Do you think electronic signature and digital signature are the same? You may have used these two terms interchangeably but these are not the same. Let’s have a deep look at the difference between e-signature and digital signature i.e. digital signature vs electronic signature.
In this fast-changing digital world, companies have been increasingly adopting automation techniques and strategies to pace up their work productivity. Foolproof and trustworthy work ambience is the need of the hour.
At this outset, physical signatures come with its own set of limitations in the form of susceptibility to forging, low durability, poor access, etc. Hence, the digital signature and the electronic signature has turned out to be a savior by bringing in much-needed automation and throughput efficiency.
The terms electronic signature and digital signature are often considered the same and thus, used interchangeably. But the fact is that digital signature and electronic signature are two different concepts. So, in this article, we’ll discuss the difference between a digital signature and electronic signature i.e. digital signature vs electronic signature.
Before discussing the differential factors, we’ll understand what is a digital signature and electronic signature first.
Understanding the Terms: Digital Signature vs Electronic Signature
A digital signature is a mechanism by which transactions like contracts, bond agreements, business ventures, etc. are authenticated and secured. It involves the use of a unique, authentication key visible only to the sender and the receiver. It ensures tamper-proof transactions involving sensitive documents. In the world of increasing cyber-attacks, a digital signature could be the one-stop avenue to ensure long term safety and security.
Electronic signature is used in place of physical signatures to bring in authentication in a consistent and hassle-free manner. It could be considered as a superset out of which the digital signatures are derived. E-signatures often comes with a legal standing based on the geography of operation. Geographical security additions are inculcated in tune with the unique challenges confronting a particular region.
The main difference between digital signature and electronic signature is where they are used. An electronic signature is mainly used to sign the electronic documents where the signatory has got an intention to sign the document with his e-signature. On the other hand, a digital signature is used to secure the documents and it is used by the certification authorities.
We’ll cover the difference between digital signature and electronic signature in detail but let’s first dive into their history to understand them better.
History: Digital Signature vs Electronic Signature
The history of digital signature and electronic signature goes back to the 1970s. Whitefield Diffie and Martin Hellman conceptualized the basic idea of a digital signature. It was followed by the creation of an RSA algorithm to implement the first digital signature.
The year 1989 proved to be a landmark year for digital signatures. Lotus 1.0, the software used to create a digital signature was made public. Going ahead, digital signature and electronic signature were given legal status with the passing of the ESIGN Act in the year 2000. With the coming of PDFs, insertion of digital signatures into a document became simple and hassle-free.
In the year 2002, SIGNiX became popular as the well sought after software for producing a digital signature. While the year 2008 was a year of recession, it also proved to be a landmark year for digital signature and electronic signature. Digital signatures were given the status of an open standard for PDFs.
Further, digital signature and electronic signature got a much needed secure market in the EU since 2016 with the introduction of eIDAS. The market for electronic signature and digital signature is poised to see massive growth with quadrupled output by 2020.
The Operational Flow: Digital Signature vs Electronic Signature
Imagine going through the hassle of waiting for long hours to send across your signature, just to obtain a bank loan? Wish you had avoided the unnecessary travel time? How about authenticating your salary slip with just the click of a button? If these automation amaze your intellect, you have been mesmerized by the power of digital signature and electronic signature.
Digital signature and electronic signature makes use of the basic technique of cryptography. The exact technique used by both is different, let’s understand that.
Digital signature uses the concept of public key cryptography. It makes use of a public key algorithm, for example, RSA, to generate two keys that are linked mathematically – public and private. In doing so, a sender generates a private and public key. He uses his own private key to encrypt and transmit his signature message.
The message can only be decoded at the receiver’s end by using the public key. There exists inbuilt mechanisms to decode events of data corruption, tampering, misalignment, etc. This is how digital signatures are authenticated.
On the other hand, electronic signature works in a different way, that is even simpler. The sender creates an online document or contract. He shares that with the signatory via email to order to invite the signer to access and sign the document. The signer receives the document, access it, review it, and sign with the document.
