What is the difference between an electronic and digital signature? The primary difference between a digital vs an electronic signature is that digital signatures provide authenticity for the signature to prevent forgery, tampering, and such actions. However, electronic signatures ensure that the signer is legally tied to the terms and conditions stated in the document.

Yet, do you need more clarity to understand the difference between digital and electronic signatures, their associated technology, how they work, and which one is better? Read ahead to find out more!

What Is A Digital Signature?

A digital signature is a type of electronic signature that uses a technology called Public Key Infrastructure (PKI). PKI is a secure technology that uses advanced, high-security digital certificates and cryptographic keys to create specific digital signatures.

What Is An Electronic Signature?

An electronic signature is considered in electronic form to be a sound, symbol, or process related to a specific contract or other record performed to sign the record.

Currently, electronic signature is used widely. In most legal documents, agreements, or any documents, you will notice a section where you can sign using your name or anything equivalent. By signing electronically, you agree to follow the terms and conditions listed in the documents.

E-signatures are fast, easy to use, and widely adopted worldwide. Unlike digital signatures, they don't require specific verification or technical details.

What Is The Difference Between An Electronic And Digital Signature?

Let's understand the different aspects of electronic and digital signatures.

#1. The Purpose

What is the primary purpose of using electronic and digital signatures? That's the key difference you need to know.

Digital signatures help ensure that documents are not modified, forged, or tampered with. Therefore, they offer a high level of security verification and authenticity.

On the other hand, an electronic signature ensures the signer follows the terms and conditions mentioned in the agreement or contract. Therefore, the electronic signature acts as evidence of agreeing to the terms and conditions mentioned in the document.

So, which one should you choose? The type of signature you must select may vary depending on your purpose. However, both signatures ensure authenticity and legitimacy and are legally binding based on the document.

#2. How Is It Created?

The contract parties create an electronic signature to sign the document or contract. The document can be in Word or PDF files, and the signature section can be integrated accordingly.

Digital signatures can be made using specific software and algorithms. As discussed above, this is related to Public Key Infrastructure (PKI) technology. Therefore, two keys, namely private and public keys, are created and verified accordingly.

#3. Common Use Cases

The use cases between electronic and digital signatures vary.

The following are the common use cases electronic use cases:

• Business contracts: They help establish effective business contracts, build legally binding relationships, and agree with the terms set by the other party.
• Employee onboarding: Speeds up signing offer letters and HR documents.
• Customer agreements: Facilitates quick approvals for terms and policies.
• Sales transactions: Streamlines closing deals and signing purchase orders.
• Lease agreements: Ensures secure and efficient signing of rental contracts.

The following are the everyday use cases of digital signatures:

• Certification authorities: It helps validate and verify digital documents.
• Trust service providers: Offers secure signing services and identity verification.
• E-Government services: Secures applications, tax filings, and official correspondence.
• Financial transactions: Protects loan agreements and payment authorizations.
• Healthcare: Ensures confidentiality in medical records and prescriptions.

#4. Validation Process

Electronic signatures don't consist of any standard validation process. However, when a document uses a digital signature, you must verify the user's identity and use related technology and cryptography to bind the digital certificate.

#5. Standard Of Security

Digital signatures are more secure than electronic ones because they cannot be tampered with or altered. They also help verify the other party's authenticity, use cryptographic encryption methods, and identify who signed, making them the most secure signature type.

Apart from that, if you need to ensure security and authenticity in the electronic signature, you need to use reliable software to get guaranteed by default. Since electronic signatures do not meet the exact stringent requirements of digital signatures, their level of security varies.

#6. Easy To Use

Which type of signature is easy to create? When considering digital and electronic signatures, an electronic signature is more accessible to create and send than a digital signature.

However, digital signatures consist of a strict process, security mechanisms, and rules. Therefore, they are more complex and challenging to create instantly than electronic signatures.

#7. Benefits

Digital and electronic signatures have plenty of benefits. Let's discuss one by one!

The following are the key benefits of using digital signatures:

• Cost-effective approach: A digital signature is cost-effective in getting approval from the other party if there are travel and other considerations for the signer.
• Saves time: Digital signatures help save time by quickly signing the necessary documents and easily sharing them for verification. Moreover, since they ensure security, they reduce transactions or other delays.
• Enhance security: Since digital signatures use advanced technologies such as cryptographic elements and keys for verification, they ensure protection for both parties. Therefore, fraud, risks, tampering, and such situations can be prevented.
• Environmental sustainability: In a digital signature process, you don't need to spend on any costs related to paper, printing, ink, or even postage. Therefore, it is one of the most cost-effective environmental sustainability approaches you can implement.
• Enhanced user Experience: Digital signatures are user-friendly, as the signer can take time to review the documents peacefully. The signer can also sign anywhere at any time, and all they need is a good internet connection and a proper device.

The following are the key benefits offered by using electronic signature:

• Supports signing instant remotely: One of the main advantages of electronic signature is that you can sign by being wherever and whenever instantly with no hassle.
• Ability to automate processes: Tools exist that take a step-by-step approach to document signing, reviewing, and approval. Therefore, the signer can carefully review each section and sign in real-time.
• Reduce e-signature application errors: According to Forrester's research, e-signature applications have fewer errors in signed documents, an average of 80%.
• Ability to reduce cost: An e-signature signing process does not involve paper, pen, or logistics expenses and helps to reduce costs.
• Improves security: When you use effective tools, they support verifying your identity and have an authentication process before letting you sign on the document.

What Are Digital And Electronic Signature Examples?

Here are some key examples of digital signatures:

• Email authentication: When digital signatures are attached to emails, they help to verify the sender's identity and message integrity effectively.
• Document signing: This is used to establish secure contracts and legal documents online.
• Code signing: It helps to validate through software and ensures the signature has not been tampered with.
• SSL/TLS certificates: Using digital signatures protects website data and user interactions.
• Blockchain transactions: Digital signatures in blockchain transactions help to confirm secure and irreversible exchanges.

Next, here are some key examples of electronic signatures:

• Typed name: When a name is typed at the end of an email or form, it can be a form of electronic signature.
• Drawn signature: You can even draw a signature with a finger or stylus on a document's screen.
• Click-to-sign: There are also digital signatures that confirm the agreement through a button or checkbox.
• Biometric-based: Electric signatures can also be generated using biometric characteristics such as facial recognition, and fingerprints.
• Digital pad signing: Electronic signatures can also be placed using physical signing on an electronic pad.

Is A PDF Signature An Electronic Signature?

Yes, a PDF signature can be electronic, but it depends on how it is generated. However, you can also add a digital signature to a PDF, whereas a digital certificate or ID should recognize it as a digital signature.

However, creating an electronic signature in a PDF can be done quickly and easily. Moreover, digital signatures provide more secure signing and help ensure identity for security purposes.

Are Digital Signatures Legal?

Yes, digital signatures are legally binding. Moreover, many laws and authorities provide authenticity and approval for digital signatures. These include the eIDAS Regulation in the European Union and the Global and National Commerce (ESIGN) Act in the United States. However, remember that there are distinct types of digital signatures, each with special recognition and weighting.

For example, you cannot deny or pose any dispute for a Qualified Electronic Signature (QES) as it provides evidence that it is uniquely related to the signer's identity.

Final Thoughts

In conclusion, there is a vast difference between digital and electronic signatures regarding purpose, technology, use cases, user-friendliness, and more. Therefore, you must choose the ideal signature type depending on your requirements.

We hope this guide helped you understand the difference between digital vs electronic signatures!