What Are Digital Signatures & How Do They Work?

To verify the contents of a document, as also the sender’s identity, a digital code is generated and authenticated by public key encryption attached to an electronically transmitted document is a digital signature, a major benefit of public-key cryptography.

To ensure that an electronic document authenticates a digital signature is a way. By authentic, we mean you know who created the document and that it has not been altered because that person created it.

To ensure authentication, digital signatures depend on certain types of encryption. Taking the data that one computer sends to another and encoding it into a form that only the other computer can decode is the process called encryption. The information coming from a trusted source is verified by the process of authentication. These two processes work hand in hand for digital signatures. Digital signatures enable the recipient of information to verify the authenticity of the information’s origin, as also verify that the information is intact.

Authentication, data integrity, and non-repudiation are provided by the public key digital signatures. The purpose served is the same as a handwritten signature. Counterfeiting digital signatures is nearly impossible, although, in the case of handwritten signatures, it may be possible. Attesting to the contents of the information and to the identity of the signer is made possible by the digital signature.

How do Digital Signatures work?

Handwritten signatures are unique to each signer, and so are digital signatures. The protocol followed by digital signature solution provider DocuSign is PKI, which requires the provider to use an algorithm to generate two long numbers, called keys; one is public and the other is private.

The signature is created using the signer’s private key. The key is always kept securely by the signer when he/she electronically signs a document. A cipher creates data matching the signed document called a hash and encrypts that data using an algorithm. The digital signature is the result of encrypted data. The time that the document was signed is also marked with the signature. Any changes after signing the document make the digital signature invalidated.

The integrity of the signature needs to be protected and often requires the services of a certificate authority (CA). As per the requirement of PKI, the keys should be created, conducted, and saved in a secure manner.

The PKI requirement for safe digital signing is met by DocuSign, the digital signature provider.

Now let’s see where Digital Signatures are used.

Where are Digital Signatures used?

Digital signatures are used by the industry to streamline their processes and improve document integrity. Processing tax returns, verifying business to government transactions, ratifying laws, and managing contracts are the uses governments put digital signatures. Improving the efficiency of administrative processes and treatment and strengthening data security are the uses digital signature is put to in the healthcare industry. The uses the manufacturing sector puts digital signatures to are speeding up the processes, including product design, quality assurance, manufacturing enhancements, marketing, and sales. The Financial Services industry uses the digital signature for making and executing contracts, paperless banking, loan processing, insurance documentation, mortgages, and more.

Hope this was helpful.