Why is it important for Christians to understand the difference between covenants?

The distinction between the covenant of works and the covenant of grace is vital for Christians as it frames our understanding of the basis for our relationship with God. The covenant of works demands perfect obedience and highlights our inability to attain righteousness on our own due to sin. In contrast, the covenant of grace assures us that salvation is purely by God’s grace and the finished work of Christ. Recognizing this distinction empowers believers to live in the freedom of grace rather than in the bondage of law, as noted in Romans 6:14, where we are told that sin shall not have dominion over us because we are not under law but under grace. This understanding fosters reliance on Christ for peace and assurance of our standing before God.