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Signature, in Web3 and blockchain technology, is a cryptographic proof of authenticity and integrity associated with a piece of data or transaction. It is typically generated using a private key and provides verification that the data has not been tampered with and originates from the expected source. Signatures play a crucial role in Web3 for verifying the identity of participants, ensuring data integrity, and protecting against unauthorized modifications, making them fundamental in decentralized systems for secure transactions and interactions.