ESV - 1 Therefore, since we have been justified by faith, we have peace with God through our Lord Jesus Christ.
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As indicated in the verse cited in the question, we are justified (reconciled to God, or declared righteous by Him) by faith -- not faith in ourselves, or faith in or based on anything that we have done or can do, but solely and completely in the redemption that Jesus gained for us through His sinless life, atoning death, and resurrection. Jesus' death paid the full penalty (eternal separation from God) that God required of humanity for all of its sin from eternity past to eternity future, and His resurrection proved the sufficiency of that payment in God's sight, allowing those who place their faith in it (rather than in their own actions or abilities) to receive the same eternal life in God's presence that Jesus achieved.
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