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When a User successfully authenticates against an API, the claims from his token are extracted into an asp.net list of claims. Then a ClaimsIdentity object is created, which contains these claims. You can imagine the ClaimsIdentity object as a person's personal physical folder with sensitive documents.For example you can have a folder for documents used for passing a border (passport etc.) - this is one ClaimsIdentity.You can have a folder which contains driving documents (vehicle documents, driving licenses etc.). And a User of type ClaimsPrincipal can have one or more ClaimsIdentity-es. This ClaimsPrincipal object is used mainly in the context of Controllers, Authorization policies and different middlewares, for reading token information or checking for login status, for example.