What are digital signatures, and how are they useful in business?

The world has gone digital. This pandemic has compelled us to adapt to location-agnostic modes of executing business. Remote work and e-conferences have replaced the traditional office setups and meet-&-greets. Of course, e-mail has been around for over three decades now, followed by encrypted ways to transfer information and documentation. However, we still lag in processes wherein these documents need to be attested, approved, or authenticated. Even if you have an impeccable reputation for keeping your word, you still need to sign a contract or agreement to take things forward. And that's where all your efforts of going digital take a kickback.

For instance, let's consider a business proposal workflow. First, all concerning parties read the offer document. Then, some of them may suggest amendments. So, a new copy circulates from one desk to another. Then, all participants receive a hard copy; they sign and arrange for copies of the document to return to the source, participants, and administrative staff for storage & safe-keeping. This process involves a lot of coordination, and as files journey back and forth, you may more often than not lose papers in transit, shipping, or handling.

Imagine multiple persons handling a set of documents over and over. Isn’t that a health hazard in today’s scenario? Besides, logistical employees or administrative and clerical staff may gain access to sensitive information. This poses a security threat as the integrity of the files being transferred may be compromised. They can be tampered with, edited, or deleted. If you have an excellent legal team backing you, conducting due diligence for the same file may be feasible, but repetitive documents and tasks have lower efficiency rates, which means your attorney may not realize minor edits, and sometimes these minor clauses can lead to major problems!

But now, this last straw has also been addressed, and finally, we have a modern alternative to conclude agreements and documents digitally. So what's the solution, you ask.

ThINK Digital!

In this day and age, businesses may find it hard to sustain without digital workflows. If all other processes have become automated or digital, one cannot afford to ignore digital signatures. Forget conventional paper and pens. Handwritten or wet-inked signatures can be forged. Moreover, acquiring them is time-consuming and a lot more expensive when considering the shipping and meeting in-person alternatives, one of which we described above. Inked signatures on physical documents also require additional storage and handling facilities.

We have quick and efficient digital signatures on the other side of the spectrum. They streamline processes, and users can access their files from anywhere, anytime. Digital signatures have multiple in-built security features that dissuade malicious intent. Through robust audit trails, status, and access history, digitally signed documents are easy to manage and leave no scope for error.

The truth is, although this may seem like news to you, electronic signatures have existed for over a decade now, but not everyone is acquainted with the concept. IT companies, the finance sector, and legal firms have been reaping the benefits of going entirely digital for almost a decade. However, the last couple of years has brought this well-kept secret into the limelight. As a result, more industries are looking for location-agnostic options to prevent glitches, allowing businesses to continue. Just look at the statistics; the global digital signature market size was valued at $3.56 billion in 2020 but is projected to reach a staggering $61.91 billion by 2030, growing at a CAGR of 33.2% from 2021 to 2030. Of course, the ongoing pandemic contributed to this growth by highlighting areas of business that have been stagnating in obsolete processes. 

But, what are Digital Signatures?

Remember the times a fingerprint authenticated documents? Digital signatures are just like digital fingerprints. Digital signatures contain encrypted messages that securely link the signer with a sealed and recorded file that can be accessed on a cloud. They rely on PKI (public key infrastructure) technology, a form of blockchain coding that secures the document. It guarantees the authenticity of a file via digital cryptography, ensuring a sealed file remains unmodified. A mathematical scheme makes it possible to use digital signatures as virtual fingerprints. Because, just like every person has a unique fingerprint, their digital signature is unique and can be verified and traced. But, digital signatures also offer confirmation that no distortion has occurred after it has been signed and sealed and hence are more reliable than any other form of authentication.

What is the differencebetween electronic signatures and digital signatures? Read all about it in our blog. 

It’s time to do things the new way

Don’t Just Sign; DrySign!

Electronic signatures solutions that use digital signature technology permit users to sign documents online while maintaining their legal value, just as an inked signature that is legally binding on all consenting parties as per the terms in the document. This alternative is highly cost-effective when considering the resources saved in the bargain. It expedites the signing process and eliminates the need to seek appointments, trace, and constantly remind officials to sign a specific document. What's great is that all this efficiency comes with enhanced security, making it the clear winner. It is no longer a privilege accessible only to the technologically savvy sectors. It has become a necessity. For businesses to function smoothly, digital signatures provide the stability and flexibility that the ongoing crisis demands.

Why Digital Signatures?

