PROOFOFCUSTODY
Bitcoin
Data
Get the Report
PROOFOFCUSTODY

The independent scoring system for Bitcoin custody. Every platform scored and ranked.

$1B+ in assets under custody expertise

No spam. Unsubscribe anytime.

PLATFORM SCORES
All ScoresCompareMethodologyCustody Assessment
LEARN
Bitcoin 101Custody GuidesFAQQuiz
RESOURCES
DataPodcastReportEditorial Independence
CONNECT
Twitter / XLinkedInYouTubehello@proofofcustody.io
2026 Proof of Custody. Published by Onramp Bitcoin. Editorial Independence.proofofcustody.io
Glossary
SGlossary

Signature

A digital signature is similar to a physical signature in theory, yet far more secure and trustworthy.

A digital signature is similar to a physical signature in theory, yet far more secure and trustworthy. Like its physical counterpart, a digital signature indicates approval of the data being signed. Unlike a physical signature, a digital signature cannot be copy-pasted because a signature is unique for each piece of data being signed. For example, if you create a signature for the text “Hello”, this signature is invalid for the text “Hey”. This trait allows digital signatures to be publicized without risk of fraud. There are three parts to a digital signature: the data being signed, the public key of the signer, and the signature itself. The data can be anything digital, including text, an image, an audio file, and more. The public key is a pseudonymous form of identity, informing the public that the owner of the corresponding private key has signed this message. Lastly the signature is mathematical proof that the owner of the public key and the corresponding private key signed the exact data provided. The magic here is that the private key is required to create the signature, but not required to verify it. Anyone can verify that the signature is valid using only the public key. Furthermore, since the signature is generated using the hash of the data it is signing, verifiers can be sure that the data provided is unaltered since it was signed.

Related Terms
TransactionCryptographyPublic KeyPrivate Key

Stay Informed

Get weekly custody analysis and Bitcoin education delivered to your inbox.