Electronic vs Digital Signature: Difference and Comparison

Key Takeaways

1. Nature: Electronic signatures encompass any electronic mark, while digital signatures use cryptographic techniques for security and authentication.
2. Security: Digital signatures offer higher security through encryption and verification, while electronic signatures may vary in their level of security.
3. Legal Acceptance: Digital signatures have stronger legal standing, especially for secure transactions, while electronic signatures may have broader acceptance depending on the jurisdiction.

What is Electronic Signature?

An electronic signature, also known as an e-signature, is a digital representation of a person’s signature used to sign documents electronically. It can be a scanned image of a handwritten signature or a digital signature created using electronic signature software.

Electronic signatures are legally binding in many countries and can be used to sign various documents, including contracts, agreements, and forms. They are used to save time and increase efficiency in business transactions, as they eliminate the need for physical signatures, mailing, and manual processing.

What is Digital Signature?

A digital signature is a cryptographic method to verify the authenticity and integrity of digital documents or messages. It is a type of electronic signature based on a mathematical algorithm that encrypts the signature data, making it unique and tamper-proof.

The digital signature is linked to the signer’s identity. It can authenticate the document or message, ensuring that it has not been altered or modified since it was signed. Digital signatures are widely used in various industries, including finance, healthcare, legal, and government, to provide secure and reliable authentication of electronic documents and transactions.

Difference Between Electronic and Digital Signatures

1. The main difference between electronic and digital signatures is the technology used to create them. Electronic signatures are created using various methods, such as typing your name or an image of your signature. In contrast, digital signatures are created using encryption and cryptographic methods.
2. Digital signatures offer a higher level of security compared to electronic signatures. Digital signatures use encryption technology to secure the signature and ensure the integrity of the document or message. In contrast, electronic signatures can be more susceptible to fraud or forgery as they are less secure.
3. While electronic and digital signatures are legally binding, digital signatures are considered to have a higher legal standing. This is because digital signatures use encryption technology that can be traced back to the signer, making it more difficult to dispute the signature’s authenticity.
4. Certain industries or jurisdictions may have specific regulations or requirements for electronic and digital signatures. Ensuring that any signature method complies with applicable regulations and standards is important.
5. Electronic signatures can be created with minimal cost and effort, while digital signatures may require additional tools or software, increasing the cost. However, digital signatures’ added security and legal standing might justify investing in certain industries or transactions.

Comparison Between Electronic and Digital Signature

Parameters of Comparison	Electronic Signature	Digital Signature
Method of creation	Electronic signatures are less secure and more susceptible to fraud or forgery.	Created using encryption and cryptographic methods.
Tamper-proof	Can be created using a wide range of methods, such as typing your name or using an image of your signature.	Digital signatures are tamper-proof and offer a higher level of security.
Authentication	Electronic signatures can be more susceptible to fraud or forgery as they are less secure.	Digital signatures are linked to the signer’s identity and can be used to authenticate the document or message.
Verification	Electronic signatures can be verified by comparing them to a known signature, but this can be subjective and may not be as reliable.	Electronic signatures may require additional authentication methods to verify the signer’s identity.
Usability	Electronic signatures are easy to use and can be created with minimal cost and effort.	Digital signatures may require additional tools or software, which may increase the cost, but offer added security and legal standing.

References

1. https://scholarship.richmond.edu/jolt/vol11/iss2/3/
2. https://www.sciencedirect.com/science/article/pii/S0167923607000747

Last Updated : 14 July, 2023