This paper describes an algorithm for secure transmission of information via open communication channels based on the discrete logarithm problem. The proposed algorithm also provides sender identification (digital signature). It is twice as fast as the RSA algorithm and requires fifty per cent fewer exponentiations than the ElGamal cryptosystems. In addition, the algorithm requires twice less bandwidth than the ElGamal algorithm. Numerical examples illustrate all steps of the proposed algorithm: system design (selection of private and public keys), encryption, transmission of information, decryption and information recovery.