However, when you talk about these terms in relation to signatures, digital signatures and electronic signatures mean two very different things. In the most basic level, all digital signatures are signatures in electronic form. There are various methods by which a document can be authenticated with the use of signatures. A digital signature is a mathematical system that denotes the authenticity of a digital document. It does not necessarily have to look like a traditional signature with letters or scribbles, but it is more like a badge that is affixed onto a document. This badge certifies that the document was not altered before it was sent. These badges are very important to businesses that make transactions for software delivery, payments and documents that should not be tampered or forged.
An e signature, on the other hand, is a broad term that covers any sort of mark or badge that has the intent of authenticating a document. In many countries around the world, these signatures actually carry legal significance and have the same weight as handwritten transactions. However, electronic badges are not necessarily encrypted like digital ones.
A digital signature uses asymmetric cryptography and, just like handwritten signatures, is very difficult to forge. If a signature is cryptographically created, then it must be affixed to a document properly for it to actually matter. Both digital and electronic signatures provide the signer non-repudiation, especially if a special key is required to access the signature. That means that the signer cannot really claim that he did not sign the document because he is the only one who knows the private key. Some non-repudiation formats have a time stamp for the digital signature. If the private key is made known or leaked out, the time stamp will be able to determine if the signature was valid at the time it was created.
Electronic and digital signatures may be created as a bitstring like in email, digital contracts and other messages sent over an encrypted protocol.
Individuals or businesses who want to try using an electronic signature often wonder whether or not these forms of authentication are legally binding. In the United States, for example, they are legal as long as they were affixed using a process that clearly shows that the signer had the intention of signing the document. The signatures in electronic form must also be compliant to the Electronic Signatures in Global and National Commerce Act of 2000 and the Uniform Electronic Transactions Act. These two acts have been adopted by most states in the US. All signatures in electronic form are legally binding and are audited regularly.
Electronic or digital signatures, no doubt, will make your business processes more effective. It streamlines your processes and makes them run more smoothly. No more countless exchanges of documents to sign, scan and review. All these can be done automatically. Using an e signature is a good idea for offices that want to go completely paperless to help the environment and cut costs.
I was wondering that both these terms digital and electronic signatures are same. This article has cleared my concept about these two concepts which seems to be similar but are different things. Thanks.
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