Electronic Signature vs Digital Signature: What's the Difference?

People use "electronic signature" and "digital signature" interchangeably, but they're not the same thing. Understanding the difference helps you choose the right approach for your documents.

The Quick Answer

Electronic signature is the broad category—any electronic indication of intent to sign. This includes typed names, drawn signatures, checkbox agreements, and more.

Digital signature is a specific type of electronic signature that uses cryptographic technology to verify the signer's identity and ensure the document hasn't been tampered with.

Think of it this way: all digital signatures are electronic signatures, but not all electronic signatures are digital signatures.

Electronic Signatures Explained

An electronic signature is any electronic symbol, sound, or process attached to a document that indicates intent to sign. Under eIDAS and ESIGN laws, electronic signatures have the same legal weight as handwritten signatures for most purposes.

Examples of Electronic Signatures

• Typing your name at the end of an email
• Drawing your signature on a touchscreen
• Clicking "I Agree" on a terms of service
• Using an e-signature platform like signready.co
• Pasting an image of your signature

Characteristics

• Easy to create and use
• Legally valid for most business documents
• Varies in security level depending on implementation
• May or may not include identity verification

Digital Signatures Explained

A digital signature uses public key infrastructure (PKI) and cryptographic algorithms to create a unique "fingerprint" of the document and the signer. This provides mathematical proof that:

1. The document hasn't been altered since signing
2. The signature came from the claimed signer
3. The signer cannot deny having signed (non-repudiation)

How Digital Signatures Work

1. The signer has a private key (kept secret) and public key (shared)
2. When signing, cryptographic algorithms create a unique hash of the document
3. The hash is encrypted with the signer's private key
4. Anyone can verify using the public key that the signature is valid
5. Any change to the document invalidates the signature

Characteristics

• Highest level of security and verification
• Requires certificate from a Certificate Authority (CA)
• More complex to implement
• Often required for government and high-security applications

Comparison Table

Which Should You Use?

Use Electronic Signatures For:

• Business contracts and agreements
• NDAs and confidentiality agreements
• HR documents (offer letters, policies)
• Sales agreements and proposals
• Most day-to-day business documents

Use Digital Signatures For:

• Government submissions requiring high assurance
• Regulated industries (healthcare, finance)
• Software distribution (code signing)
• High-value financial transactions
• Documents where tampering risk is high

The Bottom Line

For most business purposes—contracts, NDAs, invoices, agreements—electronic signatures are legally valid and practically sufficient. They're easier to use and understand.

Digital signatures add cryptographic security and are required in specific high-security contexts. Unless you're in a regulated industry or dealing with government requirements, electronic signatures will serve you well.

signready.co provides electronic signatures that are legally binding and compliant with eIDAS and ESIGN regulations—suitable for the vast majority of business documents.