DIGITAL SIGNATURES, VERACITY IN THE DIGITAL ERA
 

DIGITAL SIGNATURES, VERACITY IN THE DIGITAL ERA


As we are permanent users of digital platforms for all kinds of actions, whether it’s making purchases, managing documents or keeping track of our finances, ensuring the integrity of these functions and securing them is extremely important. To fulfill this mission, there are digital signatures and at Empirex Capital we want to explain you what they are, how they work at a technical level and where they are used.

Contrary to what we may think at first, it is not the digitized image of our physical signature, but a cryptographic mechanism that associates the identity of a person to a message or document. Digital signatures are the result of applying a mathematical algorithm, called 'Hash Function', to its content; after being generated, this code works as proof that the message has not been manipulated during the process to get from the sender to the receiver.

In combination with cryptography, cryptographic hash functions can be used to generate a hash value (digest) that functions as a unique fingerprint. This means that any change in the input data (message) will result in a completely different output (hash value). And this is why cryptographic hash functions are widely used to verify the authenticity of digital data.

In addition to hash functions, digital signatures implement systems such as public key cryptography, which is used by a sender to encrypt the information, while the private key is used by the receiver to decrypt it. The public key can be shared securely without compromising the security of the private key. Each key pair is unique, ensuring that a message encrypted with a public key can only be read by the person who holds the corresponding private key.

The main purpose of digital signatures is to protect the integrity of data, its authentication and that there is no way for a sender to deny this signature.

Applications:

Finance:

they can be implemented in audits, expense reports and loan agreements.

Blockchain:

here, digital signature schemes ensure that only legitimate owners of cryptocurrencies can sign a transaction to move funds.

Information technologies:

these are used to improve the security of communication systems carried out through the internet.

The greatest virtue of these signatures is that their impact can be both in the workplace and in the personal sphere. Among its main benefits are the legal validity, the security it provides for different procedures and that it avoids the risk of forgery.

Remember that with these signatures it is important that the person or organization that signs must be trusted by the recipient and that the certificate associated with the digital signature is valid.

The digital transformation and the use of the Internet for many business and day-to-day processes have made digital signatures an indispensable tool for companies and individuals, as it is common to sign documents remotely or through digital platforms. Now that you know what they are and how they can help you with the security of your documents, would you dare to use them?

Created on 17th Jun 2022

Comments