Blockchain Academy
We'll get together for networking with people interested in Blockchain including developers and anyone curious about Blockchain.

Digital Signature

A digital signature is a scheme for verifying the identification of a sender in the network through the process, which a sender with a private key deciphers encrypted message with recipient's public key.

There are no third party institutions to verify transactions in the blockchain. If somebody made a transaction by remittance, everyone in the network should verify the transaction. Digital signature is needed in such situation to achieve peer to peer transactions. When I make a transfer, I write down recipient's address and the amount, and sign with my private key. Then someone, who will verify the transaction information, will use my public key to verify it is 'me' who made the transaction.

In Bitcoin, the private keys and the public keys are created through this digital signature method, and the address is created in the public key. These private and public keys and the address are created by one way function algorithm which means it is impossible to recover the public key from the address, and the private key from the public key.

The image below shows the creation process of private key, public key, and address.