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Ask others and it is some anti-piracy software that slightly decreases performance.
Let the conspiracy theories commence!
In many games Denuvo only creates problems.
Added Denuvo
Changed recommended CPU from 12600k to 13700kf
It's a form of Digital Rights Management or DRM. Something that is implemented into games to ensure that only people who legitimately purchase a game can play it. Steam itself is a form of DRM but it doesn't alter the software in anyway where as Denuvo is embedded into the games code itself.
It's a favourite form of DRM used by large publishers as it's virtually uncrackable. There's only 1 person on the scene who semi regularly cracks games with it (usually if they're paid 500 USD and they're frankly a deranged lunitic), 1 group who only cracks Football manager which uses an older version and one recently retired group who were also able to crack an older version and released some details on the methods to do so.
To put it into perspective there's been 40 games released on PC this year with Denuvo. Only 9 of them have been cracked and can be pirated, Only 3 have actually been cracked where as the other 6 use a bypass from a non Denuvo version. So less than 10% crack rate on the PC versions. Worth noting some of the 40 have been cracked on console (non denuvo) which can then be emulated on PC
To hand wave a lot of the technical stuff away it basically gets added to some processes within a game and when they're ran it calls in to a home server with details on your computer to verify you have a legit purchase. Past implementations were hooked up to regularly used processes so had a very detrimental impact on game performance. Recent versions are hooked up to lesser used processes that are still used often in games so as to impact performance much much less. Gotham Knights which released earlier this year accidentally released a version of the game without Denuvo and there was 1-2 FPS lost.
The bigger issue with it that people fail to mention is that it requires internet access and for the home server to be up. It's happened in the past that the server went offline and people lost access to a number of their games for the time it was done.