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nonce="97b51789-8d1a-4934-853a-2077896e527b">{}</script><div id="__APP"><div class="css-gpt1ua emq16jn0"><div></div></div><div class="css-0"><div class="css-aa2yx7"><div class="css-1uhxyyb"><div class="css-wcquo4"><div class="css-190yvx7 e4o4ke10"><div class="css-1yjvs5a"><a href="/en/articles/tags/blockchain"><div class="css-dy784j e11944280">Blockchain</div></a><a href="/en/articles/tags/tech"><div class="css-dy784j e11944280">Tech</div></a><a href="/en/articles/tags/security"><div class="css-dy784j e11944280">Security</div></a><a href="/en/articles/tags/cryptography"><div class="css-dy784j e11944280">Cryptography</div></a></div><div class="cover css-vurnku"><div class="coverRatio css-vurnku"></div><div class="coverBox css-vurnku"><img src="https://public.bnbstatic.com/static/academy/uploads-original/i0dF2atEI4ZfVJs62fQY.png" alt="What Is a Digital Signature?" class="coverImage css-1v88uvz"/></div></div><div class="css-1e8gb8u"><a title="Home" class="css-11590kr e3gfchs0" href="/en/"><div class="css-nybri6 e10oxksb0">Home</div></a><a title="Articles" class="css-11590kr e3gfchs0" href="/en/articles"><div class="css-nybri6 e10oxksb0">Articles</div></a><div class="css-cijxjj e10oxksb0">What Is a Digital Signature?</div></div><h1 class="css-wb6aqo eis1zsm0">What Is a Digital Signature?</h1><div class="css-4cffwv"><div class="css-ztm6zz e1tu9fjz0"><div class="css-2aitzv ehtub1d0"></div>Intermediate</div><span class="css-q1dbf8 e10oxksb0">Published <!-- -->Aug 19, 2019</span><span class="css-q1dbf8 e10oxksb0">Updated <!-- -->Jan 31, 2023</span><div class="css-2yqw61"><svg viewBox="0 0 24 24" xmlns="http://www.w3.org/2000/svg" fill="currentColor" class="css-1xgr03x e1rk5mue0"><path d="M11.9963 4C13.5785 4 15.1252 4.46919 16.4408 5.34824C17.7564 6.22729 18.7818 7.47672 19.3873 8.93853C19.9928 10.4003 20.1512 12.0089 19.8426 13.5607C19.5339 15.1126 18.772 16.538 17.6531 17.6569C16.5343 18.7757 15.1089 19.5376 13.557 19.8463C12.0052 20.155 10.3966 19.9965 8.93481 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class="richtext-container css-fbxu07" style="white-space:pre-wrap;overflow-wrap:break-word"><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">A digital signature is a cryptographic mechanism used to verify the authenticity and integrity of digital data. We may consider it as a digital version of the ordinary handwritten signatures, but with higher levels of complexity and security.</span></p><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">In simple terms, we may describe a digital signature as a code that is attached to a message or document. After generated, the code acts as proof that the message hasn’t been tampered with along its way from sender to receiver.</span></p><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">Although the concept of securing communications using cryptography </span><a data-bn-type="link" href="https://academy.binance.com/en/articles/history-of-cryptography" target="_blank" class="richtext-link css-1sey3nz">dates back to ancient times</a><span data-bn-type="text" class="richtext-text css-6hm6tl">, digital signature schemes became a possible reality in the 1970s - thanks to the development of </span><a data-bn-type="link" href="https://academy.binance.com/en/articles/what-is-public-key-cryptography" target="_blank" class="richtext-link css-1sey3nz">Public-Key Cryptography (PKC)</a><span data-bn-type="text" class="richtext-text css-6hm6tl">. So, to learn how digital signatures work, we need to first understand the basics of hash functions and public-key cryptography.</span></p><p class=" richtext-paragraph richtext-paragraph-empty css-8a8aie"><br/></p><h2 data-bn-type="text" id="Hash-functions" class="css-tcrek1"><span data-bn-type="text" class="richtext-text css-6hm6tl">Hash functions</span></h2><p class=" richtext-paragraph css-8a8aie"><a data-bn-type="link" href="https://academy.binance.com/en/articles/what-is-hashing" target="_blank" class="richtext-link css-1sey3nz">Hashing</a><span data-bn-type="text" class="richtext-text css-6hm6tl"> is one of the core elements of a digital signature system. The process of hashing involves transforming data of any size into a fixed-size output. This is done by a special kind of algorithms known as hash functions. The output generated by a hash function is known as a hash value or message digest.</span></p><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">When combined with </span><a data-bn-type="link" href="https://academy.binance.com/en/glossary/cryptography" target="_blank" class="richtext-link css-1sey3nz">cryptography</a><span data-bn-type="text" class="richtext-text css-6hm6tl">, the so-called cryptographic hash functions can be used to generate a hash value (digest) that acts as a unique digital fingerprint. This means that any change in the input data (message) would result in a completely different output (hash value). And that’s the reason cryptographic hash functions are widely used for verifying the authenticity of digital data.</span></p><p class=" richtext-paragraph richtext-paragraph-empty css-8a8aie"><br/></p><h2 data-bn-type="text" id="Publickey-cryptography-PKC" class="css-tcrek1"><span data-bn-type="text" class="richtext-text css-6hm6tl">Public-key cryptography (PKC)</span></h2><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">Public-key cryptography, or PKC, refers to a cryptographic system that makes use of a pair of keys: one public key and one private key. The two keys are mathematically related and can be used for both data encryption and digital signatures.</span></p><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">As an encryption tool, PKC is more secure than the more rudimentary methods of </span><a data-bn-type="link" href="https://academy.binance.com/en/articles/what-is-symmetric-key-cryptography" target="_blank" class="richtext-link css-1sey3nz">symmetric encryption</a><span data-bn-type="text" class="richtext-text css-6hm6tl">. While older systems rely on the same key to encrypt and decrypt information, PKC allows for data </span><a data-bn-type="link" href="https://academy.binance.com/en/glossary/encryption" target="_blank" class="richtext-link css-1sey3nz">encryption</a><span data-bn-type="text" class="richtext-text css-6hm6tl"> with the public key and data decryption with its corresponding private key.</span></p><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">Other than that, the PKC scheme may also be applied in the generation of digital signatures. In essence, the process consists of hashing a message (or digital data) along with the signer’s private key. Next, the recipient of the message can check if the signature is valid by using the public key provided by the signer.</span></p><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">In some situations, digital signatures may involve encryption, but that isn’t always the case. For instance, the </span><a data-bn-type="link" href="https://academy.binance.com/en/articles/what-is-bitcoin" target="_blank" class="richtext-link css-1sey3nz">Bitcoin</a><span data-bn-type="text" class="richtext-text css-6hm6tl"> blockchain makes use of PKC and digital signatures, but unlike many tend to believe, there is no encryption in the process. Technically, Bitcoin deploys the so-called Elliptic Curve Digital Signature Algorithm (ECDSA) to authenticate transactions.