Blockchain and Cryptocurrency Advanced - Blockchain CryptoGraphy: About Digital Signatures CryptoGraphy

Digital Signatures is also one of the popular terms when it comes to blockchain cryptography. It is one of the core foundation of security in blockchain technology. Digital Signatures are simply a type of proof system that establishes trust in a blockchain network.

Like the name digital signature, it basically means a digital stamp of authenticity that proofs that the sent message or data comes from a particular source and not from a malicious actor or hacker. This increases the security of transaction between sender and receiver and reduces the possibility of identity theft.

Digital Signatures is considered as a very secure type of cryptography as it proof the integrity and also the data cannot be altered and can be easily verified. Digital Signatures is used in blockchain technology to ensure that the data is valid, verified and is correct. Digital signatures makes it possible for a valid chain of blocks added to the blockchain.

Every data or transaction that is recorded on the blockchain has to go through digital signatures before a new block is securely added to the blockchain. Also, digital signature increases the security of the data that is stored on the blockchain.

Another clear application of digital signatures is in that of cryptocurrencies. It is used for the approval of cryptocurrency transactions on the blockchain network by securely signing the transactions. Also, it is used for digital wallets and multi-signature contracts. The way this works is that it follows a particular previous events of asymmetric cryptography by using a special mathematical links to link two different keys such as the public and private key.

Digital signatures has proven to be a very important aspect in blockchain technology as it helps secure transactions in the network. Digital signatures ensures the authenticity of the message or transaction comes from the original sender and not from a malicious actor or hacker. Also, with digital signatures, the receiver would be assured that the message or data received has not been tampered or altered by malicious actors, which increases trust in the blockchain network.