How Digital Signatures Work? (2024)

The purpose of digital signatures is to establish a means to identify the authenticity of a document. For centuries, businesses and governments alike have used manual signatures to serve this purpose, due to the uniquely expressive nature of each person’s signature. In the case of digital signatures, the authenticity of a document is arguably even more reliable than manual signatures, because the signer is identified with a unique private key.

Digital signatures aren’t signatures in the traditional sense — there is no penmanship or personal information involved. Instead, digital signatures offer a mathematical verification process for the creator of a document or digital message.

The purpose of digital signatures is to confirm three types of verification: the identity of the signer, the origin of the document, and the status of the transaction. Using public key cryptography, digital signature software can provide all three pieces of information with a level of reliability that has come to be expected across many industries.

Public key cryptography refers to asymmetric cryptography, which involves two distinct keys that identify and decode a document. In asymmetric cryptography, one key is private, and one is public. When the public key matches the private key, the integrity of the data can be verified. This process of encryption uses a public key algorithm to create a key for the document recipient.

Once the algorithm has created a public key, the person “signing” the document will create a private key. This private key is used to encrypt the data that is being signed, and the private key is mutually authenticated with the public key. As a result of mutual authentication, the public key can decrypt data encrypted by the private key. Although a private key is more reliable than a traditional password, the security of dual-key authentication relies on the private key being kept private.

Because the private key is created in addition to the public key, the public key will be able to open the private key. This means that, if the digital signature is not authentic, the public key will not be able to decrypt the enclosed document.

How Do I Create a Digital Signature?

Creating a digital signature requires software to create mutually-authenticated private and public keys. The underlying operations of this software use a digital hash to establish one-way encryption, which allows the signer to create the private key. The hash is created by an algorithm, which generates a fixed-length key — this key serves as the basis for a digital signature. Although it is technically possible to encrypt each bit of data in a digital message, this hashing strategy is a more efficient way to encrypt data.

As you might expect, the public key is the only key that can decrypt the hash. With asymmetric authentication, even the slightest change to the hash from the document's creator will make the public key unable to decrypt the data. If the public key’s second hash does not correspond to the hash created by the sender, a security compromise has occurred — either the digital signature is inauthentic, or the data in the document has changed since it was encrypted. Either way, the public key is able to verify the authenticity and integrity of the document.

Types of Digital Signatures

Digital signatures are categorized by their security levels. With high-security digital signatures, more safeguards are enforced on the encryption and hashing process, making decryption and sending documents more complicated. Digital signatures are classified into three broad categories, known as Digital Signature Certificates: Class 1, Class 2, and Class 3.

Class 1 digital signatures provide only the most rudimentary security features. With Class 1, a document is authenticated based on the identification of the sender’s username and email address. While these pieces of information can serve as a type of low-security private key, Class 1 signatures shouldn’t be used for any highly sensitive documents.

Class 2 digital signatures make use of asymmetric cryptography to decrypt a document, and to identify the sender from a database of potential senders. This allows the receiver to understand whether the private key was created by an approved sender, and which member of the database sent it. These types of digital signatures are often used in business and government documents.

Class 3 digital signatures are the most secure type of digital signature. In Class 3 documents, the sender must use multi-factor identification to prove their identity — even before creating the digital signature. This means that Class 3 digital signatures establish an additional layer of authentication to ensure the private key has not fallen into the wrong hands.

Benefits of Digital Signatures

Digital signatures protect the security of documents by ensuring the integrity of their data, and by ensuring the authenticity of their sender. For sensitive data, the mathematical generation of asymmetric encryption is typically more secure than a simple password-protected digital document.

Aside from the major security benefits of digital signatures, there are other advantages of digital signatures that make them a worthwhile investment for businesses large and small. These benefits include:

  • Traceability: When the time for a security audit comes, businesses can trace the transaction history of documents using digital signatures. This can help you remain safe and compliant.
  • Timestamped data: Many businesses and government agencies need to identify the time of signing, and digital signatures allow recipients to authenticate a timestamp.
  • Legal recognition: Governments worldwide, including the United States government, recognize the legitimacy of digital signatures to determine the authenticity of a sender, making digital signatures the legal equivalent of a handwritten signature.
  • Low cost of operation: Once you’ve purchased digital signature software, upkeep and production are relatively easy. When you go digital, your business can eliminate the cost of paper, printing, and other components associated with handwritten documents.

The Difference Between Digital and Electronic Signatures

Electronic signatures (also known as e-signatures) are a common way to authenticate digital documents — but e-signatures aren’t always digital signatures.

An e-signature is an umbrella term for any authenticated, signed digital document. E-signatures require verification of the identity of the signer, the intentions of the signer, and the association between the secure online signature and the document. By this definition, even a signature signed with a computer mouse is an e-signature, as long as these authentication measures are verified.

E-signatures offer a broader range of criteria for authentication, while digital signatures inherently require asymmetric cryptography, with the recipient’s public key decrypting the sender’s private key.

So, organizations that require a secure electronic signature will also accept a secure digital signature.

SSH Secure Sign

At SSH Communications Security, Secure Sign offers high-security e-signatures with a user-friendly approach. As part of the broader SalaX Secure Collaboration 2024, Secure Sign is a secure e-communications platform that doesn’t just authenticate senders but provides a complete approach to managing your sensitive data.

Secure Sign allows you to apply a secure online e-signature that’s easy to use. You can use Secure Sign to encrypt your most sensitive data, and then track digital signatures to ensure a strong security protocol. User authentication allows you to verify signers and encrypt data to fit the standards of even the most secure industries and agencies.