</span></p><p class=" richtext-paragraph richtext-paragraph-empty css-8a8aie"><br/></p><h2 data-bn-type="text" id="How-digital-signatures-work" class="css-tcrek1"><span data-bn-type="text" class="richtext-text css-6hm6tl">How digital signatures work</span></h2><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">In the context of cryptocurrencies, a digital signature system often consists of three basic steps: hashing, signing, and verifying.</span></p><h3 data-bn-type="text" id="Hashing-the-data" class="css-1uz5wgv"><span data-bn-type="text" class="richtext-text css-6hm6tl">Hashing the data</span></h3><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">The first step is to hash the message or digital data. This is done by submitting the data through a </span><a data-bn-type="link" href="https://academy.binance.com/en/articles/what-is-hashing" target="_blank" class="richtext-link css-1sey3nz">hashing</a><span data-bn-type="text" class="richtext-text css-6hm6tl"> algorithm so that a hash value is generated (i.e., the message digest). As mentioned, the messages can vary significantly in size, but when they are hashed, all their hash values have the same length. This is the most basic property of a hash function.</span></p><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">However, hashing the data is not a must for producing a digital signature because one can use a private key to sign a message that wasn’t hashed at all. But for cryptocurrencies, the data is always hashed because dealing with fixed-length digests facilitates the whole process.</span></p><h3 data-bn-type="text" id="Signing" class="css-1uz5wgv"><span data-bn-type="text" class="richtext-text css-6hm6tl">Signing</span></h3><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">After the information is hashed, the sender of the message needs to sign it. This is the moment where public-key cryptography comes into play. There are several types of digital signature algorithms, each with its own particular mechanism. But essentially, the hashed message will be signed with a private key, and the receiver of the message can then check its validity by using the corresponding public key (provided by the signer).</span></p><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">Put in another way, if the private key is not included when the signature is generated, the receiver of the message won’t be able to use the corresponding public key to verify its validity. Both public and private keys are generated by the sender of the message, but only the public key is shared with the receiver.</span></p><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">It’s worth noting that digital signatures are directly related to the content of each message. So unlike handwritten signatures, that tend to be the same regardless of the message, each digitally signed message will have a different digital signature.</span></p><h3 data-bn-type="text" id="Verifying" class="css-1uz5wgv"><span data-bn-type="text" class="richtext-text css-6hm6tl">Verifying</span></h3><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">Let’s take an example to illustrate the whole process until the final step of verification. Imagine that Alice writes a message to Bob, hashes it, and then combines the hash value with her private key to generate a digital signature. The signature will work as a unique digital fingerprint of that particular message.</span></p><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">When Bob receives the message, he can check the validity of the digital signature by using the public key provided by Alice. This way, Bob can be sure that the signature was created by Alice because only she has the private key that corresponds to that public key (at least that’s what we expect).</span></p><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">So, it’s crucial for Alice to keep her private key in secret. If another person gets their hands on Alice’s private key, they can create digital signatures and pretend to be Alice. In the context of Bitcoin, this means someone could use Alice’s private key to move or spend her Bitcoins without her permission.</span></p><p class=" richtext-paragraph richtext-paragraph-empty css-8a8aie"><br/></p><h2 data-bn-type="text" id="Why-are-digital-signatures-important" class="css-tcrek1"><span data-bn-type="text" class="richtext-text css-6hm6tl">Why are digital signatures important?</span></h2><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">Digital signatures are often used to achieve three results: data integrity, authentication, and non-repudiation.</span></p><ul class="css-q7gjfc"><li class="css-jg2fgz"><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">Data integrity. Bob can verify that Alice’s message wasn’t changed along its way. Any modification in the message would produce a completely different signature.</span></p></li><li class="css-jg2fgz"><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">Authenticity. As long as Alice’s private key is kept in secret, Bob can use her public key to confirm that the digital signatures were created by Alice and no one else.</span></p></li><li class="css-jg2fgz"><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">Non-repudiation. Once the signature has been generated, Alice won’t be able to deny having signed it in the future, unless her private key gets somehow compromised.</span></p></li></ul><p class=" richtext-paragraph richtext-paragraph-empty css-8a8aie"><br/></p><h2 data-bn-type="text" id="Use-cases" class="css-tcrek1"><span data-bn-type="text" class="richtext-text css-6hm6tl">Use cases</span></h2><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">Digital signatures can be applied to various kinds of digital documents and certificates. As such, they have several applications. Some of the most common use cases include:  </span></p><ul class="css-q7gjfc"><li class="css-jg2fgz"><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">Information Technology. To enhance the security of Internet communication systems.</span></p></li><li class="css-jg2fgz"><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">Finance. Digital signatures can be implemented to audits, expense reports, loan agreements, and much more.</span></p></li><li class="css-jg2fgz"><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">Legal. Digital signing of all sorts of business contracts and legal agreements, including governmental papers.</span></p></li><li class="css-jg2fgz"><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">Healthcare. Digital signatures can prevent fraud of prescriptions and medical records.</span></p></li><li class="css-jg2fgz"><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">Blockchain. Digital signature schemes ensure that only the rightful owners of the cryptocurrencies are able to sign a transaction to move the funds (as long as their private keys aren’t compromised).