Glossary

This is a glossary of terms related to crypto, blockchain and Rain.

Digital Signature

What Is a Digital Signature?

A digital signature is a method to verify the authenticity of digital communications. Cryptography is used in digital signatures to determine whether a digital message or document is genuine. If a signature is declared valid, it can be claimed that the communication is from the person it claims to be from, known as authentication. 

Also, the sender cannot justifiably deny that the communication is from them (known as non-repudiation) and that the communication has not been altered or tampered with ( known as integrity.)

How Do Digital Signatures Work

Digital signatures employ public key cryptography, which encrypts and decrypts using sets of public and private keys. Public keys, as the name implies, are broadcast to the public, while private keys are kept private. 

To digitally sign a communication, the sender uses software to generate a hash of the message, which then is encrypted with their private key. Next, the encrypted hash is decoded using the sender's public key to verify a message. The message is then hashed again; if this hash fits the decrypted one, the message is legitimate.

Difference Between Digital Signatures and Electronic Signatures

Although the former phrase is frequently used to describe the later technology, digital signatures are not like electronic signatures. Instead, any digital mark that's also meant to represent a signature is an electronic signature. 

HelloSign and Adobe Sign are two famous examples. Nevertheless, some electronic signature technologies may integrate digital signature technology, implying that public key cryptography was utilized. 

Online, digital signatures are commonly used to authenticate network connections, for example. They're also becoming more common in government. For instance, the United States Government Printing Office now publishes influential papers with accompanied public signatures to authenticate their legitimacy.

Rain Trading is licensed by Abu Dhabi Global Market’s (ADGM) Financial Services Regulatory Authority (FSRA). We are headquartered in the United Arab Emirates.
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