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the only thing server-side dynamic code generation does is add the extra step of forcing the bad guys to create a malformed request via PHP, CGI, or whatever server-side language is being used, uploading it to the server, then exploiting the results to hijack the server itself before sending malicious payloads to end users.

I guess that's a part I don't understand. I can see how running some program on your own computer (whether it's Office or a game or Java) can create a threat to your computer. But how does running a program on a server cause a threat to you when browsing the web?

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