</span></p></li></ul><p class=" richtext-paragraph richtext-paragraph-empty css-8a8aie"><br/></p><h2 data-bn-type="text" id="Limitations" class="css-tcrek1"><span data-bn-type="text" class="richtext-text css-6hm6tl">Limitations</span></h2><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">The major challenges faced by digital signature schemes rely on at least three requirements: </span></p><ul class="css-q7gjfc"><li class="css-jg2fgz"><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">Algorithm. The quality of the algorithms used in a digital signature scheme is important. This includes the choice of reliable </span><a data-bn-type="link" href="https://academy.binance.com/en/articles/what-is-hashing" target="_blank" class="richtext-link css-1sey3nz">hash functions</a><span data-bn-type="text" class="richtext-text css-6hm6tl"> and cryptographic systems.</span></p></li><li class="css-jg2fgz"><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">Implementation. If the algorithms are good, but the implementation is not, the digital signature system will likely present flaws.</span></p></li><li class="css-jg2fgz"><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">Private Key. If the private keys get leaked or somehow compromised, the properties of authenticity and non-repudiation will be invalidated. For cryptocurrency users, losing a private key may result in significant financial losses.</span></p></li></ul><p class=" richtext-paragraph richtext-paragraph-empty css-8a8aie"><br/></p><h2 data-bn-type="text" id="Electronic-signatures-vs-digital-signatures" class="css-tcrek1"><span data-bn-type="text" class="richtext-text css-6hm6tl">Electronic signatures vs. digital signatures</span></h2><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">Simply put, digital signatures relate to one particular kind of electronic signatures - which refer to any electronic method of signing documents and messages. Thus, all digital signatures are electronic signatures, but the opposite isn’t always true.</span></p><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">The main difference between them is the authentication method. Digital signatures deploy cryptographic systems, such as hash functions, </span><a data-bn-type="link" href="https://academy.binance.com/en/articles/what-is-public-key-cryptography" target="_blank" class="richtext-link css-1sey3nz">public-key cryptography</a><span data-bn-type="text" class="richtext-text css-6hm6tl">, and encryption techniques.</span></p><p class=" richtext-paragraph richtext-paragraph-empty css-8a8aie"><br/></p><h2 data-bn-type="text" id="Closing-thoughts" class="css-tcrek1"><span data-bn-type="text" class="richtext-text css-6hm6tl">Closing thoughts</span></h2><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">Hash functions and public-key cryptography are at the core of digital signature systems, which are now applied to a wide range of use cases. If properly implemented, digital signatures can increase security, ensure integrity, and facilitate the authentication of all kinds of digital data.</span></p><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">In the blockchain realm, digital signatures are used to sign and authorize cryptocurrency transactions. They are particularly important for Bitcoin because the signatures ensure that coins can only be spent by the individuals that possess the corresponding private keys.</span></p><p class=" richtext-paragraph css-8a8aie"><span data-bn-type="text" class="richtext-text css-6hm6tl">Although we’ve been using both electronic and digital signatures for years, there is still a lot of room for growth. A great portion of today’s bureaucracy is still based on paperwork, but we will likely see more adoption of digital signature schemes as we migrate to a more digitalized system.</span></p></div></article></div></div><div class="css-1olcmky"><div class="css-14bgbm8 eehksor0"><div class="css-vurnku"><div data-bn-type="text" class="css-zzqkfp">Share Posts</div><div class="css-1u83isv eehksor0"><div class="css-0 eehksor2"><a href="https://twitter.com/intent/tweet?url=https%3A%2F%2Facademy.binance.com%2Fen%2Farticles%2Fwhat-is-a-digital-signature%3F%26utm_campaign%3Dweb_share_link%26utm_source%3Dtwitter&amp;text=What%20Is%20a%20Digital%20Signature?" aria-label="Share this article on twitter" rel="noopener noreferrer" target="_blank" class="css-hv3wqz el1tq4q1"><svg viewBox="0 0 18 14" xmlns="http://www.w3.org/2000/svg" fill="currentColor" class="css-0 e1rk5mue0"><path d="M5.90944 13.7676C7.18903 13.7764 8.45762 13.5308 9.64152 13.0452C10.8254 12.5596 11.901 11.8436 12.8058 10.9387C13.7107 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Your reward has been credited to your account. To redeem the token voucher reward, log in to your account and go to Reward Center.","learn-and-earn-active-popup-risk-passed-cta-button":"Claim your reward","learn-and-earn-active-popup-risk-passed-title":"Your free {{income}} {{asset}} reward is ready","learn-and-earn-active-popup-risk-review-content":"You can claim your reward soon. Download the Binance App now to discover more promotions while you wait.","learn-and-earn-active-popup-risk-review-cta-button":"Download Binance App","learn-and-earn-active-popup-risk-review-title":"Your reward is almost ready","learn-and-earn-active-popup-risk-suspended-content":"There is something wrong with your account. 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We may consider it as a digital version of the ordinary handwritten signatures, but with higher levels of complexity and security.\u003c/p\u003e\u003cp data-block-id=\"e5892c63-746e-49a4-b9c1-ce6c30c3b122\"\u003eIn simple terms, we may describe a digital signature as a code that is attached to a message or document. After generated, the code acts as proof that the message hasn’t been tampered with along its way from sender to receiver.\u003c/p\u003e\u003cp data-block-id=\"bc63b959-8aa4-435c-aa5c-0bd02712d692\"\u003eAlthough the concept of securing communications using cryptography \u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" appurl=\"\" href=\"https://academy.binance.com/en/articles/history-of-cryptography\" appUrl=\"\" customEvents=\"[object Object]\"\u003edates back to ancient times\u003c/a\u003e, digital signature schemes became a possible reality in the 1970s - thanks to the development of \u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" appurl=\"\" href=\"https://academy.binance.com/en/articles/what-is-public-key-cryptography\" appUrl=\"\" customEvents=\"[object Object]\"\u003ePublic-Key Cryptography (PKC)\u003c/a\u003e. So, to learn how digital signatures work, we need to first understand the basics of hash functions and public-key cryptography.\u003c/p\u003e\u003cp data-block-id=\"b688767b-82eb-4303-a0d3-903a763a9b94\"\u003e\u003cbr\u003e\u003c/p\u003e\u003ch2 id=\"header-0\"\u003eHash functions\u003c/h2\u003e\u003cp data-block-id=\"ef3d125e-1003-4e1e-b3ee-f45e2bd2df5e\"\u003e\u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" appurl=\"\" href=\"https://academy.binance.com/en/articles/what-is-hashing\" appUrl=\"\" customEvents=\"[object Object]\"\u003eHashing\u003c/a\u003e is one of the core elements of a digital signature system. The process of hashing involves transforming data of any size into a fixed-size output. This is done by a special kind of algorithms known as hash functions. The output generated by a hash function is known as a hash value or message digest.