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In what scenario are self-signed certificates most commonly used?

  1. When external validation is not necessary

  2. When purchasing from a public CA is too expensive

  3. When access needs to be restricted to a public network

  4. To improve security through public verification

The correct answer is: When external validation is not necessary

Self-signed certificates are particularly useful in scenarios where external validation is not necessary. They are often employed in controlled environments, such as internal networks or during the development and testing phases of applications, where the parties involved trust each other and the risks associated with using a self-signed certificate are deemed acceptable. In these situations, an organization can create its own certificates instead of relying on a third-party certificate authority (CA). This method allows for swift deployment without incurring the costs or delays often associated with obtaining certificates from a public CA, which might also not be necessary for internal operations where external validation of identity is not required. Using self-signed certificates can also streamline processes, especially in scenarios where the validity of the certificate does not depend on a wider trust model, making it a suitable option for non-public or limited-access environments. Therefore, the scenario where external validation is not essential aligns perfectly with the capabilities and intended use of self-signed certificates.