Electronic Signature Versus Digital Signature: What's the difference

What is a digital signature? And how is it different from an electronic signature? At first, they may sound like two identical things. However, once you learn their differences, differentiating the two will be a lot easier. 

What are the two signatures?

An electronic signature is an electronic symbol —typically an electronic rendering of somebody’s signature— attached to a record of some kind, often a contract, used by a person with an intent to sign. Digital signatures are pretty much the same, but they offer more of a guarantee that the electronic document in question is authentic. There is no difference in the importance of each, and are both legally binding.

What are the main differences?

The main disparity comes from the level of security each signature delivers. To use a digital signature, you must first buy a digital certificate. These certificates are encrypted, which means that the sender is always verified with a digital signature, and are therefore virtually (some would argue entirely) invulnerable to tampering and other cyber attacks. They use codes and algorithms to maintain security and go through a strict verification process that meets specific standards. If the identity of the seller is not verified, digital signatures cannot be issued.

On the other hand, the electronic signature is easier to use as they do not require additional documents but may be more vulnerable to tampering and man-in-the-middle (MITM) attacks as a result. When the documents are “in the air,” they can be hijacked, which would be fatal for many companies. Unlike digital signatures, electronic signatures also don’t use any codes or algorithms and do not go through the extra step of identifying the senders and receivers. Moreover, they are also non-universal and can cause problems if you decide to change your signature later on.

Which one should you use?

Ultimately, you must choose a signature that can benefit your business the most. But keep in mind: many companies tend to use digital signatures over electronic signatures even if it requires more work since it provides more security. Digital signatures can get time-consuming, but they are definitely worth the hassle for your company’s future.

Security at Export Portal

Export Portal also prioritizes security and strives to create a trustworthy environment for small and medium-sized enterprises (SMEs) to complete global trade transactions securely. If you are interested in working with us, make sure to check out our site and review all the benefits we have to offer!