JWT stand for JSON web token. The JWT holds information (in JSON) that we can only reveal using a secret key. You can visit the JWT official website on the below page.
For example, we can encode email/password to JWT token that we can store in the local storage. As in the below image, we can visualize how we can encode/decode JWT.
In the above image, we encode the email and password into the JWT token.
The reason that we are using JWT token for authorization instead of email/password is as below: