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Electronic Signatures and Digital Signatures

The Electronic Signature vs Digital Signature. In today’s digital world, the terms "electronic signature" and "digital si...

The Electronic Signature vs Digital Signature.
In today’s digital world, the terms "electronic signature" and "digital signature" are often used interchangeably. However, there are key differences between the two, each catering to different security needs. This guide aims to clarify these differences and provide insight into which type of signature should be used in various document signing workflows.

What Is an Electronic Signature?

The US Federal ESIGN Act defines electronic signatures as an “electronic sound, symbol or process, attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record.” Simply put, an electronic signature refers to any signature added electronically to a document, rather than in ink on a physical paper. 

This type of signature is commonly used for verifying the content of a document. However, it is important to note that not all electronic signatures offer the same level of legal assurance. For businesses operating in highly regulated industries or dealing with sensitive customer data, choosing a more secure solution is vital.

What Is a Digital Signature?

A digital signature is a specific type of electronic signature, but with a crucial difference: it is far more secure. Both electronic and digital signatures serve the purpose of signing a document, but digital signatures offer stronger verification. Paper-based workflows have always been plagued with security concerns, such as verifying the authenticity of the signatory and ensuring that the document has not been tampered with. These issues also exist in electronic document workflows.

Digital signatures were developed to address these security concerns. They act as the digital equivalent of a notarized signature. A Certificate Authority (CA), a third-party entity, plays a critical role in verifying the identity of the signer. The CA links the signer's identity to a digital certificate, which is used to create the digital signature. This process allows the signature to be applied locally via a secure token or remotely through cloud-based signing platforms.

When a digital signature is added to a document, cryptographic techniques tie the signer's digital certificate to the content of the document. This creates a unique digital fingerprint, making the signature highly secure. This process ensures that the document is authentic, the signer’s identity is verified, and the content remains unaltered.

Most regulatory bodies now prefer digital signatures over electronic ones due to their enhanced security features. The type of signature you choose should be dictated by the type of documents you are signing. Digital signatures are legally binding under several frameworks, including the US ESIGN Act, FDA CFR 21 Part 11, and Sarbanes-Oxley (SOX), among others. These laws ensure that digital signatures are accepted as valid and secure for official transactions.

Platforms for Digital Signatures

Fortunately, many document signing platforms now support digital signatures, making it easier for businesses to implement secure signing practices. Platforms like DocuSign integrate with GlobalSign to offer both digital signatures and electronic seals. Adobe Sign offers two types of digital signatures: certified and approved. Microsoft Word also supports digital signatures with a token certificate, available in both visible and non-visible formats. These platforms provide businesses with the tools necessary to apply secure and legally compliant digital signatures.

Understanding the differences between electronic and digital signatures is crucial for ensuring that documents are signed securely and in accordance with the law. While electronic signatures may be sufficient for everyday transactions, digital signatures are the preferred choice for businesses in regulated industries or those requiring higher security. By selecting the appropriate signature method, businesses can ensure the authenticity and integrity of their documents, providing confidence in their electronic transactions.

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