\u003c/p\u003e\u003cp data-block-id=\"92b90774-6772-4eb6-95ce-7b98df12bb28\"\u003eWhen combined with \u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" appurl=\"\" href=\"https://academy.binance.com/en/glossary/cryptography\" appUrl=\"\" customEvents=\"[object Object]\"\u003ecryptography\u003c/a\u003e, the so-called cryptographic hash functions can be used to generate a hash value (digest) that acts as a unique digital fingerprint. This means that any change in the input data (message) would result in a completely different output (hash value). And that’s the reason cryptographic hash functions are widely used for verifying the authenticity of digital data.\u003c/p\u003e\u003cp data-block-id=\"948196c4-480c-4f56-b56b-7c36e44f9b33\"\u003e\u003cbr\u003e\u003c/p\u003e\u003ch2 id=\"header-1\"\u003ePublic-key cryptography (PKC)\u003c/h2\u003e\u003cp data-block-id=\"76c324fb-790c-4872-8afa-dd9c0ee6edcd\"\u003ePublic-key cryptography, or PKC, refers to a cryptographic system that makes use of a pair of keys: one public key and one private key. The two keys are mathematically related and can be used for both data encryption and digital signatures.\u003c/p\u003e\u003cp data-block-id=\"0e506402-1105-4e04-856d-1d811085ff51\"\u003eAs an encryption tool, PKC is more secure than the more rudimentary methods of \u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" appurl=\"\" href=\"https://academy.binance.com/en/articles/what-is-symmetric-key-cryptography\" appUrl=\"\" customEvents=\"[object Object]\"\u003esymmetric encryption\u003c/a\u003e. While older systems rely on the same key to encrypt and decrypt information, PKC allows for data \u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" appurl=\"\" href=\"https://academy.binance.com/en/glossary/encryption\" appUrl=\"\" customEvents=\"[object Object]\"\u003eencryption\u003c/a\u003e with the public key and data decryption with its corresponding private key.\u003c/p\u003e\u003cp data-block-id=\"efb17fb3-4aee-4338-80c1-9d75189a83d2\"\u003eOther than that, the PKC scheme may also be applied in the generation of digital signatures. In essence, the process consists of hashing a message (or digital data) along with the signer’s private key. Next, the recipient of the message can check if the signature is valid by using the public key provided by the signer.\u003c/p\u003e\u003cp data-block-id=\"2b1b4518-8c78-401d-af0a-e1b5f741c588\"\u003eIn some situations, digital signatures may involve encryption, but that isn’t always the case. For instance, the \u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" appurl=\"\" href=\"https://academy.binance.com/en/articles/what-is-bitcoin\" appUrl=\"\" customEvents=\"[object Object]\"\u003eBitcoin\u003c/a\u003e blockchain makes use of PKC and digital signatures, but unlike many tend to believe, there is no encryption in the process. Technically, Bitcoin deploys the so-called Elliptic Curve Digital Signature Algorithm (ECDSA) to authenticate transactions.\u003c/p\u003e\u003cp data-block-id=\"93f7be4b-1a6a-45a3-b48d-58fcc6cc4c35\"\u003e\u003cbr\u003e\u003c/p\u003e\u003ch2 id=\"header-2\"\u003eHow digital signatures work\u003c/h2\u003e\u003cp data-block-id=\"24d2844c-73ba-4f64-ba24-c1d5f1a5e380\"\u003eIn the context of cryptocurrencies, a digital signature system often consists of three basic steps: hashing, signing, and verifying.\u003c/p\u003e\u003ch3 data-block-id=\"6f538eb5-1489-4fe2-96b5-c800fa6bda7f\"\u003eHashing the data\u003c/h3\u003e\u003cp data-block-id=\"1a50d12f-0848-40dd-86f3-d512010aa2ec\"\u003eThe first step is to hash the message or digital data. This is done by submitting the data through a \u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" appurl=\"\" href=\"https://academy.binance.com/en/articles/what-is-hashing\" appUrl=\"\" customEvents=\"[object Object]\"\u003ehashing\u003c/a\u003e algorithm so that a hash value is generated (i.e., the message digest). As mentioned, the messages can vary significantly in size, but when they are hashed, all their hash values have the same length. This is the most basic property of a hash function.\u003c/p\u003e\u003cp data-block-id=\"98ffa281-197b-496f-baa8-97df2326d386\"\u003eHowever, hashing the data is not a must for producing a digital signature because one can use a private key to sign a message that wasn’t hashed at all. But for cryptocurrencies, the data is always hashed because dealing with fixed-length digests facilitates the whole process.\u003c/p\u003e\u003ch3 data-block-id=\"97bd4902-54cc-4295-9672-e674c0a13790\"\u003eSigning\u003c/h3\u003e\u003cp data-block-id=\"adcd492e-b8e9-4ec8-a510-c0882f35f6fe\"\u003eAfter the information is hashed, the sender of the message needs to sign it. This is the moment where public-key cryptography comes into play. There are several types of digital signature algorithms, each with its own particular mechanism. But essentially, the hashed message will be signed with a private key, and the receiver of the message can then check its validity by using the corresponding public key (provided by the signer).\u003c/p\u003e\u003cp data-block-id=\"7c8532a2-bc01-4821-8628-d946f18c55af\"\u003ePut in another way, if the private key is not included when the signature is generated, the receiver of the message won’t be able to use the corresponding public key to verify its validity. Both public and private keys are generated by the sender of the message, but only the public key is shared with the receiver.\u003c/p\u003e\u003cp data-block-id=\"3ae98e4d-d1c1-4a6e-b054-fd483df1d952\"\u003eIt’s worth noting that digital signatures are directly related to the content of each message. So unlike handwritten signatures, that tend to be the same regardless of the message, each digitally signed message will have a different digital signature.\u003c/p\u003e\u003ch3 data-block-id=\"071f7d84-478a-4f53-b9a0-91c79b003a86\"\u003eVerifying\u003c/h3\u003e\u003cp data-block-id=\"a869ea7b-9d35-4f13-ab0b-39243be548e2\"\u003eLet’s take an example to illustrate the whole process until the final step of verification. Imagine that Alice writes a message to Bob, hashes it, and then combines the hash value with her private key to generate a digital signature. The signature will work as a unique digital fingerprint of that particular message.\u003c/p\u003e\u003cp data-block-id=\"1dec3c09-11f0-4545-9575-3cdff5dfc75e\"\u003eWhen Bob receives the message, he can check the validity of the digital signature by using the public key provided by Alice. This way, Bob can be sure that the signature was created by Alice because only she has the private key that corresponds to that public key (at least that’s what we expect).\u003c/p\u003e\u003cp data-block-id=\"de3c3e42-00a9-453d-9a16-0913e9670252\"\u003eSo, it’s crucial for Alice to keep her private key in secret. If another person gets their hands on Alice’s private key, they can create digital signatures and pretend to be Alice. In the context of Bitcoin, this means someone could use Alice’s private key to move or spend her Bitcoins without her permission.