API Token, what does it mean? and how do i use it?

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It is difficult for a newbie to understand the foregone discussion. Let us say a Chirpstack LNS instant is freshly installed on a Gateway such as Raspberry Pi (Gateway Bridge, Network Server and Application Server onboard localhost):-:
Questions:-

  1. What is the difference between API key and JWT token and what are their basic uses in terms of LoRaWAN Servers?

  2. Is JWT Token necessary to deploy a device on the Application Server RESTApi? i.e is it necessary to follow this procedure api/internal/login ------ Try it out------JWT token and then place it in the JWT Token slot on right top corner? Followed by api/devices/devEUI/activate to activate the device and application. Is this procedure mandatory to deploy an application?

OR

  1. Is the procedure (JWT) in above only required for “Integration” such as HTTP or MQTT with an external server? Does it have nothing to do with Device cum Server to work without any JWT Keys? Will the application not at all work or will stop working if JWT procedure is not followed?

  2. On RESTApi - api/devices/devEUI/activate, it only allows activation for ABP. Do not see activation on OTAA, is there a reason why? Is it mandatory to apply this activation procedure for a device to conceive data payload on the server?

  3. Almost invariably see “context deadline exceeded (code: 2) error” on first use. What does this exactly mean? and what does it imply?

Request someone to explain these in a few simple words, the documents available on the websites are a bit high level and a non-server professionals like me may not understand it well.