used for similar purposes, often managed with a gem like Dotenv, which allows for a simple dot file to store environment variables. Encrypted credentials provide a more streamlined and secure approach to handle sensitive data in Rails applications.