5 myths about digital signatures you have to stop believing in — Now!
Almost all of us have, at least once in a lifetime, printed, signed, or scanned documents. Signing documents brings finality to deals and business contracts. Traditional signing methods have been somewhat of an ultimate symbol of starting something new or ending something big. Hence, it’s no wonder that even modern businesses have a hard time shifting to a seemingly insubstantial method of signing contracts and important documents. It is very simply, a conditioning of the mind.
Sometime, around the mid-’70s, fortunately, our world was introduced to what we today call ‘Digital Signatures’. As a witness to true digital transformation, in more contemporary times, around 2020, the global digital signature market size reached $2.8 billion. This market is projected to grow to $14.1 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 31.0%. (MarketsandMarkets, 2020). Even with such explosive growth, there are still millions of businesses that are discouraged from taking the first step to total digital transformation.
e-Signature transactions have catapulted from 89 million to 754 million in just five years.
(Revitas, 2015)
In this blog, we are going to bust 5 of the biggest misconceptions that deter modern businesses from taking the plunge into the world of e-signatures!
These myths result from incomplete knowledge and a clear lack of detailed insights into this revolutionary technology. Thus, it becomes crucial to understand the basics and gather as much detailed information as possible about this technology
So, before we debunk the most common myths about using this technology, let us truly grasp the basic idea of a digital signature and how it works?
What are Digital Signatures?
The terms ‘digital signatures’ and ‘electronic signatures’ are sometimes used interchangeably or are confused with each other. While digital signatures are a form of e-signature, not all electronic signatures are digital signatures. Electronic signatures are defined as any sound, symbol, or process that shows the intent to sign something. This could be a scan of your hand-written signature, a stamp, or a recorded verbal confirmation. An electronic signature could even be your typed name on the signature line of a document.
A digital signature, on the other hand, is a type of electronic signature and is a mathematical algorithm used to validate the authenticity and integrity of a message (e.g., an email, or a digital document). Digital signatures create a virtual fingerprint that is unique to a person or entity and are used to identify users and protect the information in digital messages or documents. They are, in essence, ‘electronic fingerprints’ used to authenticate online information. They are equivalent to hand-written signatures and are universally accepted under various global e-signature laws. Digital signatures are considerably more secure than other forms of electronic signatures.
By implementing e-signatures into existing workflows, businesses can simplify work processes, and save cost and time. The conventional signing cycles that previously took weeks and tonnes of effort and resources can now be completed digitally in mere minutes, thanks to advanced electronic signature solutions. No longer will we have valuable time and money and resources wasted on long hours of printing foot-long contracts in the printing rooms and running around getting them in order to present to someone for a wet-ink signature. Signed, sealed, and delivered has truly attained new meaning!
Also Read: https://drysign.exelatech.com/blog/10-frequently-asked-questions-about-use-esignature
How do Digital Signatures work?
To understand how digital signatures work, it is imperative that we understand some critical terms associated with this technology. In all probability, you have come across words such as PKI, encryption and hash functions, etc while reading about digital signatures. Imagine, that you have a signed document locked in a box that needs two keys to open. In case the keys don’t match with each other, a very loud alarm is going to sound off! Most importantly, all other parties involved with the document would be notified of an interference. In the case of a digital signature, there would be no alarms, instead, the signature would be considered invalid as a result of tampering.
Digital signatures work by proving that a digital message or document was not modified — intentionally or unintentionally — from the time it was signed. They do this by generating a unique hash of the message or document and encrypting it using the sender’s private key. A hash or hash function is a fixed-length string of numbers and letters generated from a mathematical algorithm and a file such as an email, document, picture, or other types of data. This generated string is unique to the file and is a one-way function — a computed hash cannot be reversed to find other files that may generate the same hash value, nor can you change any part of the hash.
Once done, the message or digital document is digitally signed and sent to the recipient. The recipient then generates their own hash of the message or digital document and decrypts the sender’s hash (included in the original message) using the sender’s public key. Public key infrastructure or PKI consists of the policies, standards, people, and systems that support the distribution of public keys and the identity validation of individuals or entities with digital certificates and a certificate authority. Using digital signatures with PKI strengthens them and reduces the possible security issues connected to transmitting public keys. The security of a digital signature is almost entirely dependent on how well the private key is protected.
Modern-day digital signature solutions like DrySign, protect your information and data through layers of such security, all the while giving you the best customer experience and ease of use. With DrySign, all you have to do is upload, sign, and send, while we work tirelessly in the background to ensure that your information is fully secure and safe.
Myths, Busted!
Myth 1: Digital Signatures are not legally binding!
