Digital Signatures

A cryptocurrency wallet consists of a public/private key pair. To generate a digital signature for a cryptocurrency wallet, its required to have both a private key and a public key. The private key is kept confidential, known only to the owner, while the public key also known as a wallet address is shared with others.  

A digital signature serves to verify that a transaction was indeed initiated by the wallet's owner i.e. the entity that controls the Private Key for the wallet.

In the context of Proof of Solvency, digital signatures are used to prove ownership of a wallet.  

This signature proves to the blockchain network & the ZeKnow Solv Proof that we are the owner of the wallet that is included in the Proof of Reserves calculation.  The ZeKnow Solv proof only recognizes balances in wallets where our company can prove we have the private key & can generate a valid digital signature.  Based on the cryptographic proof that the Reserves calculation is correct, Users can have confidence in the overall statement that our company’s Reserves > Liabilities.

Digital vs. Wet ink signature