See every copyrighted product it can be a game or a software etc.when you buy it off the shelf officially by paying the amount contains a product key or a license which is only to be used for that certain piece of content. The people who pirate these games or softwares need a way through which you can use these applications without paying for them, so what they generally do is that they decrypt the copyright protection installed on the software and then reverse engineer it which leads to a crack or many times a key generator (mostly crack).
The crack file is a part or a certain portion of the files which the application needs to run and the people who made the software put the copyright protection in this file( Of course they want to make money.!! ), but there are people who can bypass it easily/hardly, they reverse engineer it so it can be used by us ( without paying even a penny ).
In layman terms a crack file is a patch file or a part of the program which has been reverse engineered so it can be used without using the original license keys or authorization.
How to use it ?
This depends from app to app/game to game because of the vastness of the available copyright protections there is no one way which will work for all the applications ... the application you have downloaded must contain instructions on how to use the crack file.
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