Table of Contents
Introduction
In today’s digital world, signatures have gone paperless! But many people confuse Digital Signatures and Electronic Signatures (E-Signatures). While both are used to sign documents online, they serve different purposes and offer varying levels of security.
So, what’s the difference between a digital signature and an electronic signature? Let’s break it down.
What is an Electronic Signature (E-Signature)?
An Electronic Signature (E-Signature) is a broad term for any digital method of signing a document. It is legally recognized and widely used for agreements, approvals, and contracts.
Key Features of E-Signatures:
✅ Simple and convenient way to sign documents electronically.
✅ Can be an image of a handwritten signature, a typed name, or a click-to-sign button.
✅ Used for low-risk agreements like business contracts, HR forms, and approvals.
✅ Provides some level of identity verification but may not be as secure as a digital signature.
📌 Example: Signing a contract by typing your name or clicking an “I Agree” button online.
What is a Digital Signature?
A Digital Signature is a specific type of electronic signature that uses cryptographic encryption to ensure security, authenticity, and legal validity.
Key Features of Digital Signatures:
✅ Uses Public Key Infrastructure (PKI) for encryption and authentication.
✅ Ensures that the signed document cannot be altered after signing.
✅ Provides legally recognized identity verification.
✅ Used for government filings, banking transactions, tax returns, and business contracts.
📌 Example: A Class 3 Digital Signature Certificate (DSC) used for GST filing, MCA e-filing, and e-tendering.
Key Differences: Digital Signature vs. Electronic Signature
| Feature | Digital Signature | Electronic Signature |
|---|---|---|
| Definition | A cryptographic-based secure signature used for authentication. | A general term for signing electronically. |
| Security | High security with encryption & authentication. | Basic security, can be forged. |
| Legality | Legally valid and widely used for government & business compliance. | Legally valid but may not be accepted in high-security cases. |
| Verification | Uses PKI-based certificates to verify identity. | Relies on email/IP address but lacks strong verification. |
| Use Cases | E-filing, Banking, Tax Returns, Legal Documents, Tenders | Business Contracts, HR Approvals, Online Agreements |
Which One Should You Use?
🔹 Use an Electronic Signature if:
✅ You need a simple, fast way to sign agreements.
✅ The document doesn’t require high security or legal certification.
🔹 Use a Digital Signature if:
✅ You need strong security and legal compliance (e.g., government or business filings).
✅ You’re signing sensitive documents like financial transactions, contracts, or regulatory filings.
How to Get a Digital Signature?
To use a digital signature, you need a Digital Signature Certificate (DSC) issued by a Certifying Authority (CA) such as:
- eMudhra
- VSign CA
- XtraTrust
- nCode
Steps to Get a DSC:
- Choose the type of DSC: Class 3 is commonly used for business and government transactions.
- Apply online: Provide ID proof, address proof, and submit KYC documents.
- Complete verification: Identity verification is done via video or physically.
- Receive your DSC: It is stored on a USB token.
Conclusion
Both Electronic Signatures and Digital Signatures are useful for different purposes. While E-Signatures are quick and convenient, Digital Signatures offer a higher level of security and legal compliance.
If you need a legally recognized and secure Digital Signature Certificate (DSC), API Infotech is here to help!
📩 Get your DSC today! Contact us at info@apiinfotechblogs.aditya.sbs or visit API Infotech 🚀