Digital signatures (typically known as electronic signatures), works on the concept of a traditional paper-based signing and then turning into an electronic fingerprint. This fingerprint carries a code message that is unique for both, the document as well as for the signer that binds them together. This digital signature ensures the authenticity of the signer and thus protects the document if the sign has been invalidated by the system. Thus, creating a digital signature, help various organizations in sustaining their authenticity, data integrity, accountability as well as non-repudiation of signed electronic forms as well as documents.
From technical point of view there are majorly two benefits resulting from digital signature. They are:
The message sent by the sender is most often not very precise. Thus for this reason digital signatures are used for authenticating source of the message. When the proprietor of secret key is being linked with a specific user, the valid signature shows that the message was truly sent by the particular user. This type of level of authenticity has been enforced specifically with the financial context. The financial transactions between various organizations when done, needs valid authentication through digital signatures.
When both, the sender as well as the recipient of particular message need to cross-check and be assured that the communication has been remained unaltered during its delivery, then at that time digital signature comes into picture. Digital signature offers crucial benefit by maintaining the integrity of the message between sender and recipient. In most of the cases, certain part of the message is being hidden and so some of the algorithms pass this encrypted message without understanding it. Thus, if a message is being digitally signed, then any alteration would result in invalid and will not support it.
Thus, in general, most of the commercial areas uses digital signature for sharing message and data between various organizations. This helps in maintaining data integration as well as its authenticity, especially during financial transactions. Thus, this is how digital signatures are proving to be much beneficial for various commercial areas such as small as well as large businesses as well as different industrial areas.