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Dec 10, 2020
4 minutes read

Electronic Signature Vs. Digital Signature: How Are They Different?

Gathering pen-and-paper signatures is inconvenient and more difficult than ever in the COVID-19 era, driving the need for electronic and digital signatures. Discover the key differences between electronic signatures and digital signatures in this helpful guide.

The global electronic signature market is projected to grow from $2.8 billion in 2020 to $14.1 billion by 2026.

As esignatures gain widespread adoption, the terms "electronic signature" and "digital signature" are often used interchangeably. However, these terms have distinct differences you’ll want to know before selecting one over the other.

I. What Is An Electronic Signature?

Electronic signatures refer to verifications applied to a document electronically vs. a signature on a physical piece of paper. These "signatures" (which don't always resemble your handwritten signature) affirm agreements or transactions between people or entities.

The Electronic Signatures in Global and National Commerce (ESIGN) Act is the U.S. law that facilitates esignatures. Under the ESIGN Act, electronic sounds, symbols, or processes can constitute an esignature, as long as it’s attached to a contract with the intent to sign.

The ESIGN Act provides general validity for electronic records and signatures for transactions within interstate or foreign commerce. In most circumstances, the ESIGN Act considers electronic signatures legally valid.

Electronic signatures are ideal for:

  • Government agencies

  • Banking, finance, and insurance businesses

  • Human resources

  • Real estate, legal, and consultancy businesses

  • Healthcare

Electronic signatures are easy to use via an electronic signature app. Once documents are uploaded and sent to signers, recipients can digitally sign these files on their laptops, desktop computers, tablets, mobile phones, or any other device.

After signatures are obtained, documents are time-stamped and secured with a certificate. This added security layer gives your document a unique digital signature that is legally equivalent to a written signature.

II. What Is A Digital Signature?

A digital signature is the technology that proves the validity of an electronic signature and "seals" your documents. Digital signatures require a digital certificate from a certificate authority (CA) to vet a user's identity. The certificate is bound by cryptography to the signed document, creating a unique digital fingerprint.

Digital signatures also embed a public key infrastructure (PKI) into the signing process. PKIs generate two keys— one public and one private — to identify the signer and the entity requesting the signature. Both the digital certificate and PKI provide stringent identification and security for sensitive legal documents.

Certain states and regulatory bodies require digital signatures over electronic signatures alone.

III. Electronic Signature Vs. Digital Signature

Electronic signatures are digital symbols that a signer applies to a contract while digital signatures use encryption methods to authenticate digital documents. While both signatures are legally binding, electronic signatures replace traditional signatures.

Electronic Signatures:

  • Use standard methods (employee ID, email, or multi-factor authentication) to authenticate a signer’s identity

  • Verify document authenticity

  • Are equivalent to a handwritten signature

  • Use audit trails to validate signed documents

  • Are easy to apply via electronic signature apps

Digital Signatures:

  • Use sophisticated certificate-based identification methods

  • Secure document integrity

  • Are not equivalent to a handwritten signature

  • Use encryption to verify the validity of signed documents

  • Require third-party verification

IV. Start Sending Secure Electronic Signatures

Are you ready to start sending electronic signatures? Signing paper documents is outdated, expensive, and time-consuming.’s Sign offers unparalleled support and includes more basic package features than any other esignature product.

Check out some of Sign’s unique features:

  • Unlimited Users: Sign as many users as you want – no extra charges.

  • Faster Results: On average, companies that switch to Sign complete contracts, agreements, and documents up to seven days faster, without printing or scanning!

  • Unique Pricing Model: Pay a fixed price only when a document is completed, not when you send it. No signature = no costs.

  • Safe and Secure: We focus on flexibility without compromising on security, compliance, or confidentiality.

  • Get Started Fast: No special software, app, or program installation is needed. Collect electronic signatures via’s web-based platform or API.

Check out Sign today! Send your first three documents free, no strings attached.

Send Your First 3 Documents Free With Sign

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