What is the Difference Between Digital Signature and Electronic Signature?

🆚 Go to Comparative Table 🆚

Digital signatures and electronic signatures are both methods used to sign documents electronically, but they have different functions and levels of security. Here are the main differences between the two:

  1. Technology and Infrastructure: Electronic signatures are created and added to contracts by individuals and teams signing or marking the document in some way, such as a scanned image of a handwritten signature, a typed name, or a recorded voice. Digital signatures, on the other hand, are created by software and algorithms, using cryptographic technology to create a unique digital fingerprint of the document.
  2. Security and Authentication: Digital signatures are considered more secure than electronic signatures because they provide better guarantees about the identity of the signer and the integrity of the document. Electronic signatures can be more easily forged or replicated, whereas digital signatures use rigorous data encryption, two-factor authentication, and time stamps to ensure the document's authenticity and the signer's identity.
  3. Legal Framework: Electronic signatures are legally binding and are covered by various laws and regulations, such as the Electronic Signatures in Global and National Commerce (ESIGN) Act in the United States. Digital signatures, while also legally binding, often hold more weight in legal disputes due to their advanced security and authentication measures.
  4. Use Cases: Electronic signatures are commonly used in business contracts, employment offers, invoices, and purchase orders. Digital signatures are typically employed in situations where more stringent security and compliance requirements are necessary, such as in highly regulated industries or for sensitive documents.

In summary, electronic signatures are a broader category of methods for signing documents electronically, while digital signatures are a specific type of electronic signature that offers enhanced security and authentication through cryptographic technology.

Comparative Table: Digital Signature vs Electronic Signature

Here is a table comparing the differences between digital signatures and electronic signatures:

Feature Electronic Signature Digital Signature
Definition An electronic signature is a digital form of a wet ink signature that is legally binding and secure. It can be a symbol, image, or process attached to a message or document to recognize the identity and indicate consent. A digital signature is a type of electronic signature that uses cryptography to secure and validate the legitimacy of a document.
Purpose Electronic signatures are generally used for less critical documents, such as offer letters, consent forms, and other documents that do not require a high level of security. Digital signatures are often used for high-value transactions, such as signing government contracts, financial agreements, and other documents that require a high level of security.
Security Electronic signatures provide a convenient way to sign documents without having to print them, physically sign them, and then scan or mail them back. However, they are generally considered less secure than digital signatures. Digital signatures require specialized software and rely on public key infrastructure (PKI) to authenticate the e-signature on a document. They are considered more secure than electronic signatures due to their cryptographic nature.
Creation Electronic signatures can be created using basic tools such as a mouse, touchpad, or stylus. Digital signatures are created using a digital certificate, which is issued by a certification authority.
Validation The validation of electronic signatures is performed by the signer's corporate ID, phone PIN, etc. The validation of digital signatures is performed by trusted certificate authorities.

In summary, electronic signatures are simpler and more accessible, while digital signatures are more secure and provide a higher level of assurance that the signature is genuine. Understanding the differences between these two methods is important for businesses and individuals when deciding which type of signature to use for a particular document or transaction.