If you've ever Googled "digital signature" and "e-signature" trying to figure out which one you need, you're not alone. These terms get thrown around like they mean the same thing, and honestly, for most business purposes, the distinction doesn't matter much. But if you're curious about what sets them apart, let's break it down.
The short version
E-Signature (Electronic Signature)
Digital Signature
Think of it this way: all digital signatures are e-signatures, but not all e-signatures are digital signatures. It's like how all squares are rectangles, but not all rectangles are squares.
What makes a digital signature different?
Digital signatures involve encryption and certificates. When you apply a digital signature, the software creates a unique "fingerprint" of the document using something called a hash function. This fingerprint gets encrypted with your private key and attached to the document.
Later, anyone can verify the signature by decrypting it with your public key and comparing the fingerprint. If the document was changed after signing, the fingerprints won't match, and you'll know something's off.
This level of verification is important in certain industries, like government contracts, healthcare, or financial services where regulatory requirements are strict.
When does the difference actually matter?
For most everyday business documents, it doesn't. If you're sending a proposal to a client, getting an NDA signed, or onboarding a new employee, a standard e-signature with a proper audit trail is perfectly fine and legally binding.
The distinction starts to matter when you're dealing with:
- Government contracts that specifically require cryptographic signatures
- Highly regulated industries with strict compliance requirements
- Cross-border transactions where specific signature standards are mandated
- Documents where proving non-tampering is critical
If you're not in one of these situations, you probably don't need to worry about the technical difference.
Are both legally valid?
Yes. In South Africa, the Electronic Communications and Transactions Act (ECTA) recognises both e-signatures and digital signatures as legally valid. For South African businesses specifically, we cover this in depth in is digital signing legal in South Africa. The same goes for most countries: the EU has eIDAS, the US has ESIGN and UETA, and similar laws exist across the globe.
What matters for legal validity isn't whether you used cryptographic technology. It's whether there's clear evidence of:
- ✓Who signed the document
- ✓When they signed it
- ✓Their intent to sign
- ✓That the document hasn't been altered
A good e-signature platform handles all of this with audit trails, timestamps, IP logging, and secure document storage.
What about the terms people use?
Here's where it gets a bit messy. In everyday conversation, people use "digital signature" and "e-signature" interchangeably. When someone says "I need to get this digitally signed," they usually just mean they want an electronic signature, not specifically a cryptographic one.
Even within the industry, the terminology isn't always consistent. Some platforms call themselves "digital signing" solutions when they're technically providing e-signatures. Others use "electronic signature" as an umbrella term.
Don't get too hung up on the labels. Focus on what the platform actually provides: a secure way to get documents signed with proper verification and audit trails.
Which one do you need?
If you're running a small or medium business and need to get contracts, proposals, or agreements signed, an e-signature solution with good security features will cover 99% of your needs.
Look for a platform that offers:
- ✓Clear audit trails showing who signed and when
- ✓Tamper-evident document storage
- ✓Easy verification of signed documents
- ✓Compliance with local electronic signature laws
If you specifically need cryptographic digital signatures for regulatory compliance, make sure the platform you choose supports that. But for most businesses, the simpler solution works just fine.
The bottom line
Don't let the terminology confusion stop you from moving away from paper. Whether you call it digital signing or e-signature, the important thing is that you can get documents signed quickly, securely, and with proper legal standing. For the full legal framework in South Africa, read our ECT Act explained guide.
The days of printing, signing, scanning, and emailing documents back and forth are over. Pick a solution that fits your workflow, and you'll wonder why you didn't make the switch sooner.
Want to see how simple digital signing can be? See how NomaSign works or check out our pricing.