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This lecture explores the concept of thermodynamic equilibrium in closed systems, focusing on the application of thermodynamic potentials through the example of electrolysis of water. The process involves using an electric potential to separate oxygen and hydrogen by immersing two inert metal electrodes in water and connecting them to a battery. The lecture delves into the reactions at the cathode and anode, the energy required for dissociation, and the calculation of Gibbs free energy. It concludes by discussing how the process of water dissociation requires energy but can also produce energy in applications like fuel cells and electric vehicles.