What is a 'Digital Signature' ? How is it used and verified ?
A 'Digital Signature' is a cryptographic technique used to verify the authenticity and integrity of a digital message or document. In the context of electronic banking and IT in banks, digital signatures play a crucial role in ensuring secure and trustworthy online transactions. They provide a way to verify the identity of the sender, confirm the integrity of the transmitted data, and prevent unauthorized alterations.
Here's how a digital signature works:
### Generation of Digital Signature:
1. Hash Function: The process begins with a hash function, which takes the original message or document and generates a fixed-size string of characters, known as a hash value. The hash function ensures that even a slight change in the original content results in a significantly different hash value.
2. Private Key: The sender uses their private key, a unique and secret cryptographic key, to encrypt the hash value. This encrypted hash value is the digital signature. The private key is kept confidential and is known only to the sender.
### Verification of Digital Signature:
1. Public Key: The recipient uses the sender's public key, which is widely available, to decrypt the digital signature, revealing the
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