What does a digital signature provide in electronic transactions?

A digital signature is crucial in electronic transactions as it provides a unique identification of the message sender through encryption. This process ensures that the identity of the sender is verified and that the message has not been altered during transmission. The digital signature uses cryptographic techniques, typically involving a public and private key pair, which secures the transaction and helps authenticate the sender's identity.

By applying a digital signature, the recipient can be confident that the message or transaction truly originates from the claimed sender and is intact, thereby fostering trust and security in electronic communications. This is essential in environments where the integrity and origin of the message are paramount, such as in financial transactions, legal documents, and sensitive communications.

While tracking transactions, anonymity in payments, and maintaining records are important aspects of electronic communications, they do not fundamentally define the key role of a digital signature. Its primary function centers around verification and authentication through encryption, making it a cornerstone of secure electronic transactions.