Electronic Signature vs Digital Signature: Which One Should You Use?
Electronic Signature and digital signatures are often used interchangeably, but they are not the same. Yes, you read it right! However, these both serve the same general purpose, but there are some technical and legal differences between Digital Signature and eSignature.
Whether it’s a contract, agreement, or simple consent form, it has become essential for businesses to use a secure and legal way to sign documents online. So, what’s the difference between an Electronic Signature and a digital signature, and which one should you choose for your next online agreement??
By understanding the key difference between these two options, you can make the right decision for your business needs. Keep reading to find out which online signature offers more legal protection, security, and peace of mind
What is an Electronic Signature Online?
An Electronic Signature (also known as e-signature) is any digital symbol or process that signifies agreement or approval of a document. This can be as simple as typing your name at the end of an email, clicking an “I Agree” button, or using a stylus to draw your signature on a touch screen.?
The key to eSignature is that the signature is used to acknowledge consent or agreement to a document, and it doesn’t require a special encryption method.?
Examples of Electronic Signatures:
What is a Digital Signature?
Unlike the Electronic Signature Services, a digital signature is a more advanced and secure type of signature. It uses cryptography so it can ensure that the signature is unique and no one can alter the document after it is signed. Digital signatures are based on a mathematical algorithm and rely on a public key infrastructure (PKI) system to work. The digital signature not only confirms the identity of the signer but also ensures the integrity of the signed document.
When you sign a document with a digital signature, a special code is created that is linked to the document’s content.?
Examples of Digital Signatures:
Electronic Signature vs Digital Signature
Here's a comparison table highlighting the differences between Electronic Signature Services and Digital signatures.
Feature
Electronic Signature
Digital Signature
Definition
A broad term that refers to any electronic method of signing a document or agreement.
A specific type of electronic signature that uses cryptographic techniques for authentication.
Technology
This may include scanned images, typed names, or click-to-sign actions.
It often uses public key infrastructure (PKI) and encryption algorithms.
Security
Security may vary depending on the method used (e.g., email, image file, etc.).
Highly secure, as it involves cryptography to ensure authenticity and integrity.
Authentication
May rely on user intent or consent, but not necessarily verified.
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Verifies the identity of the signer through encryption and key pairs.
Legal Status
Generally accepted in many jurisdictions, but may lack strong verification in some cases.
Legally recognized in many countries due to its cryptographic security.
Integrity
May not provide complete guarantees of document integrity.
Ensures document integrity through hashing and encryption.
Use Cases
Non-sensitive agreements, contracts, or simple forms.
Sensitive documents, legal contracts, financial transactions, and government filings.
Examples
A scanned signature, typing the name, and clicking the "I agree" checkbox.
Digital signatures using software with encryption.
Key Differences Between Electronic Signature and Digital Signatures
While both signatures serve similar purposes of proving consent, there are a few key differences that set them apart:
Technology and Security
Electronic Signature Services are less secure and it does not require any advanced technology. If you are using simply a typed name or image of a handwritten signature, someone can easily forge them.?
These are highly secure because they rely on cryptographic algorithms to ensure both authenticity and document integrity. A digital signature is virtually impossible to forge without access to the signer's private key.
Verification
An e Signature Online is used to confirm the identity of the document. However, it does not verify the integrity of the signer and the authenticity of the document. If you are a business that often needs to deal with sensitive documents then you can use Aadhaar eSign. It helps you to ensure the authenticity of the documents as well.
If we look at the digital signature, these not only verify the signer’s identity but also ensure that the document hasn’t been changed after being signed. It offers a higher level of trust and verification.
Legal Validity
eSign services are legally valid in India, this allows businesses to use Electronic Signature for signing official documents as well. However, their strength in court can vary depending on the jurisdiction and the type of document. For example, a typed name on an email may not hold up in a legal dispute if there's no evidence to support the signature.
On the other hand, Digital signatures are widely accepted in legal settings because of their higher security and integrity. They are often the preferred choice for sensitive and important documents, such as contracts and government forms.
Conclusion: Which One Should You Use?
Deciding between an Electronic Signature and a digital signature depends on your specific needs. If you need a simple, fast way to sign a document and security isn’t a top concern, an eSignature will likely be enough. However, if you are dealing with sensitive information or need the highest level of security, then a digital signature or Aadhaar-based eSign can be a better choice for you.
Ultimately, both signatures are legally recognized and offer a convenient and secure way to sign documents. If you are still in doubt about which one you should go with, you can connect to and schedule a demo with our eSign experts. We will help you assess your needs and recommend the best one for your business.
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