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How Digital Signatures Protect the Integrity of Electronic Documents

How Secure are Digital Signatures for Online Transactions?

Vijith Menon

Information is primary to making the right decisions. Organizations prioritize it, and clients swear by it. But in the digital world, information is converted to data to give it a layer of security.

But as the internet evolved, so have the users. Data has been compromised, costing a fortune to companies leading to companies changing their strategy and business model overnight. Organizations need to modernize their practices to ensure to protect their customers. They are known for their approach to managing their data and addressing the challenges.

The Need to Address Gaps in Online Security

The risk of data breaches is a cause for concern among reputed businesses. It has led to compromising situations culminating in financial losses, damaged reputations, and consequences for companies and customers.

Companies need to address gaps in online security by being aware of cybersecurity risks. They need to create awareness initiatives to protect data from endpoint to endpoint. Moreover, it is necessary to implement cybersecurity measures like two-factor authentication to minimize data vulnerabilities and educate employees.

Data security threats include a large number of risks, including malicious actors looking to attain customer data, data loss or destruction, and breach of contracts. The threats can be minimized by proactively approaching online security and safeguarding data.

What is a Digital Signature, and How Does it Work? 

Digital signatures provide a secure method of signing documents online. It is based on public-key infrastructure (PKI), a group of policies, hardware, and software for using, managing, storing, and distributing digital certificates.

It uses private and public keys to validate a person’s signature. The signature isn’t intended for confidentiality. A sender can use the private key to produce a signature, while the recipient with the public key can verify it’s the same user.

It prevents forgery by depending on the trust between two individuals or parties. For example, the information in a digital document will be valid if it is verified through a private and public key.

Is a Digital Signature More Secure? 

Digital signatures utilize asymmetric encryption to secure transactions. Asymmetric encryption, or public-key cryptography, uses a pair of keys for secure data encryption and decryption. It involves a public key, shared openly, and a private key, kept secret. The sender encrypts data with the recipient's public key, and the recipient decrypts it with their private key. This method enables secure communication without sharing a common secret key. Asymmetric encryption finds wide applications in secure online communication, digital signatures, and secure data transfer.

Advantages of Asymmetric Encryption 

  • Enhanced Security - Asymmetric encryption offers higher security than symmetric encryption, using different keys for encryption and decryption. The private key, known only to the receiver, makes data interception and decryption more challenging for attackers.

  • Authentication - Asymmetric encryption enables authentication, where the receiver verifies the sender's identity. The sender is able to encrypt the message with their private key, and only the corresponding public key can decrypt it. Successful decryption proves the sender's authenticity.

  • Non-repudiation - With asymmetric encryption, non-repudiation is ensured. The sender cannot deny sending or altering the message because it's encrypted with their private key. The receiver can be certain of the message's origin and integrity.

  • Key Distribution - Asymmetric encryption foregoes the need for a secure key distribution system required in symmetric encryption. Public keys can be openly shared, while the receiver keeps private keys secret.

  • Versatility - Asymmetric encryption finds use in various applications like secure email communication, online banking, e-commerce, and secure SSL/TSL connections for internet traffic.

Are Digital Signatures Legal? 

Yes, digital signatures are legally valid in the United States. They are recognized in the court of law, the same as their manual counterparts. They have been defined for electronic use by organizations under the Electronic Signatures in Global and National Commerce Act (ESIGN) and state and territory versions of the Uniform Electronic Transactions Act (UETA).

Since the validity of digital signatures is challenged, a digital signature is considered valid if the signer intended to sign the electronic record of their own accord, the e-signature is attached to the document, the signer has a copy of the record, and the signed document is maintained to preserve its integrity.

Don’t Miss to Read: 8 Benefits of E-Signature Services that Enhance Security in Your PDF Contracts

How Electronic Signatures Benefit Industries 

E-signature solutions have become essential for various industries, facilitating accelerated approval processes, simplified remote transactions, and enhanced data security. Implementing eSignatures expedites contract turnaround times, enabling quick responses to customer demands and market opportunities. The convenience of remote working fosters global collaborations and removes geographical barriers, streamlining business operations across borders.

Here are some advantages that would help them smoothen customer experiences:

  • Paperless Workflow – Digital signatures facilitate in secure data transfer and encourage a paperless workflow. It improves communication between departments and reduces energy wastage. Investing in paperless systems minimizes errors and ensures the data is secure, organized, and accessible.

  • Templates – Electronic signature solutions create templates of confidential agreements. This prevents the continuous printing and faxing of documents. Customized agreements help in fostering business relationships and building a strong supply chain.

  • Secure Document Exchange – Digital signature users can facilitate the secure exchange of documents through a shared medium. They transparently provide information, and a timestamp accompanies any changes. A real-time mail trail provides a history of any modifications done by either party. This can be used in deeming the document as invalid.

  • Cloud Storage – E-signature solutions store documents securely on the cloud. This keeps the information safe from malicious actors or online threats. Companies can use it for team collaboration and enhancing their client relationships. Moreover, it is flexible and lets teams access information on any device.

  • Save on Costs – Digital signatures can save on unnecessary costs. Going paperless assists companies in removing maintenance, printing, and storage costs.

What is DrySign? 

DrySign, the leading eSignature solution, facilitates seamless transactions between partners and streamlines collaborative efforts for various deals. With its comprehensive digital signature solutions, firms can effortlessly collaborate and finalize contracts, agreements, financial documents, proposals, and more. DrySign ensures swift, legally compliant, and highly reliable processes.

By adopting DrySign, you can optimize your time, effort, and resources. Say goodbye to the challenges associated with traditional paper-based processes, such as chasing down stakeholders and bearing printing and storage costs. Embracing digital signatures guarantees document integrity and creates a transparent mail trail, recording any modifications made.

Experience a faster signing process that empowers teams to be more productive. Get started with DrySign today, and unleash the true potential of your business! Try our Free version and witness the transformation for yourself.


The future of data protection requires an approach to safeguarding the data from compromise, corruption, or loss. Proper protocols must be established to allow access to authorized personnel to sensitive documents. Companies regularly store sensitive information on clients, business partners, and others. Data protection is a legal necessity to protect business relationships' trust and maintain your reputation.

Since the pandemic, customers have been willing to sever ties with companies that break their trust. Since a method is required to trust the validity of processes and the authenticity of users, digital signatures are a secure method. The measures within digital signature solutions ensure documents are untampered and the identity of signers is proven.

Digital signatures employ public-key infrastructure to protect users. A real-time mail trail assures the authenticity of all signers and the validity of associated documents. One-time passwords and two-factor authentication are security measures to provide access to the right user.

Unlock better security with DrySign!

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.

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