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The tutorial explains how watermarks are used to prevent counterfeiting on banknotes. Watermarks are created by soaking a sheet of paper in water, smoothing it out to remove wrinkles, and then drying it. This method uses wood fibers in the paper to absorb water, creating a translucent image when held up to the light. The process is called a watermark because water is used in making it. This technique cannot be replicated on a banknote but can be done on a sheet of white paper.
