Digital signatures are integral to how we use and interact with crypto. But how do they actually work? Time to find out 👇
If properly implemented, digital signatures can increase security, ensure integrity, and facilitate the authentication of all kinds of digital data.
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. 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.
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