Traditionally singing documents is now a thing of the past with commercial and even government-related documents being prepared to accept signatures in digital formats. This is ever so essential and relevant after the 2 critical years of physical non-presence.
Blockchain-powered Digital Signatures
Digital signatures have been enhanced in terms of security by the advent of new technologies such as Blockchain. And since the past few years, federal law has come to recognize e-signatures. Blockchain facilitated digital signature helps secure your digital identity over the web making it valid as well authenticated.
Documents stored on Blockchain are secured in digital code and then saved in transparent, distributed databases protected against tampering, alteration, and deletion. With this now individuals and organizations can freely make transactions and interact. At the same time, they may capitalize on the immense potential of Blockchain technology for digital signatures.
The scope for utilization of content decentralization, and distribution, is vast. Blockchain document signing will eliminate fraudulence, the likes of fake certificates, degrees, and photoshopped signatures.
Individuals will own their digital identity and records by having a single, verifiable and immutable record created. Digital Signature may be applied to documents such as medical records, educational, residential, and licenses. All these certificates along with their metadata can be issued and signed by Blockchain-based digital signatures.
In matters of financial transactions, digital signatures are used on documents. Digital signatures are now legal in countries such as the USA, India, Brazil, Indonesia, Saudi Arabia, Switzerland, Mexico, and some others.
Also Read: Democratization of Digital Signatures Applying Blockchain Technology
How Digital Signatures Work
Blockchain creates a hash of the data. Hash is a digest of data with numerical codes used to identify pieces of information. The hash codes can be verified by comparing the same with the hash number in another document. A match between codes on the document indicates that the document is indeed authentic. This further allows you to proceed with the transaction securely. When the hash code is generated, it sends the data and the digital signature to the assigned person. The receiver, next, enters the sender’s public key, and the digital signature is fed into the algorithm. This process creates the hash number code.
Finally, as explained above, the receiver checks for the document’s validity. This is achieved by checking the hash code of the original document and matching it with their hash code. Should both hash number codes appear identical, it can be considered a valid signature; otherwise, it is considered a fake or invalid signature.
Also Read: Impact of Blockchain Technology on Corporate Treasuries
Benefits of Blockchain Digital Signature
Digital signatures are by far the most secure way to attain the highest level of data security owing to the involvement of cryptography. Over and above the hash value, the receiver confirms the message authentication by approving the digital signature with the generated public key of the sender. This in turn verifies the identity of the person they are encoded in the signature.
Secondly, Blockchain-based Digital Signatures allow the critical advantage of saving and transferring information in Blockchain, guaranteeing integrity. In the absence of Blockchain, the data can be altered without even being entirely hacked. Should this happen in a Blockchain-powered database, the signature will be invalidated by default. Therefore, the encrypted digital signature is safe and can’t be tampered with without affecting the entire chain. This is several times more expensive than the return from the hacking.
Alongside providing message authentication and data integrity, blockchain-based digital signatures also facilitate non-repudiation messages. Since it is considered that the sender associates with the signature key, the receiver may also present the data and digital signature as evidence should any dispute arise.
From the above, it may be safely inferred that blockchain offers the most robust and secure platform to digitize signatures against an identity. This assures absolute authenticity when measured against other e-signatures which can be easily violated.