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In this video, Hussein addresses misconceptions surrounding authentication systems and password encryption. He notes that many newcomers or self-proclaimed experts mistakenly believe that encrypting passwords on the client side before sending them as a POST request enhances security. He clarifies that the communication between the client and server is already secured using TLS (Transport Layer Security), specifically TLS 1.3. Hussein emphasizes that even major companies like Google do not encrypt passwords in this manner, relying instead on the strength of TLS for secure transmission.