The only real reason this is ever a confusing topic is because instructors spend a lot of time drilling into student’s heads that the public key is for encryption and that the private key is for decryption. In general, this is a true statement (and I’m willing to bet you’ll see it on your exam that way). However, remember that the keys are created in pairs—what one key does, the other undoes. If you encrypt something with the public key, the private key is the only one that can decrypt it. But that works in reverse, too—if you encrypt something with your private key, your public key is the only thing that can decrypt it. Keeping this in mind, the digital signature is an easy thing to understand. A digital
signature is nothing more than an algorithmic output that is designed to ensure the authenticity (and integrity) of the sender—basically a hash algorithm. The way it works is simple:
1. Bob creates a text message to send to Joe.
2. Bob runs his message through a hash and generates an outcome.
3. Bob then encrypts the outcome with his private key and sends the message, along with the encrypted hash, to Joe.
4. Joe receives the message and attempts to decrypt the hash with Bob’s public key. If it works, he knows the message came from Bob.
When it comes to PKI, asymmetric encryption, digital certificates, and digital signatures, remembering a few important facts will solve a lot of headaches for you. Keys are generated in pairs, and what one does, the other undoes. In general, the public key (shared with everyone) is used for encryption, and the private key (kept only by the owner) is used for decryption. Although the private key is created to decrypt messages sent to the owner, it is also used to prove authenticity through the digital signature (encrypting with the private key allows recipients to decrypt with the readily available public key). Key generation, distribution, and revocation is best handled within a framework, often referred to as PKI. PKI also allows for the creation and dissemination of digital certificates, which are used to prove the identity of an entity on the network and follow a standard (X.509).
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