NVENC is an Nvidia codec that encodes your gameplay using the GPU instead of the CPU, kinda like Nvidia's Shadow play streaming service. This codec is less taxing on your system, but the quality of your stream suffers. People with lower end PC's benefit from this, especially if you GPU is better than your CPU. The Optimum setting for encoding in OBS is x264, but it's CPU intensive. It's all a trade off...
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