\u003c/p\u003e\u003cp data-block-id=\"a194e45b-2bd6-42fa-bd36-9d77f3cf22e9\"\u003e\u003cbr\u003e\u003c/p\u003e\u003ch2 id=\"header-3\"\u003eWhy are digital signatures important?\u003c/h2\u003e\u003cp data-block-id=\"20c428cf-eac8-4272-bfff-fb4b449e4286\"\u003eDigital signatures are often used to achieve three results: data integrity, authentication, and non-repudiation.\u003c/p\u003e\u003cul data-block-id=\"69b39126-094a-49fb-a0ad-7eec28d0dac6\"\u003e\u003cli\u003e\u003cp\u003eData integrity. Bob can verify that Alice’s message wasn’t changed along its way. Any modification in the message would produce a completely different signature.\u003c/p\u003e\u003c/li\u003e\u003cli\u003e\u003cp\u003eAuthenticity. As long as Alice’s private key is kept in secret, Bob can use her public key to confirm that the digital signatures were created by Alice and no one else.\u003c/p\u003e\u003c/li\u003e\u003cli\u003e\u003cp\u003eNon-repudiation. Once the signature has been generated, Alice won’t be able to deny having signed it in the future, unless her private key gets somehow compromised.\u003c/p\u003e\u003c/li\u003e\u003c/ul\u003e\u003cp data-block-id=\"bb1f6659-f212-4b60-830d-46d6bdd7d74b\"\u003e\u003cbr\u003e\u003c/p\u003e\u003ch2 id=\"header-4\"\u003eUse cases\u003c/h2\u003e\u003cp data-block-id=\"91836235-7803-49df-8fba-125749d68d4d\"\u003eDigital signatures can be applied to various kinds of digital documents and certificates. As such, they have several applications. Some of the most common use cases include:  \u003c/p\u003e\u003cul data-block-id=\"45c5545f-457c-42f5-8e26-e7b6a5491a29\"\u003e\u003cli\u003e\u003cp\u003eInformation Technology. To enhance the security of Internet communication systems.\u003c/p\u003e\u003c/li\u003e\u003cli\u003e\u003cp\u003eFinance. Digital signatures can be implemented to audits, expense reports, loan agreements, and much more.\u003c/p\u003e\u003c/li\u003e\u003cli\u003e\u003cp\u003eLegal. Digital signing of all sorts of business contracts and legal agreements, including governmental papers.\u003c/p\u003e\u003c/li\u003e\u003cli\u003e\u003cp\u003eHealthcare. Digital signatures can prevent fraud of prescriptions and medical records.\u003c/p\u003e\u003c/li\u003e\u003cli\u003e\u003cp\u003eBlockchain. Digital signature schemes ensure that only the rightful owners of the cryptocurrencies are able to sign a transaction to move the funds (as long as their private keys aren’t compromised).\u003c/p\u003e\u003c/li\u003e\u003c/ul\u003e\u003cp data-block-id=\"2d023819-2938-42bb-8f20-c0a472b35f49\"\u003e\u003cbr\u003e\u003c/p\u003e\u003ch2 id=\"header-5\"\u003eLimitations\u003c/h2\u003e\u003cp data-block-id=\"30371acf-0c09-472b-9453-d47bf8abf8f0\"\u003eThe major challenges faced by digital signature schemes rely on at least three requirements: \u003c/p\u003e\u003cul data-block-id=\"f41618fe-faaa-48fe-b46c-de63b54a0dc7\"\u003e\u003cli\u003e\u003cp\u003eAlgorithm. The quality of the algorithms used in a digital signature scheme is important. This includes the choice of reliable \u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" appurl=\"\" href=\"https://academy.binance.com/en/articles/what-is-hashing\" appUrl=\"\" customEvents=\"[object Object]\"\u003ehash functions\u003c/a\u003e and cryptographic systems.\u003c/p\u003e\u003c/li\u003e\u003cli\u003e\u003cp\u003eImplementation. If the algorithms are good, but the implementation is not, the digital signature system will likely present flaws.\u003c/p\u003e\u003c/li\u003e\u003cli\u003e\u003cp\u003ePrivate Key. If the private keys get leaked or somehow compromised, the properties of authenticity and non-repudiation will be invalidated. For cryptocurrency users, losing a private key may result in significant financial losses.\u003c/p\u003e\u003c/li\u003e\u003c/ul\u003e\u003cp data-block-id=\"c177da61-8986-41d4-ab55-d69e41a1e646\"\u003e\u003cbr\u003e\u003c/p\u003e\u003ch2 id=\"header-6\"\u003eElectronic signatures vs. digital signatures\u003c/h2\u003e\u003cp data-block-id=\"f075d20e-135c-4484-b047-343382dfbe84\"\u003eSimply put, digital signatures relate to one particular kind of electronic signatures - which refer to any electronic method of signing documents and messages. Thus, all digital signatures are electronic signatures, but the opposite isn’t always true.\u003c/p\u003e\u003cp data-block-id=\"fc577bc5-0396-46e9-9ce3-7b8bee960ea2\"\u003eThe main difference between them is the authentication method. Digital signatures deploy cryptographic systems, such as hash functions, \u003ca target=\"_blank\" rel=\"noopener noreferrer nofollow\" appurl=\"\" href=\"https://academy.binance.com/en/articles/what-is-public-key-cryptography\" appUrl=\"\" customEvents=\"[object Object]\"\u003epublic-key cryptography\u003c/a\u003e, and encryption techniques.\u003c/p\u003e\u003cp data-block-id=\"e4dd10b0-f20f-4233-b03c-b7b6eda753fc\"\u003e\u003cbr\u003e\u003c/p\u003e\u003ch2 id=\"header-7\"\u003eClosing thoughts\u003c/h2\u003e\u003cp data-block-id=\"5397cb2b-461b-41a6-8240-f3e54762a62d\"\u003eHash functions and public-key cryptography are at the core of digital signature systems, which are now applied to a wide range of use cases. If properly implemented, digital signatures can increase security, ensure integrity, and facilitate the authentication of all kinds of digital data.\u003c/p\u003e\u003cp data-block-id=\"e140557b-c533-4e49-a0f7-143cca6612e3\"\u003eIn the blockchain realm, digital signatures are used to sign and authorize cryptocurrency transactions. They are particularly important for Bitcoin because the signatures ensure that coins can only be spent by the individuals that possess the corresponding private keys.\u003c/p\u003e\u003cp data-block-id=\"376cffce-b8b4-42b0-b44d-419fcd248170\"\u003eAlthough we’ve been using both electronic and digital signatures for years, there is still a lot of room for growth. A great portion of today’s bureaucracy is still based on paperwork, but we will likely see more adoption of digital signature schemes as we migrate to a more digitalized system.\u003c/p\u003e","content_json":"{\"layout\":{\"root\":[\"ViewInstance0\"],\"ViewInstance0\":[\"a23b22e0-e322-40a9-9a66-1a70c79d38fe\",\"e5892c63-746e-49a4-b9c1-ce6c30c3b122\",\"bc63b959-8aa4-435c-aa5c-0bd02712d692\",\"b688767b-82eb-4303-a0d3-903a763a9b94\",\"61265e3b-96a3-48f3-bac7-0d00ec33c3f0\",\"ef3d125e-1003-4e1e-b3ee-f45e2bd2df5e\",\"92b90774-6772-4eb6-95ce-7b98df12bb28\",\"948196c4-480c-4f56-b56b-7c36e44f9b33\",\"88afb7f0-ad10-470e-84c2-1ac1e9ac4286\",\"76c324fb-790c-4872-8afa-dd9c0ee6edcd\",\"0e506402-1105-4e04-856d-1d811085ff51\",\"efb17fb3-4aee-4338-80c1-9d75189a83d2\",\"2b1b4518-8c78-401d-af0a-e1b5f741c588\",\"93f7be4b-1a6a-45a3-b48d-58fcc6cc4c35\",\"fcd5c0bd-554c-4aea-86ad-11b3f39d1072\",\"24d2844c-73ba-4f64-ba24-c1d5f1a5e380\",\"6f538eb5-1489-4fe2-96b5-c800fa6bda7f\",\"1a50d12f-0848-40dd-86f3-d512010aa2ec\",\"98ffa281-197b-496f-baa8-97df2326d386\",\"97bd4902-54cc-4295-9672-e674c0a13790\",\"adcd492e-b8e9-4ec8-a510-c0882f35f6fe\",\"7c8532a2-bc01-4821-8628-d946f18c55af\",\"3ae98e4d-d1c1-4a6e-b054-fd483df1d952\",\"071f7d84-478a-4f53-b9a0-91c79b003a86\",\"a869ea7b-9d35-4f13-ab0b-39243be548e