Blockchain Technology and Applications

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Digital signature

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Blockchain Technology and Applications

Definition

A digital signature is a cryptographic technique that allows an individual or entity to verify the authenticity and integrity of a digital message or document. By using public key cryptography, a digital signature ensures that the sender cannot deny having sent the message, and that the message has not been altered during transmission. This mechanism is critical for establishing trust in digital communications, transactions, and systems.

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5 Must Know Facts For Your Next Test

  1. Digital signatures use asymmetric cryptography, where a private key signs the message and a corresponding public key verifies it.
  2. They provide a way to ensure data integrity, as any alteration in the message after it has been signed will render the digital signature invalid.
  3. Digital signatures are widely used in various applications such as software distribution, financial transactions, and legal agreements.
  4. The use of digital signatures is often governed by laws and regulations, such as the Electronic Signatures in Global and National Commerce Act (ESIGN) in the U.S.
  5. Digital signatures not only authenticate the sender's identity but also protect against forgery, making them essential for secure communication.

Review Questions

  • How does a digital signature enhance the security of communication between parties?
    • A digital signature enhances security by ensuring both the authenticity and integrity of messages exchanged between parties. When a sender uses their private key to sign a message, only their corresponding public key can verify this signature. This process confirms that the message truly originated from the claimed sender and has not been tampered with during transmission, providing confidence in digital interactions.
  • Discuss the role of hash functions in creating and verifying digital signatures.
    • Hash functions play a crucial role in the creation and verification of digital signatures by ensuring that only the original data can produce a specific hash value. When signing a message, its hash is generated and then encrypted with the sender's private key to create the digital signature. During verification, the recipient hashes the received message again and compares it to the decrypted signature's hash. If both match, it confirms that the message is unchanged and authentically from the sender.
  • Evaluate how digital signatures contribute to non-repudiation in electronic transactions.
    • Digital signatures contribute significantly to non-repudiation by linking a signed document or transaction unequivocally to its signer. Since only the signer possesses their private key used for signing, they cannot deny having signed it once it has been created. This establishes a robust legal standing in disputes, as parties cannot refute their involvement or consent in transactions, thereby fostering trust in electronic commerce and communications.
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