3. After the password hash synchronization agent has the encrypted envelope, it uses [MD5CryptoServiceProvider](/dotnet/api/system.security.cryptography.md5cryptoserviceprovider) and the salt to generate a key to decrypt the received data back to its original MD4 format. The password hash synchronization agent never has access to the clear text password. The password hash synchronization agent’s use of MD5 is strictly for replication protocol compatibility with the DC, and it is only used on-premises between the DC and the password hash synchronization agent.
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