Certification authorities are vendors trusted by both parties to a business transaction. They verify that the parties have received and signed agreements through the application of their key codes. The authorities also maintain secure repositories for electronic documents known as digital certificates, which are issued once the authority has verified the authenticity of the parties to a transaction. But similar protections don't exist for large business transactions. Now however, business transactions can be protected through the use of digital signatures that can be secured and verified for their authenticity.
Parties conducting Internet transactions can do so with greater confidence, experts say.
That will happen because the actual transmission of contracts will be more secure. Additionally, digital signatures will help resolve legal disputes that could otherwise arise in the course of conducting business online. The signatures can establish definitively that a specific party signed off on a particular contract or document. Thus, they help ensure the validity and enforceability of contracts arranged over the Internet. Insurance, real estate, securities and other financial industries are expected to benefit from the use of digital signatures, Mr. Colton said.