Friday, May 24, 2013

Signing and verifying documents with Bitcoin

Digital signing system verifies that any document can be proven by to be signed by a certain party.

What's a digital signature?

Bitcoin comes with a way to sign any data. The private and public key pair Bitcoin itself is based on is needed for signing transactions, but they are not restricted to that. Of particular interest is signing documents.

The document signature can connect a specific Bitcoin address and a document together, proving that the Bitcoin address owner has personally approved the document. A signature looks like this:

IJ/17TjGGUqmEppAliYBUesKHoHzfY4gR4DW0Yg7QzrHUB5FwX1uTJ/H21CF8ncY8HHNB5/lh8kPAOeD5QxV8Xc=
 
Note that there is no whitespace in the signature.

LocalBitcoins.com uses Bitcoin to digitally sign its receipts

LocalBitcoins.com uses Bitcoin digital signatures for receipts that can be verified actually were written by Localbitcoins.com. We also have a convenient form for verifying any Bitcoin message without installing the Bitcoin software.

Let's follow through with an example. With the signature you can verify that LocalBitcoins.com's Bitcoin address 1Q1wVsNNiUo68caU7BfyFFQ8fVBqxC2DSc has signed, for example, the following message:
Localbitcoins.com will change the world
Changing the message, address or signature by just one letter makes the verification fail. Try it now on our online verification page!

Follow LocalBitcoins.com on Facebook, Twitter, Google+.

3 comments:

  1. Thank you for the helpful information. I also think that Forexminute.com is a good website, it has very helpful information for Bitcoin News, Forex brokers reviews, binary options brokers and financinal news.

    ReplyDelete
  2. This is a very good scheme to secure information. I read a lot about the benefits of this scheme and how it works.
    digital signature

    ReplyDelete