Difference Between Digital Signature and Electronic Signature: Key Comparisons

The main difference between a digital signature and an electronic signature lies in their level of security and the underlying technology they utilise. A digital signature employs cryptographic methods. It involves unique key pairs, to ensure the authenticity and integrity of a document. On the other hand, an electronic signature encompasses various methods, such as typing a name or clicking a button, for consent or agreement.

Signing documents online is not always considered safe and legal in all countries. Knowing the difference between digital signature and electronic signature is crucial from the perspective of cybersecurity. It also helps businesses that use enterprise solutions.  

A digital signature is a type of electronic signature. But the former offers higher security than the latter due to the implementation of tamper-proof technology and algorithms. If you are looking for more answers to why one matters more than the other, keep reading. 

Difference Between Digital Signature and Electronic Signature

Here are the main areas of difference. 

Aspect	Digital Signatures	Electronic Signatures
Authentication	Uses keys to verify the signer’s identity.	May use typing or clicking for identity.
Security	Strong security with cryptography.	Security varies, vulnerable to threats.
Legal Validity	Governed by laws like Information Technology Act 2000	Recognition varies across areas.
Complexity	Complex setup, needs expertise.	User-friendly, less tech knowledge.
Costs	Initial setup & maintenance costs high.	Cost-effective, cuts printing costs.
Non-Repudiation	Strong non-repudiation, no denials.	Some non-repudiation, not as strong.
Usage	Legal, finance, healthcare sectors.	Wide range of industries, everyday use.
User-Friendly	Complex, needs knowledge.	Simple, suits different preferences.
Signature Types	Cryptographic using keys.	Various types like clicks, typing.
Security Concerns	Resistant to tampering.	May lack robust protection, hacking.
Geographical Scope	International legal recognition.	Recognition varies globally.
Physical Presence	Not required for validation.	Sign from remote locations.
Document Types	Critical documents need security.	Everyday documents, less secure.
Long-Term Validity	Secure over extended periods.	Less assurance over time.

Exploring the Concept of Digital Signature

A digital signature is the equivalent of a handwritten signature or, better, an electronic fingerprint. It is based on a mathematical algorithm, commonly called asymmetric cryptography (public key cryptography).

How Digital Signatures Work

It binds a signer’s identity to an online document in a way that cannot be forged. This is created using a Public Key Infrastructure (PKI) offering private and public keys. The private key is a unique number that only the signer knows. Then the public key is available to anyone who wants to verify the signature.

To explain it further, let’s look into the interrelationship between the private and public keys. 

When the signer creates a digital signature, they use their private key to encrypt a hash of the document. The hash is a unique value created by converting the document into a string of numbers and characters. The encrypted hash is then attached to the document.

When the document recipient wants to verify the signature, they use the signer’s public key to decrypt the encrypted hash. If the hash can be decrypted, the signature is valid and the document has not been tampered with.

Other than private and public keys, PKI has some other elements to consider.

• Certificate authority (CA): A CA is a trusted third party that issues digital certificates.
• Registration authority (RA): An RA is a trusted third party that helps users register for digital certificates.
• Digital certificate: A digital certificate is an electronic file that binds a public key to a specific user or device.
• Hash function: A hash function is a mathematical algorithm that creates a unique value from a piece of data.
• Timestamp: A timestamp records the time and date that a particular event occurred.

What is an Electronic Signature?

Electronic signature covers a broader spectrum under which digital signature is a part. 

Signatory methods here range from click-to-sign to typed names. 

Yet, it’s not just the variety that defines electronic signatures. It’s their legal recognition too. In Europe, laws such as the UETA (Uniform Electronic Transactions Act) and eIDAS (electronic Identification, Authentication and trust Services) have given electronic signatures with the same legal weight as physical signatures.

Types of Electronic Signatures

Here are some types and examples. 

