# Digital Signatures

Although hash tables and data structures like Merkle Trees are where hash functions find their greatest use, the most widely recognized use of hash functions is in cryptography. In addition to encryption and key-exchanges, digital signatures make extensive use of hash functions. Like a physical signature, a digital signature associates an identity to a document or message. To ensure the security of digital signatures, well tested algorithms are used to both construct and verify them.

In Bitcoin, digital signatures are most commonly used for Pay-to-Public-Key-Hash (P2PKH) transactions – the most common type of Bitcoin transaction template -- where the ownership of funds are transferred from the sending party to the receiving party. The two other common uses of digital signatures in Bitcoin are for signing arbitrary messages and using a Bitcoin address as part of the verification process, and MinerID which is a message included in the first transaction of a block that acts as an authentication mechanism in case another miner (Bitcoin node) tries to act dishonestly while using the ID of a competing miner.

With that said, it's helpful to recognize that even though hash functions and cryptographic digital signatures are used in Bitcoin, it is **not** a cryptographic system, and it's actually incorrect to use the term “cryptocurrency” when referring to Bitcoin or a system that follows the Bitcoin architectural design like BSV. This is a really important distinction to be aware of; it is fundamental to how the Bitcoin system operates and how it's secured.


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