The phrases "electronic signatures" and "digital signatures" are sometimes used synonymously, there are some significant distinctions and particular justifications for choosing one over the other. At GlobalSign, we frequently interact with businesses that are perplexed by the two possibilities and require assistance choosing which type of signature to incorporate into their workflow for document signing.

What is an Electronic Signature?
 

Any signature that is applied electronically rather than on a physical piece of paper is referred to as an "e-signature." The content of a document can be verified using an electronic signature, but not all electronic signatures have the same level of assurance in the eyes of the law. Consider a more secure choice if you work in a highly regulated industry, such as finance or accounting, HR, legal, or healthcare, where you deal with sensitive personal and/or confidential information and data.

What is a Digital Signature?
 

Although digital signatures are a type of electronic signature and are used to sign documents, they differ from electronic signatures in a few significant ways.

It might be beneficial to stand back for a moment and consider the security issues around paper-based documents and workflows before we get into the specifics. When dealing with paper-based documentation, people and organisations most frequently have these worries:

• Is the signatory to the document really who they say they are? Alternatively, how can I make sure the signature is genuine and not a forgery?
• How can I ensure that the document's contents haven't been altered—or, from the perspective of the recipient, confirm this?

The origins of notaries may be traced all the way back to ancient Egypt in an effort to address these very legitimate concerns (according to the National Notary Association). Today's notaries are essential in convincing the parties to a transaction that a document is genuine and reliable.

The same issues affect electronic document processing, as we should expect. Digital signatures, which are effectively the digital counterpart of adding a notarized signature to your paperwork, were created to help address this issue. A Certificate Authority (CA), a dependable third party, is in charge of confirming your identity while using digital signatures.

You can use your certificate to create digital signatures locally with a token or remotely using any of the cloud-based signing platforms since certificate authorities link your identity to a PKI-based digital certificate.

Cryptography combines the data being signed with your digital certificate (given after confirming the user's identity) to create a single, unmistakable "fingerprint" when you apply a digital signature to a document. The cryptographic elements that make up your digitally signed document cannot be copied or changed, just like with a real fingerprint. Because of this, digital signatures are more potent in the eyes of the law because they are secure and compliant. Your documents can be digitally "packaged," "sealed," or transformed using digital signatures.

In conclusion, a well-planned and safe cryptographic process enables digital signatures to guarantee the following:

• The document is true and originates from a reputable source.
• Identity has been confirmed by a reputable organisation (the CA)
• Since the document was digitally signed, no changes have been made because doing so would render the signature invalid.

How Can I assure if a Signature is Digital and Can Be Trusted?
 

The simplest way to determine whether a document or PDF has been successfully digitally signed and trusted is to open the signing panel in Adobe Reader and check to see if the signer's signature has a green checkmark, indicating that the signature is genuine and attesting to the document's integrity.

You will notice a yellow triangle or red circle warning in the document reader suggesting there is a problem or an invalid signature if for whatever reason there is a problem with the signature or document.

You can adhere to the following laws and standards by using digital signatures and seals:

• FDA CFR 21 Part 11 US UETA US ESIGN (Electronic Signatures in Global and National Commerce) (Uniform Electronic Transactions Act)
• Seals for US State Professional Engineers (PE)
• The UN Model Law on Electronic Signatures
• Sarbanes-Oxley (SOX)
• eIDAS (advanced & qualified e-signatures, deals)
• CNCA (People's Republic of China's Certification and Accreditation Administration)

Key benefits of E-Signature and Digital Signature
 

Similar to a regular signature but better:
 

The advantages of electronic signatures over their ink-based predecessors are numerous. They are instantaneous, portable, legally binding, and have a smaller environmental impact. They are frequently backed by technology that confirms the signature's legitimacy.

Instant, convenient, reliable
 

Electronic signatures save needless delays and hasten approvals and agreements. Electronic signatures are immediate, so there's no need to wait for the mail or get in your car to hand off paperwork. As soon as you have put your electronic signature on a document, you can move on to the next phase.

Electronic signatures make it considerably simpler to sign documents. Because electronic signature solutions are portable, you can sign documents or ask for signatures almost anywhere. Printing, signing, scanning, and resubmitting the paper are not required steps. Additionally, you can send and receive signed documents without a fax machine.

Small errors won't become major issues because many electronic signature systems won't let you submit a document until they've been corrected.

Legally binding
 

Legally speaking, electronic signatures are equivalent to handwritten ones. Electronic signatures are defined and given the same legal standing as ink-based signatures under the E-Sign Act, which was adopted by the US in 2000. The Uniform Electronic Transactions Act, which permits electronic signatures, has been ratified by almost all states. Only a small number of papers, including wills, cannot be electronically signed.

Easy on the environment
 

Scan, printing, and faxing documents in order to establish an electronic signature is not only inconvenient and time-consuming but is also bad for the environment. Every gadget you purchase raises your overall carbon footprint. Fewer devices will make your workflow more efficient. Additionally, you won't need as many trees to be cut down to make the paper used to print hardcopy documents.

Overall, electronic signatures have advanced significantly and offer traditional ink-based signatures far more ease, security, and speed. If your business continues to use wet signatures, you should switch to eSignatures to take advantage of all their advantages.

Main features of Digital Signature
 

A digital signature is a distinctive trait in digital form, similar to an embedded fingerprint in a document. To be linked to the document, the signer needs a digital signature certificate.

The digital signature is released by the certification authority.

It is similar to a passport or a driver's licence. The authenticity of the document can be checked with a digital certificate to see if it has been tampered with. It is crucial to the process of confirming identities.

A digital signature's usage in securing digital documents is an important additional feature. While fraudsters can fake papers to submit online using an electronic signature, it is practically impossible to do so using a digital signature. Only an authorised individual can see the protected electronic document and make modifications or adjustments.

The digital signature certificate is linked to the signed data in a single, distinct fingerprint when a digital signature is applied to a particular document. Because it is easy to verify the origin of these two distinctive elements of a digital signature, it makes them more useful than wet signatures. The following actions are made possible thanks to this cryptographic operation:

• Demonstrating the document's legitimacy and its source
• Ensuring that the document was not altered after being signed
• Confirming the signer's identity.

Main features of an electronic signature

Any electronic symbol, procedure, or sound connected to a document or contract that the interested party desires to sign constitutes an electronic signature under Indian law. Therefore, the intention to sign a document or agreement constitutes the primary component of an electronic signature. The fact that an electronic signature can be oral, a simple mouse click, or any other type of electronic authorisation sets it apart from a digital signature is another notable feature.

An electronic signature's primary feature is that it makes the signer's intent to sign the document clear. It typically abides by contracts or other agreements made between two parties. As was already noted, there are various kinds of electronic signatures. Once all parties have shown that they are willing to enter into a particular contract, it becomes legally binding.

An electronic signature also aids in confirming the legitimacy of the document, which is another benefit.

The parties who are involved should be able to be identified once it has been signed. However, because there is no digital signature certificate to secure the procedure, it might be challenging to validate an electronic document.

The fact that an electronic signature is utilised to execute a contract is another noteworthy characteristic. For instance, two parties will typically agree to carry out specific tasks in a contract. If both parties sign, this Agreement shall be deemed to be legally binding. You may utilise an electronic signature in this situation. Additionally, due to their usability, electronic signatures are frequently employed in contracts.

Table Showing Differences between Digital Signature and Electronic Signature

 

Conclusion: Electronic and digital signatures differ in a number of very important ways. We made an effort to provide a succinct summary of the categories while highlighting their primary differences. The technologies and procedures you need to deploy depend on the types of signatures an organisation needs to collect.