2\",\"1dec3c09-11f0-4545-9575-3cdff5dfc75e\",\"de3c3e42-00a9-453d-9a16-0913e9670252\",\"a194e45b-2bd6-42fa-bd36-9d77f3cf22e9\",\"f616ac8d-b056-49e1-815e-7a76dd66b98f\",\"20c428cf-eac8-4272-bfff-fb4b449e4286\",\"69b39126-094a-49fb-a0ad-7eec28d0dac6\",\"bb1f6659-f212-4b60-830d-46d6bdd7d74b\",\"8fcd3601-7eed-4e87-94a6-e29f35615dda\",\"91836235-7803-49df-8fba-125749d68d4d\",\"45c5545f-457c-42f5-8e26-e7b6a5491a29\",\"2d023819-2938-42bb-8f20-c0a472b35f49\",\"a145335b-6a51-4d50-bec7-b9f7a30e140c\",\"30371acf-0c09-472b-9453-d47bf8abf8f0\",\"f41618fe-faaa-48fe-b46c-de63b54a0dc7\",\"c177da61-8986-41d4-ab55-d69e41a1e646\",\"ccbf9f38-88b6-45b5-871f-7675eb4c2f53\",\"f075d20e-135c-4484-b047-343382dfbe84\",\"fc577bc5-0396-46e9-9ce3-7b8bee960ea2\",\"e4dd10b0-f20f-4233-b03c-b7b6eda753fc\",\"21af8765-f92b-4a84-a09b-af7ab9287871\",\"5397cb2b-461b-41a6-8240-f3e54762a62d\",\"e140557b-c533-4e49-a0f7-143cca6612e3\",\"376cffce-b8b4-42b0-b44d-419fcd248170\"]},\"hash\":{\"ViewInstance0\":{\"id\":\"Fragment\"},\"a23b22e0-e322-40a9-9a66-1a70c79d38fe\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"A digital signature is a cryptographic mechanism used to verify the authenticity and integrity of digital data. We may consider it as a digital version of the ordinary handwritten signatures, but with higher levels of complexity and security.\",\"style\":{}}}],\"style\":{}}},\"e5892c63-746e-49a4-b9c1-ce6c30c3b122\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"In simple terms, we may describe a digital signature as a code that is attached to a message or document. After generated, the code acts as proof that the message hasn’t been tampered with along its way from sender to receiver.\",\"style\":{}}}],\"style\":{}}},\"bc63b959-8aa4-435c-aa5c-0bd02712d692\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Although the concept of securing communications using cryptography \",\"style\":{}}},{\"id\":\"RichTextLink\",\"config\":{\"href\":\"https://academy.binance.com/en/articles/history-of-cryptography\",\"target\":\"_blank\",\"content\":\"dates back to ancient times\",\"customEvents\":{}}},{\"id\":\"RichTextText\",\"config\":{\"content\":\", digital signature schemes became a possible reality in the 1970s - thanks to the development of \",\"style\":{}}},{\"id\":\"RichTextLink\",\"config\":{\"href\":\"https://academy.binance.com/en/articles/what-is-public-key-cryptography\",\"target\":\"_blank\",\"content\":\"Public-Key Cryptography (PKC)\",\"customEvents\":{}}},{\"id\":\"RichTextText\",\"config\":{\"content\":\". So, to learn how digital signatures work, we need to first understand the basics of hash functions and public-key cryptography.\",\"style\":{}}}],\"style\":{}}},\"b688767b-82eb-4303-a0d3-903a763a9b94\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextHardBreak\"}],\"style\":{}}},\"61265e3b-96a3-48f3-bac7-0d00ec33c3f0\":{\"id\":\"RichTextHeader\",\"config\":{\"tag\":\"h2\",\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Hash functions\",\"style\":{}}}]}},\"ef3d125e-1003-4e1e-b3ee-f45e2bd2df5e\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextLink\",\"config\":{\"href\":\"https://academy.binance.com/en/articles/what-is-hashing\",\"target\":\"_blank\",\"content\":\"Hashing\",\"customEvents\":{}}},{\"id\":\"RichTextText\",\"config\":{\"content\":\" is one of the core elements of a digital signature system. The process of hashing involves transforming data of any size into a fixed-size output. This is done by a special kind of algorithms known as hash functions. The output generated by a hash function is known as a hash value or message digest.\",\"style\":{}}}],\"style\":{}}},\"92b90774-6772-4eb6-95ce-7b98df12bb28\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"When combined with \",\"style\":{}}},{\"id\":\"RichTextLink\",\"config\":{\"href\":\"https://academy.binance.com/en/glossary/cryptography\",\"target\":\"_blank\",\"content\":\"cryptography\",\"customEvents\":{}}},{\"id\":\"RichTextText\",\"config\":{\"content\":\", the so-called cryptographic hash functions can be used to generate a hash value (digest) that acts as a unique digital fingerprint. This means that any change in the input data (message) would result in a completely different output (hash value). And that’s the reason cryptographic hash functions are widely used for verifying the authenticity of digital data.\",\"style\":{}}}],\"style\":{}}},\"948196c4-480c-4f56-b56b-7c36e44f9b33\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextHardBreak\"}],\"style\":{}}},\"88afb7f0-ad10-470e-84c2-1ac1e9ac4286\":{\"id\":\"RichTextHeader\",\"config\":{\"tag\":\"h2\",\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Public-key cryptography (PKC)\",\"style\":{}}}]}},\"76c324fb-790c-4872-8afa-dd9c0ee6edcd\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Public-key cryptography, or PKC, refers to a cryptographic system that makes use of a pair of keys: one public key and one private key. The two keys are mathematically related and can be used for both data encryption and digital signatures.\",\"style\":{}}}],\"style\":{}}},\"0e506402-1105-4e04-856d-1d811085ff51\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"As an encryption tool, PKC is more secure than the more rudimentary methods of \",\"style\":{}}},{\"id\":\"RichTextLink\",\"config\":{\"href\":\"https://academy.binance.com/en/articles/what-is-symmetric-key-cryptography\",\"target\":\"_blank\",\"content\":\"symmetric encryption\",\"customEvents\":{}}},{\"id\":\"RichTextText\",\"config\":{\"content\":\". While older systems rely on the same key to encrypt and decrypt information, PKC allows for data \",\"style\":{}}},{\"id\":\"RichTextLink\",\"config\":{\"href\":\"https://academy.binance.com/en/glossary/encryption\",\"target\":\"_blank\",\"content\":\"encryption\",\"customEvents\":{}}},{\"id\":\"RichTextText\",\"config\":{\"content\":\" with the public key and data decryption with its corresponding private key.\",\"style\":{}}}],\"style\":{}}},\"efb17fb3-4aee-4338-80c1-9d75189a83d2\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Other than that, the PKC scheme may also be applied in the generation of digital signatures. In essence, the process consists of hashing a message (or digital data) along with the signer’s private key. Next, the recipient of the message can check if the signature is valid by using the public key provided by the signer.\",\"style\":{}}}],\"style\":{}}},\"2b1b4518-8c78-401d-af0a-e1b5f741c588\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"In some situations, digital signatures may involve encryption, but that isn’t always the case. For instance, the \",\"style\":{}}},{\"id\":\"RichTextLink\",\"config\":{\"href\":\"https://academy.binance.com/en/articles/what-is-bitcoin\",\"target\":\"_blank\",\"content\":\"Bitcoin\",\"customEvents\":{}}},{\"id\":\"RichTextText\",\"config\":{\"content\":\" blockchain makes use of PKC and digital signatures, but unlike many tend to believe, there is no encryption in the process. Technically, Bitcoin deploys the so-called Elliptic Curve Digital Signature Algorithm (ECDSA) to authenticate transactions.