What Is an Electronic Signature?
In electronic commerce, it is particularly important to know which sender an electronic document belongs to. Both contracts and orders, as well as the associated payments, are possible via the internet. An electronic signature guarantees that the document originates from the signatory and has been transmitted unaltered and in its entirety. The acceptance of e-commerce depends on legal certainty online, and electronic signatures make a significant contribution to this process.
The electronic signature is by no means a digital copy of the handwritten signature; rather, the signature technology generates a unique identifier that simultaneously represents the document and the signer. The digital signature protects both the sender and recipient of the message: the recipient is immediately notified by the software if the message has been tampered with.
How Does an Electronic Signature Work?
Each signature holder receives an individual digital key pair: It consists of the “secret key” (signature key) and the “public key” (signature verification key). The secret key is stored on the user’s smart card and cannot be read. It is used to generate the signature: When a message is signed, a copy of the message is created and encrypted using the secret key. The result of this process is the electronic signature, which is sent along with the original document. The user’s public key is used to identify themselves externally. This key is used for signature verification and is sent with the signed message. The recipient then decrypts the encrypted copy of the document using the public key. The integrity of the message is verified by comparing the original document with the decrypted copy.
Such a method, which is based on the use of a secret key and a freely available key, is called an asymmetric cryptographic method.
Electronic Signatures and Document Security
An electronic signature does not protect your document from unauthorised access, just as a handwritten signature on a paper document does not protect it from unauthorised viewing. For that, you must also encrypt the document, which is often offered as an additional option in the application software.
Levels of Electronic Signature
With the implementation of the eIDAS Regulation, there are now uniform EU-wide requirements for electronic signatures. Three levels of signatures are distinguished:
1. Electronic Signature (Simple Signature)
The simple electronic signature is the weakest form and is suitable for transactions with low legal risk. Technically, an electronic signature can be created, for example, by sending it via email or by inserting the signatory’s name into a document.
2. Advanced Electronic Signature
This form of electronic signature can be uniquely attributed to a signatory and is therefore suitable for transactions of medium legal risk. Many different international standards enable its technical implementation, such as PGP or S/MIME.
3. Qualified Electronic Signature (QES)
The qualified electronic signature offers the highest level of legal validity among digital signatures and is therefore equivalent to a handwritten signature. The QES is suitable for all transactions where a handwritten signature is legally required (e.g., consumer loans or temporary employment contracts).
Applications and Advantages of Electronic Signatures
With an electronic signature, you can take advantage of all the benefits of online communication: convenience, speed, and cost-efficiency. Using a signature card, an electronic signature is generated, ensuring that the “signed online communication” is fully legally valid.
The signature card has the same format as a bank card, and its use is very similar: insert the card into the special chip card reader (which provides the connection to the computer), enter the PIN (personal identification number), and you’re done. In this way, the signature card can be used virtually anywhere data or documents need to be processed, signed, and securely transmitted electronically.
| Applications | Advantages |
| Signing electronic documents | Convenience |
| Processing contracts | Speed |
| Processing orders | Cost-efficiency |
| Securely transmitting documents | Supports document integrity |
| Processing data electronically | Helps establish the signatory |
| Signing online communication | Supports legal certainty |
| Using signature cards for document signing | Reduces the need for paper-based processes |
| Verifying signed documents | Helps detect document tampering |
Conclusion
Electronic signatures act as a quick and easy method to electronically sign and authenticate various electronic documents. Electronic signatures aid in providing authenticity and integrity to electronic documents and electronic communication. There are different forms of electronic signatures that are available for different legal and business needs. As the digital transfer market accelerates, electronic signatures can ease document handling and protect electronic transmission.
Also Read: Proactively Protect Endpoints With EDR Developments