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Digital Signatures in Blockchain
Since at least the 17th century, written signatures have been employed to verify documents. They appear on a wide range of documents, from job contracts and credit card receipts to international treaties. However, the digital age has brought up new forms of communicating that are no longer limited by paper and physical mailboxes.
Because they are based on number theory, digital signatures are nearly impossible to fake. In "public key cryptography," users have a public key and a private key that form a pair. Encryption is used in public key cryptography to ensure security and secure critical key information.
With the advent of cryptocurrencies, a new era of innovation began, connecting cryptography and distributed computing. Cryptocurrencies represent a dualistic concept: on the one hand, we consider them an extremely volatile and speculative asset, and on the other hand, we consider them a revolutionary technology with the ability to revolutionize existing systems and structures.
Digital signatures are a key building component in blockchains, primarily used to authenticate transactions. When users submit transactions, they must prove to every node in the system that they have the permission to spend the funds while preventing other users from doing so. To agree on a correct state, every node in the network will verify the submitted transaction and check the work of all other nodes.
Blockchain technology could not function globally without the correct signature methods where every miner or validator must verify every signature. Signature size, verification time, and security are all constantly improving. If the benefits are compelling, one strategy may become more viable than another.
Cryptography research has increased and will continue to grow in tandem with the blockchain space. Much current research is devoted to zero-knowledge proofs, and other aspects of cryptography that are not currently relevant to blockchains may become so in the future. Cryptography deals with some of the most sensitive data, hence it is critical that these systems are well tested.