A digital signature is a specific mechanism used in digital financial systems to confirm the authenticity of transferred data. The signature is also used in other areas (health care, legal field, etc.) to confirm the authenticity of documents and information transmitted in electronic format. Through the use of a digital signature, the integrity of crypto-assets, the stability of ecosystems and the transparency of all processes of using digital coins are ensured.

Generation

Simply put, a digital signature is a special, unique code encrypted using a specific algorithm. It is the type of algorithm that determines the reliability of information encryption and, accordingly, the degree of risk of its theft or use for unlawful purposes or unauthorized waste. The most advanced option today is the one that uses asymmetric cryptography. It is possible to change such data only if you have a private key.

Application

Using a digital signature ensures:

• integrity of messages in the blockchain database;
• security of data storage in blockchains;
• protection of blocks, transactions, and smart contracts.

All digital signatures are subject to authentication and non-repudiation conditions.