I want to understand what token-based authentication means. I searched the internet but couldn\'t find anything understandable.
A token is a piece of data which only Server X could possibly have created, and which contains enough data to identify a particular user.
You might present your login information and ask Server X for a token; and then you might present your token and ask Server X to perform some user-specific action.
Tokens are created using various combinations of various techniques from the field of cryptography as well as with input from the wider field of security research. If you decide to go and create your own token system, you had best be really smart.