Introduction
This guide is a comprehensive resource where you can find answers to all your questions related to digital signatures and digital signature software. It will help you understand how digital signature software works, the do's and don'ts of its implementation, and other key aspects of its use in business. There are four parts to this beginner's guide: an introduction to digital signature software, an overview of the different types of digital signature software, a section on the laws regarding digital signatures, and a discussion over the application of digital signatures in various domains.
What is a digital signature?
Digital signatures are the modern day alternative to handwritten signatures used on documents as proof of identity. Today, digitally signed documents also have the same legal standing as handwritten signatures. They have been designed to help individuals and companies sign off on business documents from anywhere without requiring their physical presence. Digital signatures are generally validated by certificate authorities or trust service providers to verify their security and authenticity.
What is digital signature software?
To facilitate the digital document signing process, businesses need software which can help them securely sign, send, and manage documents. With this, they can improve the overall collaboration and productivity within their company.
How it works
- Digital signatures rely on the public key cryptography mechanism—where encryption and decryption of data take place using a pair of public and private keys.
- Whenever you sign a document with a digital signature, a cryptographic hash will be generated for the document with your private key and the encrypted hash will be appended to the document.
- Then, the document will be signed with your private key and sent to the recipients with your public key certificate.
- The recipients will decrypt the hash value with the sender's public key.
- If the cryptographic hash values match with each other, the document is considered legit.
- This assures authenticity and integrity far superior to an ordinary signature.
Some of the key features of digital signature software include:
Document signing
Ability to import and sign business documents easily and securely
Signing workflows
Allow users to define the signing order when sending out a document to multiple recipients
Track document progress
Know who has signed and who are yet to sign your documents
Notifications and reminders
Choose to inform signers and requesters about the status of the signature process
Bulk sending
Ability to send documents to multiple recipients
Audit trails
Comprehensive audit trails and reports that track user activities 24/7
Regulatory compliance
Adheres to all current laws and offers the highest levels of data security and privacy
Rebranding
Option to customize the software, legal disclosure, and email templates based on your company's requirements
Integrations
Works with popular apps and also offers APIs to build custom integrations
Signer verification
To ensure signer accountability and document confidentiality, authenticate and verify signer identity via SMS/email one-time passwords (OTP), knowledge-based authentication (KBA), and other government ID-based procedures.
Advanced Electronic Signatures
These are electronic signatures provisioned as digital signature certificates issued directly to individuals and organizations after stringent identity verification processes. The sole control and possession of advanced electronic signatures lie with whom they have been issued to.
Qualified Electronic Signatures
Qualified electronic signatures are a form of advanced electronic signatures that are provided by Qualified Trust Service Providers, helping meet strict electronic signature regulations established in regions like the European Union.
In-person signing
Collect signatures from recipients in remote areas or locations with minimal connectivity by assigning the responsibility to an agent within your organization who can meet with the recipients in person with in-person signing.
SignForms
Collect signatures via self-service workflows distributed as public URLs using SignForms; embed signing links into webpages without additional integrations or coding.
Templates
Convert documents that are frequently reused into templates to send them out quickly for signing.
Various digital signature software options
Digital signature software can be classified into four types based on the delivery, licensing, and type of customers, as listed below:
Cloud
In this model, the digital signature software is delivered as a service (SaaS) and it works on all platforms with a standard internet connection. Many modern companies will prefer this model since it doesn't cost anything upfront to set up the infrastructure and maintenance. Licensing will be based on the number of users, who will be billed either monthly or annually.
On-premises
In this model, the software is installed on the customer's servers and will be maintained by them periodically. Each user installs the software on their machines locally and they access the service from their browser. This model works like a client-server. Licensing options are mostly offered annually, or perpetually, with additional maintenance costs.
Enterprise
In this model, the software is highly feature-rich and customizable based on the organization's requirements. It can be automated and has the ability to integrate with already-existing applications and services used by the company. Licensing options vary significantly for an enterprise program—customers are charged separately for each service including consultation, implementation, and maintenance.
Open-source
In this model, the software's code is offered to the public, often for free. Companies that have a strong in-house development team and lower budget will opt for this model.
E-signature vs digital signature
The terms e-signature and digital signature are often used interchangeably, however, they are actually two different things.
ELECTRONIC SIGNATURE
DIGITAL SIGNATURE
E-signatures are digital images of handwritten signatures appended to a document
A digital signature is a type of e-signature, which also contains one or more characters in digital format, representing an individual's identity which is also attached to the document
E-signatures can use any type of electronic authentication method
Digital signatures use the public key cryptography technique
Legally accepted
Legally accepted
Less security when compared to digital signatures
Higher security—ensures authenticity and non-repudiation
Legality
Digital signatures are legal and accepted in courts of law across the globe. However, the laws governing them vary from one country to another.
What are the current laws related to digital signatures?
E-sign act 2000
ECTA 2002
eIDAS 2014
ETA (Australia) 1999
ITA 2000
Which prominent countries accept digital signatures?
Country
Accepted
in court?
Accepted
in business?
Where can I learn more?
Digital signatures are compliant with and regulated by different laws across the globe. To understand the validity and legality of digital signatures, refer to our legality guide.
Applications
Digital signatures are used in various departments for different purposes. Below is the list of the most common use-cases for digital signatures:
Sales
Obtaining a customer's signature during a product sign-up
Obtaining consent from customers with their signatures
Signing press releases
Obtaining signatures from attendees during official events and training
Adding or terminating a new vendor
Signing a partnership agreement
Signing sales processing
Integration with CRM software
Human Resources
Onboarding and off-boarding employees
Signing NDAs
Signing company policy agreements
Applying and granting leave
Finance
Signing internal and external audits.
Signing expense reports.
Signing invoices.
Asset management.
Signing loan agreements.
Information technology
Asset management
Change management
IT policy management
Release management
Product roadmap
Legal
Signing business contracts and agreements
Signing Non-Disclosure Agreements (NDA)
Signing business contracts
Signing the board's minutes of meeting for compliance
Policy management
Lease agreements
Marketing
Influencer or partner agreements
Non-disclosure agreements
Onboarding customers
Signing off on marketing campaigns
Facilities
Purchase requests/schedules
Work orders/agreements
Labor contracts
Front desk management
Lease agreements
Support
Self-service requests
Field services
Terms change
Product management
Change management
Release management
Code reviews
Procurement
Purchase orders
RFPs
Service agreements
About Zoho Sign
Zoho Sign is digital signature software for businesses. It helps securely sign, send, and manage legally-binding business documents from anywhere. Zoho Sign leverages the public key infrastructure to provide the highest levels of data security while complying with the current ESIGN and eIDAS regulations. The software is available in three editions and seven languages. Zoho Sign offers three licensing options—Standard, Professional, and Enterprise—priced per user, per month. For more information on Zoho Sign, please visit