\",\"style\":{}}}],\"style\":{}}},\"93f7be4b-1a6a-45a3-b48d-58fcc6cc4c35\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextHardBreak\"}],\"style\":{}}},\"fcd5c0bd-554c-4aea-86ad-11b3f39d1072\":{\"id\":\"RichTextHeader\",\"config\":{\"tag\":\"h2\",\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"How digital signatures work\",\"style\":{}}}]}},\"24d2844c-73ba-4f64-ba24-c1d5f1a5e380\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"In the context of cryptocurrencies, a digital signature system often consists of three basic steps: hashing, signing, and verifying.\",\"style\":{}}}],\"style\":{}}},\"6f538eb5-1489-4fe2-96b5-c800fa6bda7f\":{\"id\":\"RichTextHeader\",\"config\":{\"tag\":\"h3\",\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Hashing the data\",\"style\":{}}}]}},\"1a50d12f-0848-40dd-86f3-d512010aa2ec\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"The first step is to hash the message or digital data. This is done by submitting the data through a \",\"style\":{}}},{\"id\":\"RichTextLink\",\"config\":{\"href\":\"https://academy.binance.com/en/articles/what-is-hashing\",\"target\":\"_blank\",\"content\":\"hashing\",\"customEvents\":{}}},{\"id\":\"RichTextText\",\"config\":{\"content\":\" algorithm so that a hash value is generated (i.e., the message digest). As mentioned, the messages can vary significantly in size, but when they are hashed, all their hash values have the same length. This is the most basic property of a hash function.\",\"style\":{}}}],\"style\":{}}},\"98ffa281-197b-496f-baa8-97df2326d386\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"However, hashing the data is not a must for producing a digital signature because one can use a private key to sign a message that wasn’t hashed at all. But for cryptocurrencies, the data is always hashed because dealing with fixed-length digests facilitates the whole process.\",\"style\":{}}}],\"style\":{}}},\"97bd4902-54cc-4295-9672-e674c0a13790\":{\"id\":\"RichTextHeader\",\"config\":{\"tag\":\"h3\",\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Signing\",\"style\":{}}}]}},\"adcd492e-b8e9-4ec8-a510-c0882f35f6fe\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"After the information is hashed, the sender of the message needs to sign it. This is the moment where public-key cryptography comes into play. There are several types of digital signature algorithms, each with its own particular mechanism. But essentially, the hashed message will be signed with a private key, and the receiver of the message can then check its validity by using the corresponding public key (provided by the signer).\",\"style\":{}}}],\"style\":{}}},\"7c8532a2-bc01-4821-8628-d946f18c55af\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Put in another way, if the private key is not included when the signature is generated, the receiver of the message won’t be able to use the corresponding public key to verify its validity. Both public and private keys are generated by the sender of the message, but only the public key is shared with the receiver.\",\"style\":{}}}],\"style\":{}}},\"3ae98e4d-d1c1-4a6e-b054-fd483df1d952\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"It’s worth noting that digital signatures are directly related to the content of each message. So unlike handwritten signatures, that tend to be the same regardless of the message, each digitally signed message will have a different digital signature.\",\"style\":{}}}],\"style\":{}}},\"071f7d84-478a-4f53-b9a0-91c79b003a86\":{\"id\":\"RichTextHeader\",\"config\":{\"tag\":\"h3\",\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Verifying\",\"style\":{}}}]}},\"a869ea7b-9d35-4f13-ab0b-39243be548e2\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Let’s take an example to illustrate the whole process until the final step of verification. Imagine that Alice writes a message to Bob, hashes it, and then combines the hash value with her private key to generate a digital signature. The signature will work as a unique digital fingerprint of that particular message.\",\"style\":{}}}],\"style\":{}}},\"1dec3c09-11f0-4545-9575-3cdff5dfc75e\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"When Bob receives the message, he can check the validity of the digital signature by using the public key provided by Alice. This way, Bob can be sure that the signature was created by Alice because only she has the private key that corresponds to that public key (at least that’s what we expect).\",\"style\":{}}}],\"style\":{}}},\"de3c3e42-00a9-453d-9a16-0913e9670252\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"So, it’s crucial for Alice to keep her private key in secret. If another person gets their hands on Alice’s private key, they can create digital signatures and pretend to be Alice. In the context of Bitcoin, this means someone could use Alice’s private key to move or spend her Bitcoins without her permission.\",\"style\":{}}}],\"style\":{}}},\"a194e45b-2bd6-42fa-bd36-9d77f3cf22e9\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextHardBreak\"}],\"style\":{}}},\"f616ac8d-b056-49e1-815e-7a76dd66b98f\":{\"id\":\"RichTextHeader\",\"config\":{\"tag\":\"h2\",\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Why are digital signatures important?\",\"style\":{}}}]}},\"20c428cf-eac8-4272-bfff-fb4b449e4286\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Digital signatures are often used to achieve three results: data integrity, authentication, and non-repudiation.\",\"style\":{}}}],\"style\":{}}},\"69b39126-094a-49fb-a0ad-7eec28d0dac6\":{\"id\":\"RichTextList\",\"config\":{\"listType\":\"unordered\",\"content\":[{\"id\":\"RichTextListItem\",\"config\":{\"content\":[{\"id\":\"RichTextParagraph\",\"key\":null,\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Data integrity. Bob can verify that Alice’s message wasn’t changed along its way. Any modification in the message would produce a completely different signature.\",\"style\":{}}}],\"style\":{}}}]}},{\"id\":\"RichTextListItem\",\"config\":{\"content\":[{\"id\":\"RichTextParagraph\",\"key\":null,\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Authenticity. As long as Alice’s private key is kept in secret, Bob can use her public key to confirm that the digital signatures were created by Alice and no one else.\",\"style\":{}}}],\"style\":{}}}]}},{\"id\":\"RichTextListItem\",\"config\":{\"content\":[{\"id\":\"RichTextParagraph\",\"key\":null,\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Non-repudiation. Once the signature has been generated, Alice won’t be able to deny having signed it in the future, unless her private key gets somehow compromised.\",\"style\":{}}}],\"style\":{}}}]}}]}},\"bb1f6659-f212-4b60-830d-46d6bdd7d74b\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextHardBreak\"}],\"style\":{}}},\"8fcd3601-7eed-4e87-94a6-e29f35615dda\":{\"id\":\"RichTextHeader\",\"config\":{\"tag\":\"h2\",\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Use cases\",\"style\":{}}}]}},\"91836235-7803-49df-8fba-125749d68d4d\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Digital signatures can be applied to various kinds of digital documents and certificates. As such, they have several applications. Some of the most common use cases include:  \",\"style\":{}}}],\"style\":{}}},\"45c5545f-457c-42f5-8e26-e7b6a5491a29\":{\"id\":\"RichTextList\",\"config\":{\"listType\":\"unordered\",\"content\":[{\"id\":\"RichTextListItem\",\"config\":{\"content\":[{\"id\":\"RichTextParagraph\",\"key\":null,\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Information Technology. To enhance the security of Internet communication systems.