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Definition
OpenID Connect is an identity layer built on top of OAuth 2.0 that allows an application to verify a user’s identity and receive basic profile information after authentication. It uses ID tokens to confirm who the user is, while OAuth 2.0 handles permission and access between systems.

Why it matters
OpenID Connect helps applications support secure single sign-on, reduce password handling, and connect with trusted identity providers. It gives developers a standard way to confirm user identity across websites, apps, and services without building a custom login system from scratch.

Example use case
A user signs in to a business app using their existing Google or Microsoft account. The identity provider authenticates the user and sends the app an ID token through OpenID Connect, allowing the app to confirm the user’s identity and grant access.