Unraveling the Differences Between Digital Signatures and Electronic Signatures

Difference between digital signature and electronic signature

The Internet users of the late 20th century probably never anticipated that we would eventually no longer need wet signatures to sign important documents. In the early 2000s, the awareness and adoption of digital and electronic signatures increased with leaps and bounds. Governments and regulatory bodies worldwide started passing laws and regulations to legally recognize digital and electronic signatures. This further boosted their acceptance in various industries.

Let’s take a look at why signatures are used to authenticate documents before we discuss the difference between digital and electronic signatures.

Why are signatures used to authenticate documents?

Signatures have been used since ancient times when people in Mesopotamia, Egypt, and China used different seals or marks to identify the person associated with the document and show their approval of the contents. 

During the Renaissance period in Europe, literacy increased, individual identity developed, and more and more people started using their names to sign documents, especially those that were legally binding. 

The standardization of business practices in the 18th to 20th centuries further cemented the role of signatures in document authentication. 

With the increase in digital technologies, communication, and transactions, the need for electronic and digital signatures also increased, especially as the traditional method of signing paper documents has become cumbersome and inefficient.

What are the differences between electronic and digital signatures?

The need for digital signatures and electronic signatures gained significant momentum in the early 21st century. They are both methods used to sign documents in digital format, but the main difference is the level of security that the two methods provide. 

We will look at the key differences in terms of the following:

Technology

Electronic signatures include any of the following methods: typing a name, drawing a signature with a mouse, clicking a checkbox, or uploading an image of a signature. These are very convenient ways to sign a document but don’t offer the same level of security as a digital signature.

Digital signatures use complex key cryptography to create a unique, mathematically generated code or digital fingerprint to link the signer and the document. The document is locked after the signature and cannot be edited again. 

The public key infrastructure (PKI) based digital certificate (a digital identity that is issued by a trusted third party) provides enhanced security and is recognized as legally binding. The PKI verifies your online presence and enables secure communication in the digital world.

Security

It is possible to tamper with an electronically signed document, making it harder to prove authenticity in a court of law. 

On the other hand, digital signatures give a higher level of security with multi-factor authentication, ensuring the integrity of the document. It uses a key pair (also called asymmetric cryptography), a hash function, public and private keys, as well as signature and verification algorithms and cannot be edited.

Legal validity

Some countries accept e-signatures as legally binding, but others might require specific types of electronic signatures to be compliant. A scanned image of a handwritten signature is not as secure as a digital signature, and it would be easier for a signer to deny their association with the document.

Digital signatures are generally considered to be more legally sound due to the stronger cryptographic security. Most countries recognize digital signatures using trusted certification authorities with a certificate-based digital ID as legally binding. The cryptographic keys ensure that the signature is unique to the signer, and it can be verified by anyone with access to the public key. This makes it difficult for the signer to deny their link to the document or claim that the signature is fraudulent.

Use cases

When looking at digital signatures versus electronic signatures the following can be said: Electronic signatures are more diverse and can be used in everyday documents like agreements, invoices or purchase orders where a lower level of security is acceptable, whereas digital signatures are commonly used in situations where a higher level of security and legal compliance is required for documents such as contracts, financial documents, and legal agreements.

In short: electronic signatures are used to verify the document, and digital signatures secure a document. 

Whether you allow users to sign with an electronic signature or use digital signature encryption will depend on your specific business needs and the level of security you require. 

Salesforce and electronic and digital signatures

As Salesforce’s primary focus lies in robust customer relationship management (CRM) functionalities, it doesn’t offer native electronic and digital signature capabilities. However, it seamlessly integrates with a number of powerful signature solutions, and therefore you can select a solution that best fits your specific needs and budget. These solutions provide digital signing software with full Salesforce integration, allowing users to create documents, insert Salesforce fields dynamically, send for signing, and track and securely store electronic signatures.

Choose the right Salesforce signature tool

Titan Sign is a Salesforce e-sign solution that smoothly integrates with and tracks every interaction in Salesforce. Titan Sign’s user-friendly digital-signatures software solution is part of Titan’s no-code suite of enterprise products for Salesforce. Each of the Titan modules is designed to help you build custom applications using no code. Titan Sign works seamlessly with Titan’s other products like Doc Gen and CLM.

With Titan Sign, you can use different document types, such as Microsoft Docs and Adobe PDF.  It complies with HIPAA, SOC 2, ISO, GDPR and other leading frameworks and lets you create legally binding documents in a flash. You can use document workflows to automatically initiate signature requests, send notifications, and update Salesforce records. Furthermore, you can also dynamically route documents for approval or signature based on specific conditions, thereby ensuring a smooth and efficient workflow. Titan lets you automate tedious tasks like data entry, routing and follow-up emails, freeing up your time for more strategic work. 

Titan’s simplified signing experience lets signers review and sign documents directly within Salesforce, eliminating the need to switch between platforms. Titan Sign has extensive document generation features, especially when compared to other popular electronic and online digital signature solutions for Salesforce. Titan Sign for Salesforce document signatures offers comprehensive audit logs, providing you with a detailed record of all activities within your e-signature workflows. Its convenience and versatility have been proven time and time again.   

Titan gives you the freedom to choose the best option for your use case!

About the blog

SFDCLessons is a blog where you can find various Salesforce tutorials and tips that we have written to help beginners and experienced developers alike. we also share my experience and knowledge on Salesforce best practices, troubleshooting, and optimization. Don’t forget to follow us on:

Newsletter

Subscribe to our email newsletter to be notified when a new post is published.

Arun Kumar

Arun Kumar is a Salesforce Certified Platform Developer I with over 7+ years of experience working on the Salesforce platform. He specializes in developing custom applications, integrations, and reports to help customers streamline their business processes. Arun is passionate about helping businesses leverage the power of Salesforce to achieve their goals.

Leave a Reply