Digital signature or electronic signature: which one does your document need?
People use “electronic signature” and “digital signature” as if they were the same thing. They are not, and the difference decides how much a signature is worth when someone disputes it.
Electronic signature: the broad idea
An electronic signature is any electronic mark that shows someone meant to sign. It can be:
- a name typed at the bottom of an email,
- a squiggle drawn on a touchscreen,
- a box ticked next to “I agree”,
- a code typed in after it was sent by SMS.
All of these record that something happened. None of them, by themselves, join a particular person to a particular file in a way anyone can check afterwards.
Digital signature: one specific kind
A digital signature is a kind of electronic signature built on cryptography. It is calculated from the document and a private key, and it comes with a certificate that names the holder of the key.
That gives it two properties the other kinds lack.
- It is tied to the exact file. Change one character and the signature stops matching.
- It is tied to a named person. The certificate says whose key it is and which authority checked.
A comparison
| Typed name or squiggle | Tick box | SMS code | Digital signature | |
|---|---|---|---|---|
| Shows intent to sign | Yes | Yes | Yes | Yes |
| Tied to the exact file | No | No | No | Yes |
| Change after signing is detectable | No | No | No | Yes |
| Names a verified person | No | No | Only a phone | Yes |
| Can be checked by a third party | No | No | No | Yes |
Choosing
Ask what you will have to prove if the document is disputed.
- If it is a low-stakes acknowledgement, a tick box may be enough.
- If it is a loan, a contract or anything where the other side might later say “that is not what I signed” or “that was not me”, you want a signature that is tied to the file and to a person.
Then ask what the law needs. In Nepal, Section 5 of the Electronic Transactions Act, 2063 gives legal validity to a digital signature made by the procedures in the Act. It is the route the law spells out for a document that must be signed.
For why an SMS code is a weak substitute in a loan dispute, see OTP or digital signature.
Questions people ask
Is an electronic signature legally valid in Nepal?
The Electronic Transactions Act, 2063 gives legal validity to a digital signature made by its procedures. Whether another kind of electronic mark is enough depends on the document and the law that governs it.
Is clicking I agree a digital signature?
No. Clicking a box records an action. It is not a digital signature, because it is not calculated from the document and a private key.
Which is stronger as evidence?
A digital signature, because it ties a named certificate holder to the exact bytes of one file, and any later change is detectable.