An OAuth (Open Authorization) token is methods used for authenticating and authorizing access without the need to share personal credentials, such as usernames and passwords. In the case of SaaS where user often have access to multiple applications, it is particularly important to authorize these applications to access their data in a secure and controlled manner.
When a user wants to allow an application to access specific resources, such as files, data, or services, they go through an authorization process. This process typically involves the user logging in and explicitly granting permission, and upon successful authorization, the SaaS application issues an access token to the application. This token is then used by the application to make API requests to the SaaS platform, accessing only the resources and performing only the actions the user has permitted.
OAuth tokens are essential for maintaining the security and privacy of user data in SaaS environments and are designed to be short-lived and often come with specific scopes that define the limits of what the application can do. This ensures that even if a token is compromised, the potential damage is limited.