The process of e-signing the document with an electronic signature solution, automatically makes the document compliant with the electronic signature standards like ESIGN and UETA Act. It ensures that the document can’t undergo any unauthorized changes once it is signed. Then, the document/ contract is shared with the sender and the process is completed.
Throughout the workflow, the audit is offered to generate an audit trail. You can look back and check if the process works well.
Features: Digital Signature vs Electronic Signature
Though the underlying technology of both digital and electronic signature is the cryptography, it comes with its own set of subtle differences in terms of features. The E-signature vs digital signature debate touches upon a lot of parameters like the authorization authority, targeted use, security traits, reliability and quality of standardization.
1. Purpose of Use
The purpose for which these electronic signatures and digital signatures are used makes a big difference. The main purpose of using a digital signature is to secure the document while an electronic signature is used to verify a document.
2. Types
There are different types of electronic as well as a digital signature. A digital signature is generally used to secure the document. On the basis of document processing platform, the digital signatures can be of two types – Microsoft and Adobe PDF. On the other hand, the electronic signature can be in the form of a sound, symbol, process, scanned image, etc. There are four types of electronic signature – basic electronic signature, click-to-sign signature, advanced electronic signature, and qualified signature.
3. Regulation
A digital signature is regulated by the certification authority while there is no authority to verify the electronic signature. Though there are some national acts and regulations such as UETA act, ESIGN act in the United States, that recognizes the electronic signature and makes them legal.
4. Authorization Authority
Firstly, digital signatures are authorized mainly by government authorities. This could take the form of KYC (Know your customer) verification for banks, driver’s license or voter’s id issuance, etc.
On the other hand, electronic signatures are mainly issued by individuals like vendors for specific purposes like contracts for a business venture, inter-company partnerships, etc.
In other words, digital signatures are used to authenticate generalistic and public interest documents, unlike e-signatures which take a customized format. Electronic signatures are individual specific as they have been formulated by an individual with the sole interest of authenticating their signature, thereby their individual transaction.
5. Intention
The main intention of using a digital signature is the same as its purpose of use. A digital signature is used to secure a document so it could remain safe and can be protected from the unauthorized people. A digital signature is authenticated by the owner of the document.
The intention of using an electronic signature is to sign a document and verify that. An electronic signature is used when two or more people are involved in a contract and they sign a document to show their commitment. Both the electronic signature and digital signature acts as a legal binding between the participants.
6. Security
A digital signature and electronic signature both are comprised of many security features. So, considering digital signature vs electronic signature, a digital signature is more secure than the electronic signature. An electronic signature involves fewer security features, just to make sure that the document couldn’t be used and altered after signing without consent and permission of the sender.
As electronic signature is used to sign a contract, businesses are readily adopting electronic signature to deal with clients, vendors, and even employees. You should know the reasons to adopt electronic signature for your business.
7. Verification
A digital signature can be verified to authenticate the original author. It can be verified if the original document has not been tampered with, by any unauthorized access. As the electronic signature is not certified, it is difficult to check and verify the owner of the document. But an electronic signature comprises of integrity as well as the authenticity of the document.
8. Signatory Details
The digital certificates which represent the individual signatory, can be used to get the details of the person signing the document such as his name, email address, etc. As these individual details are tied to the document signature through the digital certificate.
On the other hand, the details of the signatory are not held in the electronic signature itself. Instead, if the details of the person who signs a document with an electronic signature are required, the signatory needs to place that detail separately to the signature.
9. Audit Logs
Digital signatures can hold the audit logs i.e. details of the events to know when the digital signature was applied. In some advanced digital signature products, the audit trail feature is added that can send the notification alerts if the log is changed or tampered with. On the other hand, it is not easy to apply audit logs to the electronic signature but some electronic signature products have started offering it.
10. Time-stamped
The electronic signature can have date and time associated with the signature but this detail is held separately to the signature. Digital signatures are always time-stamped. This is very useful in case of legal formality to tie a person to a signature at a particular date and time.
