How to Implement Token-Based Authentication in an API?

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How would you implement token-based authentication in an API? Specifically, I want to:

  1. Generate and validate tokens for user authentication.
  2. Handle token expiration and implement a mechanism for renewing tokens.
  3. Securely store tokens on the client side and transmit them in API requests.
  4. Implement refresh tokens to allow users to stay authenticated without re-entering credentials frequently.

Can you provide a detailed explanation and code examples demonstrating how to set this up?

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