DIGITAL SIGNATURE : BANE OR BOON?

inbatv Articles, Law School

MEANING AND WORKING

A digital signature is a mathematical technique used to validate the authenticity and integrity of a message, software or digital message. It acts as an equivalent to the handwritten signature.[1] According to Section 2(1)(p) of the Information Technology Act, 2000, a digital signature means “authentication of any electronic method or procedure in accordance with the provisions of Section 3 of the Act.[2]

Digital signatures are based on public key cryptography, also known as Asymmetric Cryptography. It requires a Public Key and a Private Key to function. Digital signatures work through public key cryptography’s two mutual authenticating cryptographic keys. The individual who creates the digital signature uses his/her own private key in order to keep the data encrypted. The secrecy of the private key is an essential while making Digital Signature, otherwise the private information of the person can be misused.[3]

DIGITAL SIGNAUTRE : A BOON

In today’s world technology is an essential part of almost all spheres of life. Transactions and contracts are also being made over the internet. Thus, digital signatures are the need of today. Since not all transactions can be done in handy, digital signatures are the alternative for performing e-transactions.

Advantages of Digital Signatures :

  1. Secure : Digital signatures reduce the risk of duplication or alteration of the document. It is made sure that the signatures are verified, legitimate and authentic. Signers are provided with PINs and codes in order to verify their identity.
  • Legal Validity: A document containing digital signature has the same value under the court of law, like the handwritten signature.
  • Cost Savings: Companies find digital signatures cost saving as there is no paper work, expense in ink, printing or scanning. Digital signatures also reduce other indirect costs like filling etc.
  • Environmental Benefits :Digital signatures are a step towards environment friendly business techniques. Since they are done digitally, there is no paper waste. It is a good way in which companies can become eco-friendly.
  • Time Saving : Not only are digital signatures cost saving, but also time saving. It takes lesser time as the contracts can be done just with a click of a button. Also, any gadget can be used for the purpose of signing, so people can sign as per their convenience.[4]

CONCLUSION

In this technologically driven era, e-commerce and digital transactions have become a commonplace. With this the need of digital signatures also arises as no transaction can be completed without being authenticated by the persons involved in the same. Signatures are considered to be unique to a person and thus mark the approval of parties. Digital Signatures are an advanced and secure method of performing online transactions, without the fear of fraudulent activities and misuse of personal information. Thus, digital signatures are a boon to the world. 

By

Ridhi Gupta,

INBA Intern

[1] Margaret Rouse – “Digital Signature”, April 2020 – https://searchsecurity.techtarget.com/.

[2] “Digital Signature” – https://www.toppr.com/guides/business-laws-cs/cyber-laws/digital-signature/.

[3] Margaret Rouse – “Digital Signature”, April 2020 – https://searchsecurity.techtarget.com/.

[4] Eliza Paul – “What is Digital Signature – How it Works, Benefits, Objectives, Concept”, September 12, 2017 – https://www.emptrust.com/blog/benefits-of-using-digital-signatures.