11. Reliability
Digital signatures are more reliable due to the detailed record of events associated with its signature trail. Starting from the time stamp; information of the signee including address cum work details; to the minute details triggering tampering alerts, digital signatures comes as a comprehensive package.
On the other hand, electronics signatures have both the time and date stamp arranged in a delinked fashion. Hence, it becomes more susceptible to tampering. Also, the process of tying a person’s details to his signature becomes highly complicated and cumbersome leading to further meddling with data. Lastly, the use of audit logs for an electronic signature is highly subjective and cumbersome.
12. Quality of Standardization
A digital signature uses a highly advanced form of standardization known as Public Key Infrastructure (PKI). PKI is the basic mechanism used to create encrypted digital certificates to be used for an authentication operation. The creation of both a private and public key by the sender ensures that there is a foolproof end to end data transmission.
On the other hand, in case of an electronic signature, the authentication does not come with complete fool proofing. The keying mechanism is not at an advanced stage as compared with the digital signature. Hence, in the e-signature vs digital signature debate, an electronic signature is prone to third-party meddling at different stages of its operation.
The table below will give you a quick look at the differences between a digital signature and electronic signature i.e. digital signature vs electronic signature
Digital Signature vs Electronic Signature |
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| Parameter |
Digital Signature |
Electronic Signature |
| Purpose of Use | Digital signature is used to secure a document. | An electronic signature is used to verify a document. |
| Types | On the basis of document processing platform, a digital signature is of two types – Microsoft and Adobe pdf. | An electronic signature is of four types – basic electronic signature, click-to-sign signature, advanced electronic signature, and qualified signature. |
| Regulation | A digital signature is regulated by the certification authority. | Some national acts and regulations are applied to the electronic signature to validate it. |
| Authorization | Digital signatures are authorized by the government or non-government certification provider authority | Electronic signatures are authorized by the specific vendors, document creator or the participating parties. |
| Intention | The main intention of using a digital signature is to secure the document. | The main intention of using an electronic signature is to verify the document. |
| Security | A digital signature is comprised of more security features, so it is more secure. | An electronic signature is comprised of less security features, so it is less secure. |
| Verification | A digital signature can be verified to authenticate the original author. | As the electronic signature is not certified, it is difficult to check and verify the owner of the document. |
| Signatory Details | A digital signature can be used to get the details of signatory details as it is associated with the signature itself. | The details of the signatory are not held with the electronic signature but can be held separately to the signature. |
| Audit Logs | Digital signature generally holds the audit logs and helps to track when the changes are made in the document. | It is difficult to apply audit logs with the electronic signature. But some electronic signature solutions may provide this. |
| Time-stamped | Digital signatures are always time-stamped i.e. have a date and time associated with the digital signature. | Electronic signatures can be time-stamped which is very good for the legal binding. It will tie the signature with date and time in legal formalities. |
| Reliability | Digital signatures are more reliable as these are more secured and not susceptible to tampering. | Electronic signatures are less reliable as these are less secured and may be susceptible to tampering. |
| Quality of Standardization | A digital signature uses a highly advanced form of standardization known as Public Key Infrastructure (PKI) | The keying mechanism is not much advanced in case of the electronic signature. |
Way Ahead? – Future of Electronic Signature and Digital Signature
So, here we have reached the end and understood that the terms digital and electronic signatures are used interchangeably but these are actually different. The electronic signature is an electronic or say digital form of the handwritten signature with a legal binding.
On the whole, digital signature and electronic signature has offered a new lease of life to businesses and governments alike. From the developed to the developing world, automation has been bringing in a new wave of change. Be it signing of business contracts or G2B or G2C transactions, electronic and digital signature has aided and abetted its growth.
On the basis of the type of document and considering the above differences between electronic signature and digital signature, it is generally decided which one to be used. So, understand the differnece by going through digital signature vs electronic signature and make a right choice for your document.
