Why is the covenant of grace essential for understanding salvation?

The covenant of grace is foundational to understanding salvation because it illustrates God's sovereign plan for redeeming His people. In eternal counsel, the Father, Son, and Holy Spirit agreed on the means of salvation, designating Christ as the Savior who would take on human nature and bear the sins of His people. In this covenant, Christ acts as both our representative and mediator, satisfying God's justice through His sacrifice. This covenant assures believers that every detail relating to their salvation has been ordained and secured by divine will, emphasizing that we are saved by grace alone through faith in Jesus Christ.