Type of Electronic Signature	Description and Method	Examples
Click-to-Sign Signatures	Users indicate their consent by clicking a designated button.	Accepting terms of service on a website, confirming an online purchase.
Typed or Typed-Drawn Signatures	Signers type their name or provide a handwritten-style input.	Typing one’s name in an email, signing documents using a stylus on a touch screen.
Biometric Signatures	Incorporate biometric data like fingerprints or retina scans.	Using a fingerprint to unlock a smartphone or authenticate a banking app.
Voice Signatures	Spoken words are used as a form of signature.	Voice-activated commands on smart devices or using voice recognition for authentication.
Digital Certificates	Certificates issued by trusted authorities, combining cryptography and signatures.	SSL/TLS certificates for secure website connections, document signing with PGP certificates.
QR Code Signatures	A QR code directs recipients to a server to verify details upon scanning.	Scanning a QR code on a mobile app to confirm a payment or verify a digital receipt.
Token-Based Signatures	Hardware or software tokens generate unique codes for signing.	Using a security token to access a secure system or generate a one-time password.
Email Signatures	Simple inclusion of name, title, and contact information in emails.	Adding your name, title, and contact details at the end of an email.
Advanced Electronic Signatures	Meet legal requirements for security and authentication.	Signing official documents using a qualified electronic signature under eIDAS.
Remote or Online Signatures	Enabled by remote signing platforms, allowing signatures from any location.	Signing a contract using an online platform like DocuSign or Adobe Sign

 

When to Use Digital Signature vs Electronic Signature or Vice-Versa?

The decision of whether to use an electronic signature or a digital signature depends on two factors.  

• Type of specific document 
• Level of security required

Electronic signatures are generally used for documents that do not require a high level of security. These can be contracts between businesses or contracts with consumers. They can be created using a variety of methods, such as typing your name, uploading an image of your signature, or using a signature pad.

Digital signatures are more secure than electronic signatures because they use cryptography to ensure that the signature cannot be tampered with. They are often used for documents that require a high level of security. Contracts with financial institutions or government agencies require a digital signature. 

Authentication and Identification in Digital Signature vs Electronic Signature

Digital signatures authenticate the identity of the signer through cryptographic mechanisms. Electronic signatures, too, provide a means of identification. However, the techniques differ. 

Digital signatures rely on public and private key pairs, whereas electronic signatures may rely on email addresses or other unique identifiers.

Legal Validity and Compliance in Digital Signature vs Electronic Signature

The legal terrain paints a unique picture for both types of signatures. Digital signatures find their sanctuary in laws such as the Information Technology Act 2000. While electronic signatures are fortified by the UETA. Understanding the legal nuances is essential to ensure compliance with the respective laws governing these signatures.

Implementation and Usage in Digital Signature vs Electronic Signature 

The implementation of digital signatures requires a solid technological foundation. Public and private keys, certificates, and encryption protocols pave the way for a secure journey. In contrast, electronic signatures are more accessible. A mere click or a typed name can seal the deal, making them more user-friendly. 

Industries like finance and healthcare often embrace digital signatures for their robust security. While sectors such as e-commerce and everyday online interactions thrive on the ease of electronic signatures.

Pros and Cons of Digital Signatures

Advantages of Digital Signatures	Disadvantages of Digital Signatures
Digital signatures provide robust security. They prevent unauthorised alterations of documents and ensuring the signer’s identity.	The intricacies of cryptographic knowledge can create challenges for those less familiar with the technology.
Digital signatures ensure signers cannot later deny their endorsement of a document.	Implementing digital signatures may require a complex setup involving public and private key pairs, which can be intimidating for some users.
They establish the integrity of the signed document through cryptographic means.	Setting up the infrastructure for digital signatures can involve initial costs for acquiring necessary tools and technologies.
Digital signatures authenticate the identity of the signer using cryptographic techniques.	Ongoing maintenance and updates to ensure security can lead to additional expenses.

Pros and Cons of Electronic Signatures

Advantages of Electronic Signatures	Disadvantages of Electronic Signatures
Electronic signatures offer unparalleled convenience by simplifying the signing process and overcoming geographical barriers.	The susceptibility of electronic signatures to online threats raises concerns about document and data security.
They lead to significant cost savings by eliminating expenses related to printing and postage.	The legal acceptance and recognition of electronic signatures can differ across jurisdictions, potentially causing ambiguity.
Electronic signatures reduce the time needed to finalise transactions.	Relying on technology for electronic signatures can be a drawback if systems or devices fail.
They allow remote signing.	The absence of physical presence and handwritten signatures may detract from the personal touch.
Electronic signatures contribute to a paperless environment, supporting eco-friendly initiatives.	Some individuals might not be comfortable with or accustomed to using electronic signatures.