Definition: A digital signature is a mathematical expression that verifies or authenticates the electronic identity of parties to a computer-based transaction. The phrase is related to cryptography. Being able to involve encryption in attributing authenticity makes it possible to safely conduct electronic commerce. Being able to assure the authenticity and content of electronic transactions is vital. Doing business over computers or computer networks is otherwise nearly impossible without the ability to attribute the required information. The commission of fraud would be easy and nefarious if people would be able to repudiate individual transactions with relative ease.
Its Relevance: Being able to accurately determine a party’s identity, electronically, is essential to the survival of a modern organization. A robust system of assuring transactions must be implemented. Information security policies and procedures must be established to maintain the viability of an organization's e-commerce.