JSON Web Tokens (JWTs) are compact, self-contained tokens used to securely transmit information between parties as JSON objects. JWTs contain a header, payload, and signature. The header typically specifies the token type and signing algorithm being used. The payload contains claims about the user such as username, ID, and expiration time. The signature ensures the token integrity. JWTs are signed using a secret or public/private key pair to authenticate and securely exchange information.