• 2024-10-09

What is the difference between an electronic signature and an eSignature

What is the difference between an electronic signature and an eSignature

Several studies have proved that it is possible to assess an individual's personality traits based on how he or she fixes his or her signature. The signature of a person reflects the unique identity of the person who signs the document. Signing a document denoting once acceptance as a concept evolved over the years and emerged in different ways with technological advancements.  In this digital era, manual; y signing a document underwent several changes thanks to advancements in eSignature technology. It is essential at this juncture,  to discuss the differences between an electronic signature and eSignature in the digital era with the significant rise in the usage of digital document management systems. 

What is the major difference between the electronic signature and eSignature?

Although words like' eSignature' and 'electronic signature' are used synonymously, these two methods have a vast difference. In the case of an electronic signature, there are possibilities of just typing the name of the signatory as text in a space specified. One can type their signature as text in a 'Word or a PDF' form. This signature is not free from tampering. It can be modified and it is susceptible to any fraudulent activity. Our signature carries significant importance in all financial, official, and social transactions, and any misappropriations in this aspect would lead to severe socio-economic impact with legal consequences. 

eSignatures and digital signatures, on the other hand, are the same, and this is different from typing a user’s name on a document. 

In paper-based documentation, signatures are fixed in the presence of a witness, and they should be authenticated by an independent arbitrator in the case of any property registration. eSignature as a concept,  is different from texted electronic signatures. eSignature, or digital signature, follows a different mechanism to authenticate the person who is signing the document remotely, not in the presence of witnesses.

The growing significance of digital signature:

The growing significance of digital signature incorporate document transactions

The growing significance of digital signature in corporate document transactions. According to a study from Precedence Research, the market value of digital signature software is projected to reach approximately $6 billion by 2024.

Increasing demand for secure digital transactions, the rise of remote work, and the need for efficient document management solutions are the driving forces beyond this unprecedented rise in popularity for eSignature. Additionally, the adoption of regulatory frameworks supporting electronic signatures is further boosting market expansion.

Why has the corporate shifted to a digital document management system?

Countries across the globe have enacted laws, making digital signatures legally valid. It is no longer essential for a person to sign a document physically. COVID.  

The exponential growth of online merchandising, in a way, boosted the digital economy, leading to transaction, trade, and eCommerce. According to Precedence Research’s findings, the global e-commerce market size was USD 16.29 trillion in 2023, and it is expected to reach USD 18.77 trillion in 2024. Customers’ demand to get services at their doorsteps was the result of unprecedented growth in technology usage. Electronic document management system are part of the explosion in technological innovations.

Today, the emerging market landscape is demanding companies build a world-class digital workspace to sign documents online with speed and precision. 

What used to take several weeks and months to complete the document workflow previously is now completed in a few minutes. ‘eSigns’  is one of the prominent digital signature tools that promote agility in organizational communications. Electronic signature software emerged quickly to cater to the emerging market needs of the company.

What are the differences between the electronic signature and online document management system?

  • Digital signature beats the lapses in the speed and accuracy of conventional document management system.

Unlike traditional document transactions, which are expensive and time-consuming, e-signature platforms promote accuracy, avoiding document errors. Cloud-based electronic systems facilitate instant document transactions.

  • Digital signature platforms are cost-effective and efficient:

Digital signature platforms are cost-effective and efficient

 Unlike traditional email communication, where a document is placed as an attachment, the advanced digital document management system is cost-effective. Companies need not spend money on paper, printing, scanning and finally getting it signed physically by reaching them in person or through courier services. Companies can automate workflow and can create documents, or templates and share them instantly using multiple document-sharing options in the eSigns platform.

  • Online document management is valid and legally binding:

Online signature platforms are legally binding and abide by compliance norms so it is poised to enhance customer privacy and online document security.

  • Digital signature platforms fight document tampering:

Document management system follow a two-step user authentication process, and only the authorized user can access documents.

  • Document management system promotes transparency:

Document management system promote transparency

Online signing platforms maintain transparency in their document transactions by registering all document corrections. They maintain a digital log history that details with names of the persons who corrected the document, including the date and time of the correction. 

Digital signature platforms maintain a detailed digital log for every correction a user initiates so that all the stakeholders who are about to sign a document online can verify this and confirm that no fraudulent behavior is noticed before signing the document.

Final thoughts:

Although electronic signature and eSignature sound synonymous, they are different in terms of ensuring document safety and security. While digital signatures can be signed completely online, texting once a signature in a digital form doesn’t carry those features. Online document management is comprehensive in ensuring document safety and compliance. It is not possible to tamper with your legally accepted eSignature and get access to a document if you are not authorized.