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In this video, Hussein addresses misconceptions regarding password encryption in authentication systems, particularly among newcomers and self-proclaimed experts. He highlights a common mistake where individuals encrypt passwords on the client side before sending them in a post request, believing this is secure. Hussein emphasizes that communication between the client and server is already protected by TLS (Transport Layer Security), specifically TLS 1.3. He notes that even major companies like Google do not encrypt passwords on the client side, relying instead on this robust security protocol to protect data during transmission.