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In this video tutorial, the speaker demonstrates how to read data from a smart contract storage using ethers in the Alchemy Composer tool. A savings account contract is created and deployed to the Rinkeby testnet, storing two variables in bytes32 format. It is highlighted that all data stored inside a smart contract can be accessed from the outside world. The state variables are permanently saved in the contract storage. The tool converts a string to bytes32 format and helps in deploying the contract. The values of both variables can be viewed, and there are two ways to read them, one being through the Alchemy Composer tool.