Technology
Electronic Signature Versus Digital Signature Explained

Do you know the difference between an electronic signature and a digital signature? If you’re like the majority of digital users, you’ll assume a digital signature is an eSignature – right? Umm wrong. While both terms are often used interchangeably, they have different functions and features, and in this article, we will explain what they are, just so you can spread the word.
What is an e-Signature, vs a Digital Signature?
The infographic on OneSpan’s blog says an eSignature is a legal concept and its use is for contracts shared digitally. The action of signing the document is showing the user’s or signatory’s intent to agree to the terms.
An eSignature can be a symbol, image, a biometric fingerprint or even a sound, and the user chooses what eSignature they wish to use. Unless the e-Signature is secured with a digital signature, the e-Signature is not verified.
The digital signature is the encryption technology that certifies the eSignatures. Digital signature technology is authorized by certification authorities. The certificate is recognition and assurance for all parties concerned, that the digital signature technology has met the required standards and is therefore up to the task.
Significance of E-signature
Hereon in we will refer to the use of online signatures (certified or otherwise) as electronic signatures. As businesses have taken all their administration online, documents are generated electronically, and the e-signature has mostly replaced the need for handwritten signatures.
Ease and Convenience
e-signatures on contracts and sales agreements have provided a level playing field for businesses of all sizes. For example, with e-signatures, there’s no need for the face to face meetings that chew up time and money. Smaller companies with less staff can have all hands on deck working productively in the business.
Plus documents can be signed by clients and the company without the need for scanning or even emailing the documents as they are accessible by all parties online.
No More Messy Paperwork
Through digitizing the signature process, sales are fulfilled quicker. Please no longer do legal representatives need to travel to and from client locations for signing contracts and sales agreements. Plus there’s no need for offline storage facilities as everything is stored online and more than likely in the cloud.
Improve Security and Safety
Hardcopies have never been safe from manipulation, damage or destruction. Whereas the digital signature offers document authenticity, also proof of source and that it has not been tampered with. The online storage of digitally signed documents is even more secure than the hard copy equivalent stored in the locked cabinet in your office.
Hardcopies, as we know, can also be misplaced, tampered with, destroyed and even stolen. Over the years, there have been many crime stories based on criminals going free due to lost evidence.
Digital documents are much harder to manipulate than hard copies too as every edit leaves an audit trail. Furthermore, the user can check the date stamps for all action taken, including creation date, revisions, and opens. A lot of the security smarts are also hidden from view from users but accessible by the administrators and software developers.
e-signatures have reached maturity, and they are used for payroll, loans, employee contracts, RS forms, letters of consent, mortgage services, HR, procurement, and supplier agreements.
The industries using them ubiquitously include
- Financial services
- IT and cybersecurity
- Construction and engineering
- Accounting and Tax
- Healthcare
- Insurance
- Government
Summary
Like all technology disruption, the efficiency of e-signatures has proven invaluable for speeding up sales, and identification. Their use improves workflow processes, reduces time and costs, as well as being more environmentally friendly. Just imagine the carbon footprint of all that travel to and from customer sites, and paper wastage if e-signatures had not been invented.
- Social Media3 years ago
Top 5 Advantages and Disadvantages of Social Media Marketing
- Management8 years ago
The man who destroyed his multimillion dollar company in 10 seconds
- Management3 years ago
The Five Common Materials Used to Manufacture Reusable Grocery Bags
- Management8 years ago
If you fail to plan, you plan to fail
- Management3 years ago
Unexpected Death of a Business Owner: What Happens Now?
- Accounting & Finance8 years ago
Do You Have a Poverty Mentality?
- Management8 years ago
Workforce Planning – Balancing Demand and Supply
- Management2 years ago
Have An Eye for Eyewear? Here’s How to Start Your Own Optical Business
- Innovation4 years ago
5 Ways How Globalization Impacts Small Businesses
- Management3 years ago
7 Essential Tips For Opening a Mechanic Shop
- Management3 years ago
The Importance of Presentation Skills in Business
- Management3 years ago
Pros and Cons of Offshoring