What role does a digital signature play in online transactions?

A digital signature is a crucial element in online transactions as it verifies the identity of the sender and ensures the integrity of the message. When a digital signature is applied, it uses cryptographic techniques to create a unique code that is linked to both the message and the sender's identity. This process not only confirms that the message was sent by the legitimate sender (authenticity) but also ensures that the message has not been altered in any way during transmission (integrity).

In situations like signing contracts, conducting financial transactions, or sharing sensitive information, having this level of verification is essential for building trust between parties. The presence of a digital signature assures the recipient that they are receiving a genuine message, which is critical in preventing fraud and maintaining security in online interactions.

Other choices do not align with the primary functions of a digital signature. While they address various aspects of online activity or data handling, they do not encapsulate the key role of a digital signature in ensuring sender authenticity and message integrity.