Authenticating with nonces

Hi, I am having trouble with the concept of authenticating users via WP-Rest, I haven’t found what I’m looking for in the documentation regarding this issue.

When I add the authentication routes, the app refuses to authenticate users, and I am unable to act on the user when I am inside the callback function. It simply returns an empty array.

Here is my header (Just trying for basic auth)

$headers = array (
    'Authorization' => 'Basic ' . base64_encode( 'admin' . ':' . 'sdfoi4rsfd^pBx' ),
  );

and here is the route.

register_rest_route( 'creator/v1', '/product', array(
        'methods' => WP_REST_Server::READABLE,
        'headers' => $headers,
        'callback'=> 'my_test_func',
        'permission_callback' => function () {
            return current_user_can('read');
        }
    ) );

Ultimately we are trying to authenticate users into our app via our own endpoints (which will probably just wrap around the endpoints native to the app), but I think conceptually I am missing something here. Any help or feedback at all would be appreciated.

https://wordpress.org/plugins/json-rest-api/