Start here. This is the direct spoken answer to practice first.
Why this question matters
A valid identity is an input to access control, not permission to every resource. APIs need both a trusted principal and a server-side decision about the requested action, tenant, and resource state.
Authentication answers who the caller is by validating credentials and producing a principal. In an ASP.NET Core API, a JWT bearer handler validates the token signature, issuer, audience, lifetime, and related scheme rules before claims are trusted. Authorization answers whether that principal may perform this operation. An anonymous caller that needs credentials is challenged, commonly with 401; an authenticated caller that lacks permission is forbidden, commonly with 403.