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In today's video, the speaker explains the concept of Lightroom catalogs, emphasizing their significance in the software. A Lightroom catalog, represented by a file named something like "spencers catalog LR cat," is essentially a database that stores information about every photo imported into Lightroom. This includes not only ratings (e.g., one star or five star) but also crucial post-processing settings. The edits made to photos are saved in the catalog file rather than being applied directly to the images themselves. This method of storage allows for more flexibility and organization in managing photo edits within Lightroom.