The Confusion Explained
The terms "digital signature" and "electronic signature" are often used interchangeably, but they're actually different things with different levels of security and legal standing.
Electronic Signatures (e-Signatures)
An electronic signature is any electronic mark that shows intent to sign. This includes:
- Typed names: Typing your name at the end of an email
- Drawn signatures: Using a mouse or touchscreen to draw your signature
- Uploaded images: A scanned image of your handwritten signature
- Checkbox clicks: Clicking "I agree" on a form
- PIN or password: Entering a code to confirm identity
Pros of Electronic Signatures
- Easy to create and use
- No special software required
- Legally valid for most documents
- Fast and convenient
Cons of Electronic Signatures
- Easy to forge or copy
- No way to verify the signer's identity
- Cannot detect if document was modified after signing
Digital Signatures
A digital signature is a specific type of electronic signature that uses cryptographic technology to:
- Verify identity: Proves who signed the document
- Ensure integrity: Detects any changes made after signing
- Provide non-repudiation: The signer cannot deny signing
How Digital Signatures Work
- The signer has a unique "private key" (like a secret password)
- The document is run through a mathematical algorithm
- The algorithm creates a unique "hash" of the document
- This hash is encrypted with the signer's private key
- Anyone with the "public key" can verify the signature
Pros of Digital Signatures
- Cryptographically secure
- Tamper-evident (changes are detected)
- Identity verification through certificates
- Legally recognized for high-security documents
Cons of Digital Signatures
- Requires certificate setup
- More complex to implement
- May need special software to verify
- Certificates must be renewed periodically
Quick Comparison
| Feature | Electronic Signature | Digital Signature |
|---|---|---|
| Security level | Basic | High |
| Identity verification | Limited | Cryptographic proof |
| Tamper detection | No | Yes |
| Ease of use | Very easy | Moderate |
| Legal validity | Most documents | All documents |
| Cost | Usually free | May require paid certificate |
When to Use Each Type
Electronic Signatures Are Sufficient For:
- Internal company documents
- Basic agreements and contracts
- Consent forms
- HR documents
- Sales agreements
- Most everyday business documents
Digital Signatures Are Recommended For:
- Government and legal documents
- Financial transactions
- Healthcare records (HIPAA compliance)
- International agreements
- Documents requiring audit trails
- Situations where forgery is a concern
Legal Status
In the United States
The ESIGN Act and UETA make both electronic and digital signatures legally binding for most purposes, with some exceptions like wills and certain real estate documents.
In the European Union
The eIDAS regulation recognizes three types:
- Simple electronic signatures: Basic, like email signatures
- Advanced electronic signatures: Linked to signer and detects changes
- Qualified electronic signatures: Created by certified devices, equivalent to handwritten
Adding Signatures to PDFs
Our Sign PDF tool lets you add visual electronic signatures to any document:
- Upload your PDF
- Draw, type, or upload your signature
- Place it anywhere on the document
- Download your signed PDF
For documents requiring cryptographic digital signatures, you'll need a digital certificate from a certificate authority (CA).
Best Practices
- Assess the risk: Higher-stakes documents need stronger signatures
- Document the process: Keep records of when and how documents were signed
- Use secure platforms: Ensure your signing solution protects data
- Flatten after signing: Use Flatten PDF to make signatures permanent