A digital signature is a technology that confirms the authenticity of a document. Digital signatures require a digital certificate from a certificate authority to verify the identity of the user. The certificate is bound to the signed document using cryptography, creating a unique digital fingerprint.
A digital signature guarantees the authenticity of an electronic document. This is an encrypted digital code added to an electronic document to verify that it was created by a known source and has not been modified.
Digital signatures also include a public key infrastructure (PKI) in the signing process. PKI generates two keys – public and private – to identify the signer and the object requesting the signature. Both the digital certificate and the PKI ensure strict identification and security of confidential legal documents.
The difference between an electronic and a digital signature
Electronic signatures are a wide range of solutions that use an electronic process to accept a document or transaction with a signature. As documents and communications increasingly become paperless, companies and consumers around the world have appreciated the speed and convenience of these types of signatures. But there are many different types of electronic signatures, each of which allows users to digitally sign documents and offers a certain degree of identity authentication.
Digital signatures are one of those electronic signature technologies that are the most secure of the available types. Digital signatures use PKI certificates from a certificate authority, such as a trust service provider, to ensure identity authentication and document integrity by encrypting the signature to the document. Other, less secure types of electronic signatures may use conventional electronic authentication methods to verify the identity of the signatory, such as an email address, corporate username/ID, or phone number/PIN.
As a result of different technical and security requirements, electronic signatures differ in industry, geographical and legal recognition. Digital signatures comply with the strictest regulatory requirements.
How do digital signatures work?
Cryptographic digital signatures use asymmetric encryption keys, i.e. public keys and their corresponding private keys (so-called secret keys). The private key is used to create a digital signature (in other words, to "sign"), and the public encryption key is used to verify the digital signature. What makes this work is the fact that a public and private key pair are so closely related to each other that it would be almost impossible for a public key to authenticate a signature generated by a private key that it is not associated with.
Creating a digital signature
A digital signature is created using hash algorithms or algorithm schemes such as DSA and RSA, which use public and private key encryption. The sender uses the private key to sign the message digest (not the data), and when he does, he forms a digital fingerprint to send the data.
It is important to note here that all the tools used to digitally sign a document are numeric in nature. Digital signature solutions use cryptographic algorithms to convert a signed document and a private key into a new set of encrypted characters.
When a signed document is authenticated using a public key, the signing party knows who created it and whether the document was modified after the digital signature. The decryption process returns the original hashed document, and it can be compared with the encrypted hash to determine the authenticity of the document and the digital signature.
To verify the identity of the signatory and the digital signature, a DSC or Digital Signature Certificate is issued. DSC is a secure digital public key that performs all decryption and certifies the identity of the owner. To understand what a DSC is and why you need it, we will delve into the details later in this article.
The basic process here is far from simple, and creating a digital signature requires several carefully designed algorithms for encrypting, decrypting and authenticating messages and data.
The importance of using digital signatures
As more and more business is done online, commitments and transactions that were previously recorded on paper and transmitted physically are gradually being replaced by digital documents and procedures. When exchanging valuable or confidential data, there are often intruders who seek to steal or use them to their advantage. Businesses should be able to verify and authenticate that these important business documents, data, and interactions are trusted and delivered confidentially to reduce the risk of documents being manipulated by hostile parties.
Digital signatures protect private information without impeding the efficiency of electronic document workflows; unlike traditional procedures, they often improve document management. The use of digital signatures makes the process of signing documents simple and accessible from any computer or mobile device. In addition, since the checksum is included in the file, it can be used on any device or in any place where information is transmitted. Digitally signed documents are also easy to adjust and track, as they provide the status of all documents, allow you to see if they have been signed, and provide a control log.
Advantages of digital signatures
A digital signature can work in the same way as a traditional paper signature, offering verification of the signer's identity. Digital signature offers the following advantages:
Enhanced security: Digital signatures contain "fingerprint" type data that is unique and permanently embedded in the document. The encoded message contained in the digital signature can identify and verify the signatory and link it to a specific recorded document. PKI encryption verification technology is considered one of the most secure and verifiable identity authentication standards.
Independent verification and Integrity: Reputable companies providing digital signatures can support independent verification methods. The integrity of the message is guaranteed because the digital signature cannot be changed by a third party.
Compliance with the law and wide recognition. Digital signatures are recognized worldwide as legally binding. Laws such as the «Law on Electronic Signatures in Global and National Trade» regulate companies providing digital signatures, as well as confirm their legal status.
Speed and efficiency: Electronic document signing can be done easily and quickly, saving time and money needed for personal document signing and manual data entry. This can reduce the cost of the transaction and make it more user-friendly.
High Standard: PKI is highly valued and certification authorities are strictly regulated, which increases public trust and can guarantee the integrity of messages, verification of identification and authenticity.