System and method for implementing digital signature using one time private keys

A computer implementable method for implementing transactions by a signing entity over a network to a receiving entity using digital signatures, the method comprising the steps:

• a) generating a new asymmetric key pair as and when a digital signature is needed, wherein the new asymmetric key pair comprises a new private key and a public key, and wherein the new private key is randomly generated at possession of the signing entity;
• b) generating a certification request containing the public key;
• c) generating the digital signature using the new private key;
• and
• d) irretrievably deleting the new private key;
• e) establishing communications with an authentication and certification server for authenticating the identity of the signing entity;
• f) sending the certification request containing the public key to the authentication and certification server;
• g) receiving from the authentication and certification server a digital certificate certifying the ownership of the public key;
• and
• h) sending the digital signature and the digital certificate to the receiving entity;
• wherein each new private key is used to generate the digital signature only once;
• and
• the new private key never leaves the possession of the signing entity.

A system initiates a transaction over a network using digital signatures comprises:

• a signing entity desiring to perform transactions over the network with a receiving entity;
• an OTPK (One-time Private Key) module residing in the signing entity for generating only new asymmetric key pair as and when a digital signature is needed, wherein the new asymmetric key pair comprises a public key and a new private key, the OTPK module for generating the digital signature using the new private key and a certification request containing the public key;
• an authentication and certification server for authenticating identity of the signing entity, for receiving the certification request and for issuing a digital certificate certifying ownership of the public key by the signing entity;
• wherein each new private key is used to generate the digital signature only once;
• and the new private key never leaves the possession of the signing entity.