Question

What is the importance of henselization in valuation theory, when the rank of valuation is bigger than one? Thanks

Answer 1

Same as its importance in commutative algebra. Just to be clear about the definition, for a valued field $K$ with valuation ring $R$, the henselization $K^{\rm{h}}$ is defined to be the valued extension Frac($R^{\rm{h}}$) for the henselization $R^{\rm{h}}$ of $R$ in the sense of commutative algebra (and $R^{\rm{h}}$ is equipped with a preferred valuation extending the one on $R$).

This satisfies good properties as if it were a "completion" of $K$ even though it is (separable) algebraic over $K$, and it can be "approximated" using local-etale extensions of $R$; that is really the point. It satisfies Hensel's Lemma and every finite extension $F$ of $K^{\rm{h}}$ admits a unique valuation (necessarily henselian...) extending the one on $K^{\rm{h}}$ (with associated valuation ring that is the integral closure of $R^{\rm{h}}$ in $F$).