So i wanna try explain the concept of JWT to a 5(+55) year old, and also to myself who is noob at web stuff. please tell me if this is a correct analogy, because i am myself confuse regarding how its secure?

So A wants B, a blind jeweller, to keep his super valuable notebook page with bank passwords safe. B says "give me your sheet and 5 nickels". (Assume that every nickel is always 1gm, made up of pure iron . Assume these statements to be true and world-known )

B takes A's nickels, melts them, adds 20gm more iron, adds 25gm copper, adds 25gm aluminum and then adds 25gm carbon dioxide and makes a mixture that is impossible to revert , but will automatically disintegrate after 24 hours due to CO2 (again, pure true statement, but this formula is only known to B) .

He makes 2 exact copies of keys from the 100 gm mixture, gives one to A and says
("Anyone can either give me 5 nickels of same name, markings, and year and i will give them back this secret sheet. or they give me the same key fo next 24 hours,and i will still give them back the sheets. after 24 hours, this key will also not work. I will even keep this on public display that i make keys using the materials I just showed, and then also no one would be able to create he exact same replica because they don't know how much percentage of each material went into the mixture"

So is this true? I have heard my friend boldly claim that they don't store user passwords as plaintext or even encoded text but rather doing this :
user password + company's private key --->[public domain encryption algorithm] = irreversible public key which is saved against user profile as "password"

public key + other info + time bound expiring logic ---->[public domain JWT encrypted token maker algorithm] = reversible JWTToken which is sent back to user

if user sends back token, then
token --> [JWT decoder] = public key + other info

if public key matches the stored public key , then user is a real user and should be given data

if user sends back the original password, then
user password + company's private key --->[public domain encryption algorithm] = irreversible public key .
again if public key matches the stored public key, then user will again receive access?

So this means all the time we are transmitting a lightly jumbled up version of public key, which is itself a hard, almost irreversible jumbled up version of our passwords that can only be unjumbled via a private key (or jewellers mixture ratios) that companies hold dearly ?