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The Role of Digital Signatures in the Online Marketplace

Authenticating legal documentation for business use with the help of digital signatures has become extremely easy and is more prevalent online. In fact, in different countries such as Mexico, Switzerland, Saudia Arabia, Indonesia, Uruguay, Turkey, Algeria, United States and some countries which are in the European Union, the use of digital signatures holds significant legal value.

Growing Use In Different Industries

The use of digital signatures for legal documents has grown over the years to encompass a wide array of fields and industries. It is safe to say that digital signatures are an extremely useful and versatile when used as a means of conducting transactions online. The use of this feature as a means to authenticate, validate and non-repudiate different transactions has played a key role in making sensitive transactions online. In the online marketplace, the role that digital signatures play is a huge one.

For example: The sale and purchase of Bitcoins relies a lot on the use of each person’s digital signature. It ensures the validity of the data in the block chain.

With each passing year, the use of digital signatures is slowly being expanded upon so that it can be included for a large number of online transactions. Digital signatures have also helped to overcome various barriers including limitations placed by time limits, location and more. To ensure their authenticity, there are now legal laws and acts which have to be taken into account when conducting business online.

Limitations of Digital Signatures

When using digital signatures, it is necessary to ensure that you don’t forget about the limitations that can come with it as well. For this simple feature to have any value, the authenticity of a digital signature has to be properly preserved. Similarly, digital signatures are often used in conjunction with an e-signature to validate it. In short, a digital signature can only be as the process used to acquire it. If proper encryption is not applied, it can be hard to authenticate.

Moreover, the responsibility for authenticating digital signatures doesn’t just fall on the shoulders of the person. E-commerce businesses and organizations have to make sure that they have the best security measures in place. Similarly, country jurisdictions also have to be considered when getting digital signatures.

For example: In the European Union, the use of digital signatures is accompanied with very specific laws which detail how the consumer data is to be kept private with the help of proper safety measures. Moreover, these laws not only govern how organizations within the European Union handle digital signatures but can also entail that countries functioning outside the European Union uphold the same standards in privacy when handling data of their citizens.

Contributor: admin
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