A digital signature is a cryptographic technique used to validate the authenticity and integrity of a message or transaction. In the context of digital transactions, it serves as a virtual fingerprint that ensures only the rightful owner can approve a transfer of assets.When a user initiates a transaction, a unique hash of that transaction is created. This hash is then encrypted using the sender’s private key, producing a digital signature. The signature is sent along with the transaction to the network.Upon receiving the transaction, the network nodes can decrypt the signature using the sender’s public key. If the decrypted hash matches the hash of the transaction, it confirms that the transaction is legitimate and has not been altered. This process also verifies that the signature was created using the private key of the sender, proving their ownership.Digital signatures enhance security by preventing unauthorized transactions and ensuring that all parties can trust the integrity of the data being exchanged. They play a crucial role in maintaining transparency and accountability in the ecosystem.