What Is Digital Signature?

Ensuring the validity and authenticity of information received is essential, and various validation methods have been introduced for this purpose. However, since we’ve shifted away from analog and moved toward a landscape dominated by digitalization, validation methods needed to advance, too. Digital signature has emerged as one of the most prominent solutions for this undertaking. In this article, we will discuss digital signatures and how vital this validation method is in the digital realm.

What is digital signature?

A digital signature is a validation method that uses mathematical algorithms and cryptographic techniques to ensure the validity and authenticity of a message, software, or document. It is comparable to handwritten signatures, stamps, or sealed wax. Digital signatures guarantee a tamper-evident confirmation of the origin and integrity of digital information. They have become an essential tool in the digital age to verify the legitimacy of information shared electronically.

What are the types of digital signatures?

These are the common types of digital signatures:

  • Public Key Infrastructure (PKI) signatures:

These are the most common types of digital signatures. This type uses a public key infrastructure, also known as a PKI, and it contains a public key and information about the signer’s identity.

  • Attribute-based signatures (ABS)

ABS signatures are a newer type of digital signature based on attributes. Attributes are information about the signer, such as their name, email address, and organization. ABS signatures allow the verifier to control what information about the signer is revealed.

How do digital signatures work?

Electronic documents need a secure lock to ensure they aren’t tampered with. This “lock” also guarantees that the electronic document came from a trusted source. Digital signatures act like that lock. Here’s how it works:

  • Hashing

A program called a hashing algorithm is used to run through electronic documents. The hashing program creates a unique “hash” of the document’s content. Any changes to the document would completely alter this hash, ensuring that tampering attempts are revealed.

  • Signing

The sender uses a private key to scramble this hash, creating the digital signature.

  • Sending

The signed document (with the scrambled hash) is sent to the one who’s going to receive the data.

  • Verifying

When the data is received, it’s going to be run through the same hashing algorithm to create a new hash. The sender’s public key will be used to unscramble the signature and get the original hash.

  • Confirmation

If both hashes (the newly created one and the unscrambled one) match, it confirms the document is authentic and hasn’t been tampered with. Any mismatch exposes tampering.

What are the applications of digital signatures?

Digital signatures have several use cases. Here are the most common:

  • Contracts

In the business world, contracts are the most prominent proof that something has been agreed upon. Electronically shared contracts can be certified using digital signatures, eliminating the need for tedious processes when signing documents like mailing a hard copy of a contract.

  • Financial transactions

Dealing with finances requires the utmost security. Digital signatures can alleviate the risks of tampering with financial data, ensuring that transactions in online banking, financial transfers, stock trading, and other financial services are secure and authentic.

  • Government services

Government and public services have been leveraging digital signatures for different purposes. This includes transactions such as e-filing taxes, permits, and other documents. Digital signatures also give the public better security when accessing government services online.

  • Healthcare

Digital signatures can also be used to sign medical records and other sensitive healthcare documents, allowing patients to maintain their medical privacy and data integrity.

  • Software distribution

Downloading software requires verifying its legitimacy and security. Software developers typically use digital signatures to sign the software installer or package. The user’s computer then verifies this signature using a certificate authority or the developer’s public key.

  • Remote work collaboration

Teams often share files and documents digitally. Since some of these assets may be confidential, they can use digital signatures to ensure they are only sent to authorized team members, preventing unauthorized modifications.

What are the advantages of digital signatures?

Digital signatures can benefit parties who are sharing or receiving information in several ways:

  • Security

The most obvious advantage of digital signatures is their ability to provide secure information exchange. Since digital signatures use mathematical algorithms, they make it hard for bad actors to commit fraud and forgery, especially on digitally signed documents.

  • Convenience and efficiency

Digital signatures eliminate the need for physical copies of documents, eliminating additional tasks such as printing, scanning, and mailing them. This can increase productivity and convenience for both parties sharing electronic information.

  • Non-repudiation

Digital signatures help keep records of who signed a document and when. This eliminates the possibility of denying an agreement through signature at a later time.

  • Cost saving and sustainability

Since digital signatures are electronic, they reduce the need to print documents using paper, promoting sustainability. Minimizing resource use also helps with cost reduction.


Digital signatures have contributed to maintaining safety and security in sharing information electronically. They ensure that shared files, documents, or other electronic assets reach their recipient untampered and verifiable. Implementing digital signatures fosters trust between the sharer and the receiver of information, guaranteeing the authenticity of the data and eliminating the possibility of forgery or denial.

Ready to become an IT Ninja?

Learn how NinjaOne can help you simplify IT operations.

Watch Demo×

See NinjaOne in action!

By submitting this form, I accept NinjaOne's privacy policy.

Start a Free Trial of the
#1 Endpoint Management Software on G2

No credit card required, full access to all features