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Copy file name to clipboardExpand all lines: content/vault/v1.20.x/content/docs/about-vault/how-vault-works.mdx
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# How Vault works
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Vault is an identity-based secrets and encryption management system
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that centralizes secret management, rotates old credentials, generates
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credentials on demand, audits client interactions, and supports regulatory
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## Core Vault workflow
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Vault works primarily with tokens and a token is associated to the client's policy. Each policy is path-based and policy rules constrains the actions and accessibility to the paths for each client. With Vault, you can create tokens manually and assign them to your clients, or the clients can log in and obtain a token. The illustration below displays Vault's core workflow.
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Vault works primarily with tokens associated to a client policy. The path-based
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policy defines rules that constrain the actions and accessibility of the
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associated paths for each client.
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Clients can authenticate against Vault to log in and obtain a token automatically
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or you can create tokens manually and explicitly assign them to your clients.
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