A Simple Guide to Differentiate Between Digital Signatures and Electronic Signatures
Understand the key differences between digital signatures and e-signatures to choose the right solution for secure and efficient document signing.
In today’s world, time is MONEY. How we sign documents in this fast-paced world measures a company’s success. Several companies in recent years have moved from traditional ink on paper to using online singing tools. Still one question that many businesses ask before opting for online signing methods is: What is the difference between digital signature and electronic signature?
Businesses use these two terms simultaneously but in reality, they are not the same. Having a clear understanding between these two will help businesses make an informed decision especially when it comes down to offering security, convenience and compliance. In this guide, you will know aspects related to digital signatures and e-signatures.
Electronic and Digital Signature: A Wave of Change
An e-signature is one of the most commonly used electronic methods of agreeing to an agreement. It is as simple as stating your name in a document or checking a box which says “I Agree” in a website.
Along with the ones that we have already mentioned there are others such as clicking on buttons that say “Approve” or “I Accept” and one of the oldest methods which is uploading an image of the handwritten signature.
Digital signatures mean a specific type of e-signature and that is one of the things you need to understand first when we talk about digital signature vs e-signature. In this method an encrypted technology is put to use to verify the authenticity of the person signing the document in order to maintain the integrity of the signed document. It is the most secure way to make your document tamper-proof.
Public Key Infrastructure (PKI) is a global security network which helps to run the whole system of digital signature. There are two main components of it:
- A private key: Thai key is solely used by the person signing the document.
- A public key: this key is shared with the owner or the 3rd party who needs to verify the signature.
Once the document is signed, any alteration made afterwards will make the document invalid.
Identifying the Need to Use Digital Signature and E-Signature
As we have already answered ‘what’ now let’s come to ‘when’. When there is a need to maintain strict security then it is ideal to go with digital signature such as:
- Financial document
- Government forms
- Legally binded contract
- Insurance documents
- Documents that need audit trails
Electronic signatures are chosen when convenience is prioritized over security. This is used in the following cases:
- Employment letters
- Sales agreements
- Vendor contracts
- Rental forms
- Non-disclosure agreements (NDAs)
To authenticate the electronic signatures there are several acts that have been enforced over the years such as ESIGN Act, eIDAS, UETA and others.
What is Best For Business?
Which one you need depends on your requirement.
Choose electronic signature if your priority is a simple workflow where signings can be quick and easy and documents that are being handled are on the lower end of the risk.
You must go with the digital signature when you need strong encryption along with tamper proofing. In this case the signer’s identity will be verified while maintaining strict regulations.
With SignPaperless as your partner, you can choose any one between digital signatures and e-signatures. We cover all the bases while keeping it simple, fast and reliable. So take the call now and partner with us to revolutionize document workflow with our cost-efficient, almost 45% faster way of signing digital documents.
