Understanding the difference between 'electronic' and 'digital' when attached to the term 'signature' can be confusing, as they’re often incorrectly used interchangeably. However, they're distinctly different.
The traditional “wet-ink” signature, a symbol of agreement, acknowledgment, or obligation, is becoming increasingly outdated in our digital world. Handwritten signatures are evolving into more secure, efficient forms of confirming document content thanks to advancements in technology.
Digital signatures are a game-changing innovation in this realm. These signatures use digital codes created and authenticated by public key encryption, linking an electronic document to the sender’s identity. They’ve introduced new complexities and terminologies to the practice of document signing. Still, depending on your location, the terms 'digital' and 'electronic' may be misused or misunderstood, both in everyday conversations and legal scenarios. Hence, it's crucial to differentiate between the two.
An electronic signature, or an “ordinary electronic signature,” is often defined as "Symbols or other data in digital form attached to an electronically transmitted document as verification of the sender's intent to sign the document." It can take several forms, such as a scanned handwritten signature, a typed name at the end of an email, or even a verbal agreement or simple checkbox click. However, these signatures present challenges in terms of maintenance, identity confirmation, and security, making them more susceptible to fraud and dispute.
On the other hand, digital signatures employ cryptography, providing unalterable assurance that the message or document hasn't been modified in transit. Also termed advanced or secure electronic signatures, digital signatures use public key infrastructure (PKI) technology and X.509 digital certificates for high-level security and universal acceptance. Digital signatures create a unique hash-code for both signer and content, ensuring it can't be replicated or tampered with. This method offers proof of the signer's identity, ensures the document's data integrity, and provides indisputable non-repudiation of signed documents.
Digital signatures are superior in terms of legal weight and security. To put it simply, electronic signatures verify documents, while digital signatures secure them.
Note: SigniFlow only employs Digital signature technology. Every signature on a document signed with SigniFlow is a Digital signature with the signer's unique cryptographic credentials.
Discover more about Matias Group's platinum partnership with SigniFlow for the banking and financial services industries in Australia.
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