This research paper examines the critical role of digital signatures in ensuring the security, authenticity, and integrity of transactions within blockchain technology and cryptocurrency ecosystems. It explores the technical foundations of digital signatures, rooted in public-key cryptography, including algorithms such as RSA, DSA, and ECDSA, and their practical applications in Bitcoin, Ethereum smart contracts, and Decentralized Finance (DeFi). The study highlights how digital signatures enable non-repudiation, prevent double-spending, and maintain tamper-proof records in decentralized networks.

The paper further analyzes the evolving legal landscape governing digital signatures, comparing international frameworks like the UNCITRAL Model Laws, EU’s eIDAS Regulation, and the US E-SIGN Act with India’s Information Technology Act, 2000. It addresses existing regulatory gaps in blockchain-specific legislation, particularly concerning smart contracts, pseudonymous transactions, and cross-border enforceability. Through case law analysis and comparative jurisdictional review, the study identifies challenges and proposes a robust legal framework tailored to the Indian context to foster innovation while ensuring compliance, security, and trust.