\",\"style\":{}}}],\"style\":{}}}]}},{\"id\":\"RichTextListItem\",\"config\":{\"content\":[{\"id\":\"RichTextParagraph\",\"key\":null,\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Finance. Digital signatures can be implemented to audits, expense reports, loan agreements, and much more.\",\"style\":{}}}],\"style\":{}}}]}},{\"id\":\"RichTextListItem\",\"config\":{\"content\":[{\"id\":\"RichTextParagraph\",\"key\":null,\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Legal. Digital signing of all sorts of business contracts and legal agreements, including governmental papers.\",\"style\":{}}}],\"style\":{}}}]}},{\"id\":\"RichTextListItem\",\"config\":{\"content\":[{\"id\":\"RichTextParagraph\",\"key\":null,\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Healthcare. Digital signatures can prevent fraud of prescriptions and medical records.\",\"style\":{}}}],\"style\":{}}}]}},{\"id\":\"RichTextListItem\",\"config\":{\"content\":[{\"id\":\"RichTextParagraph\",\"key\":null,\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Blockchain. Digital signature schemes ensure that only the rightful owners of the cryptocurrencies are able to sign a transaction to move the funds (as long as their private keys aren’t compromised).\",\"style\":{}}}],\"style\":{}}}]}}]}},\"2d023819-2938-42bb-8f20-c0a472b35f49\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextHardBreak\"}],\"style\":{}}},\"a145335b-6a51-4d50-bec7-b9f7a30e140c\":{\"id\":\"RichTextHeader\",\"config\":{\"tag\":\"h2\",\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Limitations\",\"style\":{}}}]}},\"30371acf-0c09-472b-9453-d47bf8abf8f0\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"The major challenges faced by digital signature schemes rely on at least three requirements: \",\"style\":{}}}],\"style\":{}}},\"f41618fe-faaa-48fe-b46c-de63b54a0dc7\":{\"id\":\"RichTextList\",\"config\":{\"listType\":\"unordered\",\"content\":[{\"id\":\"RichTextListItem\",\"config\":{\"content\":[{\"id\":\"RichTextParagraph\",\"key\":null,\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Algorithm. The quality of the algorithms used in a digital signature scheme is important. This includes the choice of reliable \",\"style\":{}}},{\"id\":\"RichTextLink\",\"config\":{\"href\":\"https://academy.binance.com/en/articles/what-is-hashing\",\"target\":\"_blank\",\"content\":\"hash functions\",\"customEvents\":{}}},{\"id\":\"RichTextText\",\"config\":{\"content\":\" and cryptographic systems.\",\"style\":{}}}],\"style\":{}}}]}},{\"id\":\"RichTextListItem\",\"config\":{\"content\":[{\"id\":\"RichTextParagraph\",\"key\":null,\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Implementation. If the algorithms are good, but the implementation is not, the digital signature system will likely present flaws.\",\"style\":{}}}],\"style\":{}}}]}},{\"id\":\"RichTextListItem\",\"config\":{\"content\":[{\"id\":\"RichTextParagraph\",\"key\":null,\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Private Key. If the private keys get leaked or somehow compromised, the properties of authenticity and non-repudiation will be invalidated. For cryptocurrency users, losing a private key may result in significant financial losses.\",\"style\":{}}}],\"style\":{}}}]}}]}},\"c177da61-8986-41d4-ab55-d69e41a1e646\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextHardBreak\"}],\"style\":{}}},\"ccbf9f38-88b6-45b5-871f-7675eb4c2f53\":{\"id\":\"RichTextHeader\",\"config\":{\"tag\":\"h2\",\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Electronic signatures vs. digital signatures\",\"style\":{}}}]}},\"f075d20e-135c-4484-b047-343382dfbe84\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Simply put, digital signatures relate to one particular kind of electronic signatures - which refer to any electronic method of signing documents and messages. Thus, all digital signatures are electronic signatures, but the opposite isn’t always true.\",\"style\":{}}}],\"style\":{}}},\"fc577bc5-0396-46e9-9ce3-7b8bee960ea2\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"The main difference between them is the authentication method. Digital signatures deploy cryptographic systems, such as hash functions, \",\"style\":{}}},{\"id\":\"RichTextLink\",\"config\":{\"href\":\"https://academy.binance.com/en/articles/what-is-public-key-cryptography\",\"target\":\"_blank\",\"content\":\"public-key cryptography\",\"customEvents\":{}}},{\"id\":\"RichTextText\",\"config\":{\"content\":\", and encryption techniques.\",\"style\":{}}}],\"style\":{}}},\"e4dd10b0-f20f-4233-b03c-b7b6eda753fc\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextHardBreak\"}],\"style\":{}}},\"21af8765-f92b-4a84-a09b-af7ab9287871\":{\"id\":\"RichTextHeader\",\"config\":{\"tag\":\"h2\",\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Closing thoughts\",\"style\":{}}}]}},\"5397cb2b-461b-41a6-8240-f3e54762a62d\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Hash functions and public-key cryptography are at the core of digital signature systems, which are now applied to a wide range of use cases. If properly implemented, digital signatures can increase security, ensure integrity, and facilitate the authentication of all kinds of digital data.\",\"style\":{}}}],\"style\":{}}},\"e140557b-c533-4e49-a0f7-143cca6612e3\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"In the blockchain realm, digital signatures are used to sign and authorize cryptocurrency transactions. They are particularly important for Bitcoin because the signatures ensure that coins can only be spent by the individuals that possess the corresponding private keys.\",\"style\":{}}}],\"style\":{}}},\"376cffce-b8b4-42b0-b44d-419fcd248170\":{\"id\":\"RichTextParagraph\",\"config\":{\"content\":[{\"id\":\"RichTextText\",\"config\":{\"content\":\"Although we’ve been using both electronic and digital signatures for years, there is still a lot of room for growth. A great portion of today’s bureaucracy is still based on paperwork, but we will likely see more adoption of digital signature schemes as we migrate to a more digitalized system.\",\"style\":{}}}],\"style\":{}}}}}","author":"Binance Academy","language":"en","created_at":"2019-08-19T08:12:04.000Z","updated_at":"2023-01-31T16:46:42.000Z","reading_time":376500,"related":[{"id":32,"title":"What Is a 51% Attack?","slug":"what-is-a-51-percent-attack","video":"https://fast.wistia.net/embed/iframe/eilotvhp47","image":{"original":"uploads-original/91791d8c1e594f9a92f421aa7e07720c.png","optimized":"uploads/91791d8c1e594f9a92f421aa7e07720c.png","thumbnail":"uploads-thumbnails/91791d8c1e594f9a92f421aa7e07720c.png"},"language":"en","created_at":"2018-11-28T00:00:00.000Z","updated_at":"2023-04-20T07:48:34.000Z","reading_time":249749,"translations":[],"categories":[]},{"id":1300,"title":"What Is Symmetric Key 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