Ref - JWT Structure and Security
It is important to note that JWT are used for authorization and not authentication.
So a JWT will be created for you only after you have been authenticated by the server by may be specifying the credentials. Once JWT has been created for all future interactions with server JWT can be used. So JWT tells that server that this user has been authenticated, let him access the particular resource if he has the role.
Information in the payload of the JWT is visible to everyone. There can be a "Man in the Middle" attack and the contents of the JWT can be changed. So we should not pass any sensitive information like passwords in the payload. We can encrypt the payload data if we want to make it more secure. If Payload is tampered with server will recognize it.
So suppose a user has been authenticated and provided with a JWT. Generated JWT has a claim specifying role of Admin. Also the Signature is generated with
This JWT is now tampered with and suppose the
role is changed to Super Admin
Then when the server receives this token it will again generate the signature using the secret key(which only the server has) and the payload. It will not match the signature
in the JWT. So the server will know that the JWT has been tampered with.