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JSON Web Token (JWT) is an open standard (RFC 7519) that defines a compact and self-contained way for securely transmitting information between parties as a JSON object. This information can be verified and trusted because it is digitally signed. JWTs can be signed using a secret (with HMAC algorithm) or a public/private key pair using RSA.
Let’s explain some concepts of this definition further.
JWT mechanism is to verify the owner of some JSON data. It’s an encoded, URL-safe string. When a server receives a JWT, it can guarantee the data it contains can be trusted because it’s signed by the source. No middleman can modify a JWT once it’s sent.
It’s important to note that a JWT guarantees data ownership but not encryption. The JSON data you store into a JWT can be seen by anyone that intercepts the token because it’s just serialized, not encrypted.
For this reason, it’s highly recommended to use HTTPS with JWTs (and HTTPS in general, by the way).
JWT is a particularly useful technology for API authentication and server-to-server authorization.
A JWT needs to be stored in a safe place inside the user’s browser. If you store it inside localStorage, it’s accessible by any script inside your page. This is as bad as it sounds; an XSS attack could give an external attacker access to the token.
To reiterate, whatever you do, don’t store a JWT in local storage (or session storage). If any of the third-party scripts you include in your page is compromised, it can access all your users’ tokens.
To keep them secure, you should always store JWTs inside an httpOnly cookie. This is a special kind of cookie that’s only sent in HTTP requests to the server. It’s never accessible (both for reading or writing) from JavaScript running in the browser.