What Are Digital Signatures?
A Digital Signature in Bitcoin verifies the sender's authenticity without revealing their private key. Attaching a digital signature to a message confirms the sender owns a specific private key related to a known public key, all while keeping the private key hidden. The process involves encrypting a message's hash with the private key. Anyone verifying the signature decrypts this encrypted hash using the sender's public key, ensuring it matches the message's original hash—any alterations in the message or errors in the key result in mismatched hashes. Essentially, digital signatures maintain security and confirm identity within Bitcoin transactions.