Digital signatures have existed for over a decade now, but the coronavirus highlighted the advantages of remote workflows and digital processes. Since a considerable fraction of the population isn't accustomed to digital signatures, they may be skeptical about its use and validity. Nevertheless, digital signatures are legally recognized in most countries. A digitally signed document holds as much value as a handwritten signature. SMBs and big enterprises alike across industries have begun reaping the benefits of digital signatures. It's time you incorporated this tool into your business too.

Digital Signatures are a better alternative compared to traditional handwritten signatures as they are:

1. The safest method: Digital signatures are encrypted with superior technology. Digitally signed documents cannot be altered, duplicated, or tampered with through blockchain and Public Key Infrastructure (PKI) technology.

2. The Quickest Method: When a professional is logistically unavailable to sign urgent documents, digital signatures allow corporates to execute processes at their convenience.

3. The Cheapest Method: Imagine the amount you'd save by leaving out unwarranted stationery, shipping & handling, arranging meetings, travel & accommodation, and finally, commercial rent spent on storage facilities. With digital workflows, all of these can be eliminated.

4.  The Most Efficient Method: With digital workflows, managing and tracking documents are easier. Features that allow for notifications, reminders, and status tracking hasten receipt and completion of documentation. None of this is possible with conventional workflows.

The Process:

By providing your clients with options that facilitate smooth operations, you can expedite a pitch and effortlessly transform it into a sale or contract with the help of digitally signed documentation. Here is how it works:

• Step 1: The sender chooses the file or document on the electronic signature platform
• Step 2: The sender’s computer calculates the unique hash value of the selected file
• Step 2: The electronic signature application encrypts this hash value within the sender's public and private keys
• Step 2: The recipients receive and open the document 
• Step 2: Every recipient can individually open the document requiring attestation from the convenience of their location and review it accordingly
• Step 2: The recipient’s computer decrypts the sender’s public key
• Step 2: The receiver’s computer computes the hash code of the received file and compares it 
• Step 3: Upon viewing the document's contents, there will be apparent disclosures of the legal validity of e-signatures.
• Step 4: The recipients upload their signatures wherever indicated, and the same process is followed to seal the document
• Step 5: Recipients may download the document for record purposes. Additionally, copies can be e-mailed and saved on a cloud so all participants can access authorized documents.

Easy, isn't it? Now, let's look at some of the safety features inbuilt into digital signatures. Here’s why signing digitally is safer than conventional handwritten signatures:

• Authentication: Digital signatures are created using the sender's private encryption key, ensuring the message's source identification.

• Public Key Infrastructure: After signing, the document is digitally sealed using PKI technology which validates the e-signatures within a document attesting that the file has not been modified in any way.

•  Data Integrity: Even if we assume that a document has been intercepted with an attempt to alter it, the digital certificate verification performed by the recipient fails, making a security breach attempt known.

• Non-repudiation: While using digital signatures, both the sender's and receivers' interests are protected. The sender can trace their private key while the receiver can verify their identity.

• Certificate of Completion: Upon successful signing and completion of a document, the specific and unique details from each signer, including timestamps, IP addresses, consumer and agreement disclosure, and other such information, are automatically captured and recorded.

• Robust Audit Trail: An entire audit trail is maintained, backed by solid timestamps, verification, source trail, and location history with traceable workflows.

• Tamper Proof: Documents are not subject to being over-processed through repetitive scanning and photocopying. So, the integrity of the file is maintained.

• Firewalls and Malware Protection: In addition to the above-listed technology, digital signatures offer essential protection from malware with commercial-grade firewalls and border routers to detect IP-based service attacks. 

• Confidential Access: User privacy is maintained by omitting intermediaries such as clerks and assistants, so no one gains access to sensitive information.

Digital signatures have enhanced security features with a much lower risk probability than handwritten signatures. Exela's DrySign is a highly advanced electronic signature platform that is rapidly changing how companies authenticate, attest, and authorize documents. With technologically advanced e-signing solutions like DrySign, businesses now have the opportunity to secure themselves against theft, forgery, cybercrimes, and data leaks in an effective manner, elevating and revolutionizing the signing and documentation process.

So, what about you? Are you ready to embrace new-age solutions that can simplify, expedite, and secure your document workflows? Do you wish to reinforce your files through methods that discourage fraud? Do you yearn for a quicker-but-safe way to seal contracts and deals? If your reply to these questions is 'yes,' it's time you learn about Exela DrySign, the modern and safe way to sign! 

Statistical Data Source: https://www.alliedmarketresearch.com/digital-signature-market

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.