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This lecture covers the concept of perfect confidentiality in cryptography, where the keys must be as complex as the messages, and the entropy of keys should be at least equal to that of messages. It also delves into algorithmic security, where observable data should not contain enough information to crack the code. The lecture explains the use of one-way functions in cryptography, exemplified by DES, and the challenges of solving NP-complete problems. Additionally, it discusses the security of DES, the transition to AES, and the inherent risks associated with NP-complete problems.