Digital signatures are authentication mechanisms that ensure the integrity and source of messages by attaching a code derived from the message's hash and the creator's private key. The document discusses various digital signature models, their security requirements, and different algorithms like ElGamal and DSS, highlighting potential attacks and the significance of using a public-private key infrastructure. It emphasizes the importance of properties such as verifiability by third parties, resistance to forgery, and proper key management to prevent disputes.