A token is a piece of data created by server, and contains information to identify a particular user and token validity. The token will contain the user's information, as well as a special token code that user can pass to the server with every method that supports authentication, instead of passing a username and password directly.
Token-based authentication is a security technique that authenticates the users who attempt to log in to a server, a network, or some other secure system, using a security token provided by the server.
An authentication is successful if a user can prove to a server that he or she is a valid user by passing a security token. The service validates the security token and processes the user request.
After the token is validated by the service, it is used to establish security context for the client, so the service can make authorization decisions or audit activity for successive user requests.