Two covenants, Covenant of works and the covenant of grace.
The bible tells us that no one is justified by the works of the law, so everyone who was ever saved was saved by grace.
Thus the two covenants have both been in operation since creation, but Christ had to come at some point and make the payment for these sinners who are saved by grace.
The covenant of works is a covenant between God and man where God says do this and live, but we fail.
The covenant of grace on the other hand is a covenant between God the Father and God the Son. Jesus Chrsit, God the Son fullfills all the terms of the covenant on our behalf. He lives the perfect obedient life for us and he also takes the punnishment for our sins.
The covenant of works is a failure in that we fail to keep the law.
But praise God that he has worked on our behalf.
Romans 8:3


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