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In this video tutorial, the focus is on enabling smart contract support in the Nami wallet by enabling collateral. Collateral is set at five ADA to protect users in case a smart contract fails, ensuring that only the set amount of collateral will be taken to cover resources used. This prevents malicious dapps and protocols from taking more than the set amount. To enable collateral, users need to have a balance of at least five ADA in their Nami wallet and click on their Nami extension.