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How authentication in general (Mutual Authentication as a special case) works in MSDTC and how to configure Mutual Authentication on MSDTC??

I've a custom application (archival solution), a windows service which on a configured time fetch data from online database and dumps to a back-end archival database (Ideally online and back-end DBs are located on different machine).

I am using TransactionScope and have configured DTC on client and host machine with no authentication and it's working fine. However, our client requires us to not use no authentication mode and put some authentication for MSDTC. I've decided to use mutual authentication though I am not very much sure how it works and how to configure it?? Any help would be appreciated.