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In this video tutorial, the importance of using nicknames in setting up and controlling breakout rooms for students is highlighted. By using a nickname, teachers can ensure that only students with the code can join the room and that the teacher must be present. The tutorial includes step-by-step instructions on how to create a meeting using a nickname, join it as a student, and end the call. Waiting for about 30 seconds after ending the call is necessary to prevent immediate re-entry into the meeting. Multiple nickname meetings can be created, providing a secure and controlled environment for student collaboration.