The Quick Answer
Electronic signature is a broad term for any electronic indication of intent to sign (like typing your name, clicking "I agree", or drawing a signature on screen).
Digital signature is a specific type of electronic signature that uses cryptographic technology to verify authenticity and detect tampering.
What is an Electronic Signature?
An electronic signature (or e-signature) is any electronic process that indicates acceptance or approval of a document. It's a legal concept defined in legislation like Australia's Electronic Transactions Act.
Electronic signatures can take many forms:
Common Examples
- • Typing your name in a signature field
- • Drawing a signature with your mouse or finger
- • Clicking an "I Agree" button
- • Pasting an image of your handwritten signature
- • Using a stylised font to represent your name
Key Characteristics
- • Indicates intent to sign
- • Legally binding under Australian law
- • Can be simple or complex
- • Various levels of security possible
- • Broadly accepted for most documents
What is a Digital Signature?
A digital signature is a specific type of electronic signature that uses cryptographic technology to provide enhanced security and verification. Think of it as an electronic signature with an extra layer of mathematical proof.
How Digital Signatures Work:
- 1A unique "hash" (digital fingerprint) of the document is created
- 2The hash is encrypted using the signer's private key
- 3The encrypted hash is attached to the document as a digital certificate
- 4Anyone can verify the signature using the corresponding public key
If even a single character in the document is changed after signing, the verification will fail, instantly revealing that the document has been tampered with.
Key Differences at a Glance
| Aspect | Electronic Signature | Digital Signature |
|---|---|---|
| Definition | Any electronic indication of intent to sign | Cryptographically secured electronic signature |
| Technology | Various (images, typed text, clicks) | Public key cryptography (PKI) |
| Tamper Detection | May or may not include | Always built-in |
| Signer Verification | Varies by implementation | Cryptographically verified |
| Complexity | Simple to use | More complex setup |
| Use Cases | Most business documents | High-security requirements |
Which Type Do You Need?
For most Australian businesses and everyday documents, a standard electronic signature with a good audit trail is sufficient and legally binding. Here's when each type makes sense:
Electronic Signature is Enough For:
- Employment contracts
- Client agreements
- Rental agreements
- NDAs and confidentiality agreements
- Sales contracts
- Internal policies and forms
Digital Signature May Be Required For:
- Government submissions
- Regulated industry documents
- High-value financial transactions
- International agreements requiring PKI
- Documents with strict compliance requirements
How AirSign Combines Both
AirSign provides electronic signatures enhanced with digital signature technology. This gives you the best of both worlds:
- Easy to use - Signers simply draw, type, or upload their signature like a standard e-signature
- Tamper-evident certificates - Every signed document gets a digital certificate that detects alterations
- Complete audit trail - Full record of who signed, when, from where, and on what device
- Legally binding - Meets all requirements under Australian Electronic Transactions Act
Common Misconceptions
"Digital signatures are more legally valid"
Not necessarily. In Australia, both electronic and digital signatures are legally valid under the Electronic Transactions Act. The key is meeting the requirements of consent, reliability, and identification.
"I need a special certificate to sign digitally"
For most business purposes, you don't need to purchase a personal digital certificate. Platforms like AirSign handle the cryptographic side automatically.
"Electronic signatures are just images of signatures"
A proper e-signature platform does much more than paste an image. It captures intent, creates an audit trail, and can include tamper protection - making it far more secure than a simple image.
The Bottom Line
While the terms are often confused, understanding the difference between electronic and digital signatures helps you make informed decisions about document security. For most Australian businesses, an electronic signature solution with robust security features (like AirSign) provides the perfect balance of ease-of-use and legal protection.
The most important thing is choosing a platform that provides proper audit trails, tamper detection, and meets Australian legal requirements - regardless of whether it's technically called an electronic or digital signature.