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The Drupal API Authentication module works by sending a JWT token along with your API requests for authentication. This module uses JSON Web Token (JWT), an open standard for securely representing user identity during two-party interactions.
In this step, essentially, a username and password of your Drupal site are used to first get a JWT token. Once the username and password are verified, the Drupal REST API Authentication module will create a signed JSON Web Token. Then, the API will return that token back to the client application.
OAuth (Open Authorization) is an open standard for token-based authentication and authorization protocol that can be used to provide single sign-on (SSO). OAuth allows particular information about an end user's account to be used by third-party services, such as Facebook, etc without exposing the user's password. It acts as an intermediary on behalf of the end user, providing the service with an access token that authorizes specific account information to be shared.
API Key Authentication is one of the simplest methods to protect Drupal REST APIs. Once you have generated API Keys for all your users, you can then use those keys to secure access to your Drupal REST APIs.
Basic Authentication is a very simple and straight-forward Authentication method. The client sends HTTP requests with an Authorization header that contains a base64-encoded username and password of your Drupal site.
What is Taxonomy?
Taxonomy is used to classify website content. One common example of taxonomy is the tags used to classify or categorize posts in a blog website; the farmers market website could use an ingredients taxonomy to classify recipes. Individual taxonomy entities are known as terms (the blog tags or recipe ingredients in these examples); and a set of terms is known as a vocabulary (the set of all blog post tags, or the set of all recipe ingredients in these examples).