What is DPAPI and how is it used in Chrome's password storage?

DPAPI (Data Protection Application Programming Interface) is a Windows data protection interface used to securely encrypt sensitive data like Chrome passwords. Chrome encrypts saved passwords into a DPAPI blob stored in the 'Login Data' SQLite file. Decryption requires the user's Master Key, which is protected by the user's login password. For more details on the overall process, see Penetration Techniques - Offline Export of Passwords Saved in Chrome Browser.