Fact: The first and one of the most common myths that are often spoken about digital signatures is their legality. There are still millions of people who are not aware of the water-tight laws that have been passed globally to give digital signatures the same weightage and validity as traditional paper and ink signatures
The Uniform Electronic Transactions Act (UETA) of 1999 and the United States Electronic Signatures in Global and National Commerce (ESIGN) Act of 2000, are the legal cornerstones for the usage of digital signatures in the USA. Both laws have four major requirements for an electronic signature to be recognized as valid:
Intent to sign
Consent to do business electronically
Association of signature with the record
Record retention
Exela’s DrySign, is an e-signature tool that is fully compliant with both laws in the USA.
Myth 2: Digital Signatures are expensive!
Fact: We have often heard that digital signatures are costly and difficult to implement. But is this really true? Well, the simple answer is No! Implementing digital signatures is actually much more cost-effective than traditional paper and ink methods. At first glance, it is easy to think that it is just an expensive hassle when it’s possible to just pick up a pen and sign a paper. But let us take a second to examine the process of bringing that pen and paper in front of you for signing. Are we so conditioned that we do not consider the millions of dollars wasted on producing paper? What about that fancy printer and scanner in your office lobby? How big a hole did that burn in your pocket? Have you also considered other associated costs to the logistics of getting that document to your doorstep? Fuel charges, courier or post, or fax charges? It really is a never-ending spiral of redundant expenditure.
A robust digital signature solution like DrySign minimizes these unnecessary costs to your company and business by offering you plans that perfectly suit your needs.
Myth 3: Digital Signatures are just a passing trend!
Fact: A lot of people believe that digital signatures are just a passing trend and are bound to become outdated. But, the reality is that they are here to stay. As seen earlier the digital signature market is witnessing phenomenal growth as you read this blog. No longer just a digital image of your signature, this technology brings safety, security, and protection to your online information like never before. In the future, we may see e-signature solutions become even more secure and impermeable with updated laws to ensure that more and more documents are accepted the world over if digitally signed. So while we are sure that digital signatures will go through several changes in the future we are certain that they are more than just a trend; they are the future!
Myth 4: Digital Signatures are not secure.
Fact: Not only are they secure, but also highly complicated to falsify. As we now know, even tiny tampering of the public key can instantly invalidate the document, thanks to the random mathematical algorithm and encryption. This complex technology not only protects your sensitive information but also keeps you informed of any changes or tweaks made to your document.
Digital signatures are accompanied by verified data that identifies the signer with the help of IP address, geolocation, method of identity verification, and more. This highly sensitive information is stored in a document’s audit trail, which can be used to support the validity of a digital signature for future purposes.
One of the most important features of DrySign is the Audit Trail feature that allows you to track and verify the status of your document with solid time-stamps and a fully secure audit trail.
Myth 5: It’s tough to manage multiple signatures on a document
Fact: Need to get a 100+ page contract signed by multiple clients or partners? You are sure that no online or digital method is going to help and it is better if you just print it all and then send it to different people, possibly in different locations to get it signed. Stop right there!
E-signature solutions allow you to sign multiple pages and can be sent within minutes to anyone, anywhere, anytime. All you need is an internet connection and a document waiting to be signed.
DrySign’s Group Feature allows users to invite multiple signatories for the same document. Upload your document, send it to all the signatories using their email addresses and it’s done!
It must be known that it is super easy to integrate and implement e-signatures into your existing system saving you time, money, and effort. Users can easily access their documents from mobiles, tablets, or any other device making the signing process quick and easy to streamline.
Here are some quick facts that can help you clear your doubts about e-signatures:
They are legally binding
They can be easily integrated into your existing system
They are safe and secure
They are 100% sustainable
They can save your business a whole lot of time, cost, and effort and instantly improve the efficiency of your workflows.
Digital signatures have been widely used and accepted globally for more than 20 years. More than 95% of the world has acknowledged them as legally binding.
Digital Signatures are legally accepted globally and provide way more security than conventional wet ink signatures. Our powerful solution ‘DrySign’ helps companies go paperless with e-signatures and bring a better signing experience for clients and colleagues alike.
What is DrySign?
DrySign is a secure, legally compliant, and sustainable digital signature tool that allows its users to sign documents that are legally valid, 100% safe, and secure. With easy-to-use software and a convenient and highly engaging dashboard, you can now keep a track of how many documents were signed, by who, when, and if any changes were made to your document while in transit. All from the safety of your homes, in a click. A bird’s eye view of your signing history allows you to have complete control over sensitive documentation. Your business no longer has to suffer from forgery, loss or damage of documents in transit or transportation, tampering with sensitive information, and many other dangerous and uncertain problems that arise when you use traditional paper and ink methods.
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DISCLAIMER: The information on this site is for general information purposes only and is not intended to serve as legal advice. Laws governing the subject matter may change quickly and Exela cannot guarantee that all the information on this site is current or correct. Should you have specific legal questions about any of the information on this site, you should consult with a licensed attorney in your area.
