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Nick introduces the topic of encoding and decoding data in base64 in C sharp. Base64 is a binary to text encoding method commonly used for translating binary data into text for systems that support text. One example is SMTP protocol for sending emails, where attachments are encoded as base64. By converting binary data into base64 encoding, it can be decoded back into binary data on the receiving end. Nick demonstrates a simple example of encoding a string of text into base64.