What the format changes

The usual representation stores r, s and recovery parity separately. ERC-2098 defines r and yParityAndS as two 32-byte words. Canonical low-s signatures leave the most significant bit of s unused, so the compact representation can carry parity there. ERC-2098 · Compact signature representation ↗

Decoding and checking

A verifier reads that highest bit as parity and masks it off to recover s. After decoding, normal signature verification still uses the original message hash and the expected signer. A shorter encoding does not supply a domain or chain identifier. The surrounding signing protocol defines those fields.

Integration tests

Check whether every wallet, ABI and verification library accepts the compact form. Test round trips for both parity values and reject invalid lengths and noncanonical signatures according to your verifier. Keep the message, digest and signature format with any audit record.