Digital signature

Easy

A digital signature is cryptographic proof that a wallet owner approved a transaction or message. In crypto, a wallet uses a private key to create a signature, and the network then uses related public key information to verify that the signature is valid. The private key is not revealed during this process. Digital signatures allow blockchain networks to confirm that a transaction was authorized by the rightful owner or wallet with control over the relevant keys. Digital signatures are a key part of sending crypto and interacting with smart contracts.

When a user sends Bitcoin, their wallet creates a digital signature proving that the transaction was approved by the private key linked to the sending address.