The document explains the 5 steps to understand JSON Web Tokens (JWT):
1) JWT are composed of a header, payload, and signature in a string format.
2) The payload contains user data claims like user ID.
3) The signature is created by hashing the encoded header and payload with a secret key.
4) The three parts are combined as a token in header.payload.signature format.
5) The application verifies the JWT signature to authenticate the user sending the request.