Electronic Signature

An electronic signature is a technology enabled method of document authentication and legal binding of documents, contracts, and transactions in the electronic environment. In contrast to traditional handwritten signatures, which are put by hand onto physical documents, electronic signatures are developed and verified electronically. This process can achieve authentication, integrity and non-repudiation by using various cryptographic ways. Electronic signatures are a secure and convenient alternative to handwritten signatures that allow people and organizations to do business digitally, communication and documents management become easier.

Example of Electronic Signature

For example, think of the situation when a company hires a new person. Upon having the job offer extended and accepted, a lot of documents need to be signed to complete the employment agreement. Instead of sending / physically delivering these documents, both the employer and the new applicant are using the electronic signatures. The employer sends the offer letter, employment contract, and any other required documentation via a secure online system. The new employee peruses the documents and signs them electronically via a digital signature tool built into the platform. Once the signed documents are received by the employer, the signatures get verified and the offer is officially accepted. Here, electronic signatures simplify and accelerate the hiring process because they replace the delays and logistical difficulties that are inherent to the traditional paper-based signature system.