A person or application that uses the AWS account root user, an IAM user, or an IAM role to sign in and make requests to AWS

A principal is a person or application that can make a request for an action or operation on an AWS
resource. The principal is authenticated as the AWS account root user or an IAM entity to make requests to AWS. As a best practice, do not use your root user credentials for your daily work. Instead, create IAM entities (users and roles). You can also support federated users or programmatic access to allow an application to access your AWS account.

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