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The tutorial explains how watermarks are used to prevent counterfeit banknotes, with an example of Captain Cook's image appearing when the note is held up to light. Watermarks get their name from the use of water in making them. To create your own watermark, soak a white paper in water, then spread and smooth it out to remove wrinkles. The paper's wood fibers absorb water, creating a subtle design like the watermark on banknotes.
