What is digital Signature. What is the process of creating and verifying a digital signature?

A digital signature is a cryptographic mechanism used to verify the authenticity, integrity, and
non-repudiation of digital documents or data. The process of creating a digital signature involves
the following steps:

 The signer creates a hash of the document or data to be signed using a hash function
such as SHA-256.
 The signer encrypts the hash value using their private key, which generates the digital
signature.
 The digital signature is attached to the original document or data, and the recipient can
verify its authenticity by decrypting the digital signature using the signer's public key.
 The recipient then generates a hash of the document or data they received and
compares it to the hash that was originally signed. If the hashes match, then the
recipient can be confident that the document or data has not been tampered with and
that the signature is authentic.

What is the process of generating identity in Block chain?

Your public key is used to receive payments or other transactions, while your private key is used
to sign transactions and prove ownership of your identity.

Problems of ScroogeCoin?

Answer: Advantages

 a ledger-based cryptocurrency
 Prevent double-spending
Limitations
 Scrooge has too much influence. He can’t create fake transactions,
because he can’t forge other peoples’ signatures but he could stop
endorsing transactions from some users
 If Scrooge is greedy (as his cartoon namesake suggests) he could refuse
to publish transactions unless they transfer some mandated transaction
fee to him
 Scrooge can also of course create as many new coins for himself as he
wants
The problem here is centralization
What is distributed consensus?
Distributed consensus protocol. There are n nodes that each have an input value. Some
of these nodes are faulty or malicious. A distributed consensus protocol has the
following two properties:
 It must terminate with all honest nodes in agreement on the value
 The value must have been generated by an honest node