The document explains JSON Web Tokens (JWT) as a method for secure claims representation between parties, highlighting their structure, including the header, payload, and signature. It discusses the limitations of session-based authentication, emphasizing issues with load balancing and states, and outlines JWT's advantages and security concerns. Additionally, it details scenarios for using JWTs, such as authorization and information exchange, while also noting the importance of expiration to mitigate risks if a token is stolen.