Why is the concept of imputation significant in Christianity?

Imputation is a theological concept that describes how Christ takes on the sins of His people, and in return, His righteousness is credited to them. This is illustrated in Romans 5:12-21, where Adam's sin leads to death for all mankind, yet through Christ, grace abounds more than sin. When God imputes our sins to Christ, He satisfies His own justice, freeing us from the penalty of sin while simultaneously declaring us righteous through Christ's obedience. This dual imputation—of our sins to Christ and His righteousness to us—is foundational to understanding our salvation and the depth of God's grace.