WazirX hack: What are ‘Digital Signatures’ that were accessed by hackers?

Produced by: Pranav Dixit Designed by: Manoj Kumar

What is a Digital Signature? 

A digital signature is a mathematical technique used to validate the authenticity and integrity of a digital document or message.

How it Works

It uses cryptography to create a unique, unforgeable electronic fingerprint that’s linked to the signer and the document.

Ensuring Authenticity

It verifies that the signature is genuinely from the person or entity claiming to have signed it.

Protecting Integrity

It guarantees that the document hasn’t been tampered with after it was signed.

Legal Recognition

Digital signatures are legally binding in many countries, offering the same legal status as handwritten signatures.

Widely Used

They are commonly used for signing contracts, legal documents, financial transactions, and other important digital communications.

Enhanced Security

Digital signatures provide a higher level of security compared to traditional handwritten signatures, making them more difficult to forge.

Increased Efficiency

They streamline workflows and eliminate the need for printing, signing, and physically delivering documents.

Cryptocurrency Transactions

Digital signatures are crucial for authorising cryptocurrency transactions, verifying the sender’s identity and the legitimacy of the transfer.

Multi-Signature Wallets

Some cryptocurrency wallets use multi-signature technology, requiring multiple digital signatures to authorise a transaction, enhancing security.

Vulnerabilities Exist

As demonstrated by the WazirX hack, multi-signature wallets, while generally more secure, can still be compromised if attackers gain access to the required digital signatures.