Section 3 of ITA, 2000 : Section 3: Authentication Of Electronic Records

Explanation using Example

Let's consider a scenario where Mr. Sharma, an online entrepreneur, is signing a contract with a supplier, Mr. Gupta, over the internet. According to Section 3 of the IT Act, 2000:

1. Mr. Sharma can authenticate the contract (an electronic record) by affixing his digital signature, ensuring that it's him who is agreeing to the terms.

2. The authentication is done through an asymmetric crypto system and a hash function. This transforms the contract into another electronic record, providing security. The hash function ensures that it's nearly impossible to:

   1. Reconstruct the original contract from the transformed version.
   2. Have two contracts produce the same transformed version.

3. Mr. Gupta can verify the contract using Mr. Sharma's public key, confirming it was indeed Mr. Sharma who signed the contract.

4. Both the private key used by Mr. Sharma to sign, and the public key used by Mr. Gupta to verify, are unique to Mr. Sharma, ensuring the security and authenticity of the transaction.