In addition to cutting-edge digital signatures, SalaX Secure Collaboration includes features such as SalaX Secure Mail 2024, SalaX Secure Messaging 2024, Secure Forms, and Secure Rooms — all of which help to encrypt, authenticate, and manage your business data and communications. From legally-binding contracts to HR documents, financial data, and more, SSH offers reliable security software for your sensitive information.

Preventing data compromise and impersonation is essential for a secure business, and SalaX Secure Collaboration Suite has the applications to keep you protected.

Get a free demo today, and try out our e-communications suite for yourself.

How Digital Signatures Work? (1)

How Digital Signatures Work? (2024)

FAQs

How Digital Signatures Work? ›

A digital signature works by employing a set of algorithms to both create a unique signature and verify it.

How does the digital signature work? ›

Digital signatures work by proving that a digital message or document was not modified—intentionally or unintentionally—from the time it was signed. Digital signatures do this by generating a unique hash of the message or document and encrypting it using the sender's private key.

How does electronic signing work? ›

When a signer electronically signs a document, the signature is created using the signer's private key, which is always securely kept by the signer. The mathematical algorithm acts like a cipher, creating data matching the signed document, called a hash, and encrypting that data.

How does digital signature verification work? ›

Heightened security: Digital signatures contain “fingerprint”-type data that is unique and permanently embedded within the document. The coded message contained within the digital signature can identify and verify the signer and link them with the specific recorded document.

How does the digital signature algorithm work? ›

The algorithm uses a key pair consisting of a public key and a private key. The private key is used to generate a digital signature for a message, and such a signature can be verified by using the signer's corresponding public key.

How legally binding is a digital signature? ›

The Electronic Signatures in Global and National Commerce Act, otherwise known as the E-Sign Act, states that electronic signatures shouldn't be considered invalid simply because they're electronic. In other words, e-signatures are completely legal and binding. They can hold up in court.

How do I get my digital signature to work? ›

To add a digital signature, open your Microsoft Word document and click where you'd like to add your signature line. From the Word ribbon, select the Insert tab and then click Signature Line in the Text group. A Signature Setup pop-up box appears. Enter your information in the text fields and click OK.

What is the digital signing method? ›

Digital signatures employ asymmetric cryptography. In many instances, they provide a layer of validation and security to messages sent through a non-secure channel: Properly implemented, a digital signature gives the receiver reason to believe the message was sent by the claimed sender.

What are the rules for electronic signature? ›

Electronic signatures have to meet a few basic conditions to be in compliance with the ESIGN Act:
  • Intent to sign. E-signatures are valid only if both parties show clear intent to sign the document. ...
  • Consumer consent. ...
  • Signature attribution. ...
  • Audit trail. ...
  • Record retention and consumer disclosure.

What is the difference between digital signature and electronic signature? ›

An electronic signature can be a file, image, or symbol attached to a document to give consent for a signature. A digital signature is created via cryptographic algorithms. An electronic signature offers lower security and no cryptographic algorithms are used in creating a simple electronic signature.

How do you prove a digital signature? ›

The process of verification of digital signatures requires a digital signature certificate (DSC) issued by the Certifying Authority (CA) accompanied by their Certificate Revocation List (CRL) & the signer's public key.

How do I authenticate a digital signature? ›

5 Steps for Validating Digital Signatures In a PDF
  1. Open the digitally signed PDF that you need to validate using Power PDF.
  2. Locate the digital signature object within the document.
  3. Right click or command-click on the signature object.
  4. Select "Verify Signature" from the context menu.

How do I trust a digital signature? ›

  1. In the signature Properties window click Show Signers Certificate button. Following screen will be displayed once you click on it.
  2. Once you click on OK button, following window will be displayed. ...
  3. Click Ok button in the following window. ...
  4. Once the certificate validation is done, you will get the following approval.

What is the formula for digital signature? ›

To calculate the value of s, you use the formula s = [K-1(h+x . R)mod q]. It then packages the signature as {r,s}. The entire bundle of the message and signature {M,r,s} are sent to the receiver.

What is the key of a digital signature? ›

Digital signatures rely on asymmetric cryptography, also known as public key cryptography. An asymmetric key consists of a public/private key pair. The private key is used to create a signature, and the corresponding public key is used to verify the signature.

What are the two approaches of digital signature? ›

There are two possibilities, sign-then-encrypt and encrypt-then-sign. The receiver after receiving the encrypted data and signature on it, first verifies the signature using sender's public key. After ensuring the validity of the signature, he then retrieves the data through decryption using his private key.

How do I do a digital signature? ›

When you receive an email with a link to the document you need to digitally sign, here's what to do:
  1. Click the link. Your document should open in an electronic signature tool such as DocuSign.
  2. Agree to electronic signing. ...
  3. Click each tag and follow the instructions to add your digital signature.
  4. Verify your identity.

What are the two requirements for a digital signature? ›

eIDAS digital signature requirements include: Identity - Signatory is identified and validated. Intent - Record of signatory understanding of content and intent to sign.

How do I digital signature in PDF? ›

See how to sign a PDF
  1. Open the PDF document and select select E-Sign from the global bar. ...
  2. Create your signature and initials if not already done. ...
  3. From the Sign panel, select your signature, move over to the field where you want to add it, and then select to place the signature.
Jul 22, 2024

Does a digital signature need to be handwritten? ›

Using a typed signature in your business is legal and accepted. But for an esignature that is legally binding and valid, you must adhere to the following rules: Prove that the signer wanted to sign by providing options like “Cancel.”

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