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In this video tutorial, the presenter introduces the steps to encrypt user data using the Encrypting File System (EFS). EFS secures data stored on NTFS volumes by creating a unique key that combines the machine's and user's credentials. It employs a symmetric encryption algorithm, meaning the same key is used for both encryption and decryption. The encryption key is stored within the same encrypted file but is protected by a user certificate, which must be available to access the encrypted data. The tutorial then transitions to a practical demonstration using a test lab in VirtualBox, consisting of a domain controller and two client computers.