This lecture covers the N2 method for displacement-based evaluation of structures during earthquakes, including typical failure modes, design of new buildings with reinforced concrete walls, and estimation of peak forces and displacements. It explains the principal idea, application to elastic and inelastic systems, transformation of MDOF to SDOF systems, advantages and disadvantages of the N2 Method, and pushover analysis. The lecture also discusses the representation of seismic demand and capacity, safety factors on deformation capacity, response of elastic and inelastic SDOF systems, and inelastic response spectra. Practical examples and empirical relationships are provided to illustrate the concepts.