Digital Signature vs. Electronic Signature: Examples and Features

At first glance, an electronic signature and a digital signature might seem the same, but they couldn't be more different. Possibly, the biggest difference lies in their legal implications, so let’s delve deeper into that in this article.

At Rootstack, together with our partner Validated ID, we have implemented multiple digital signature solutions for various companies and industries, so based on our experience, we can assist you in this process.

An electronic signature is a broad term that can include anything from a scanned image of your signature to a mark made with your finger on a touchscreen. In contrast, a digital signature is a specific type of electronic signature that uses cryptographic algorithms to authenticate the signer’s identity and ensure the document’s integrity.

This gives the digital signature a much stronger legal weight in most modern legal frameworks. In fact, regulations such as the eIDAS regulation in Europe or the Advanced Electronic Signature Law in Latin America recognize and validate this type of technology as equivalent to a handwritten signature.

What is the difference between a digital signature and an electronic signature?

Although they are often used interchangeably, a digital signature and an electronic signature are not the same. Knowing the differences is crucial for making informed decisions when choosing a tool for your company.

Electronic signature is a broad term that encompasses any method of digital validation, such as typing your name at the end of an email, ticking a checkbox on an online form, or signing with your finger on a smartphone screen. It is useful for simple processes but does not always guarantee identity or document integrity.

On the other hand, a digital signature is an advanced form of electronic signature supported by digital certificates and cryptography. Its purpose is not only to identify the signer but also to ensure that the document has not been altered since it was signed.

Key differences:

• Authenticity: Digital signatures cryptographically verify the signer’s identity. Electronic signatures may not have technical mechanisms to do so.
• Integrity: Digital signatures detect if a document has been modified after signing. Electronic ones may not.
• Legal validity: Many legislations (like eIDAS in Europe and the Electronic Signature Law in Latin America) give greater legal weight to digital signatures.
• Technology: Digital signatures use public key infrastructure (PKI), certificates issued by certification authorities (CAs), and cryptographic algorithms like RSA or ECC.
• Use cases: Electronic signatures may suffice to acknowledge receipt of an internal policy; but for contracts, invoicing, HR, or legal matters, a digital signature is recommended.

Therefore, if your company handles critical or legally valuable documents, it is best to opt for a digital signature solution that complies with international security standards and legal regulations.

How much does a digital signature cost?

The cost of a digital signature varies depending on the provider, the required security level, and the number of users or transactions. There are subscription models, pay-per-document options, or custom integrations. At Rootstack, we adapt our solutions to each client's budget and needs, ensuring the highest return on investment.

Additionally, the initial investment in this technology is quickly offset by eliminating paper, reducing approval times, and avoiding human errors.

What is needed to implement a digital signature?

Many companies wonder about the equipment required for electronic signatures. The reality is that most current solutions are completely digital and require no special hardware. A device with internet access, an up-to-date browser, and in some cases, a digital certificate (which can be managed online) is enough.

Implementing a digital signature solution is not just an operational improvement—it's a strategic decision. As more processes move to the cloud, having a robust, legal, and automated system for signing documents becomes a competitive advantage.

At Rootstack, we help companies take that step toward digital efficiency. If you want to transform the way you manage contracts, approvals, and authorizations, contact us. Our team can advise you, tailor the solution to your current systems, and support you throughout the integration process.

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