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What is E-Signature and How to Sign Electronic Documents?

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As our work culture is becoming more technologically advanced, the value and convenience of e-signatures have gained a lot of popularity. Initially, the primary users of e-signature technology were businesses and organisations that had to execute contracts and legal documents electronically. However, today, all document types, including tax returns and real estate transactions, already use e-signature technology.

Even while an e-signature sounds straightforward, it is backed by state-of-the-art technology and governed by rules, regulations, and standards that ensure its security and legitimacy. The ability to electronically sign papers is made possible by e-signature technology, which is covered first in detail in this article.



What is an E-Signature?

An electronic signature, also known as an e-signature, is the digital version of a traditional written signature. It is a procedure that confirms the signer's identity or digitally certifies a document's authenticity. Using e-signature technology, participants can confirm or assent to a document without using paper and ink, just like they would with handwritten signatures.

Notably, an electronic signature is binding in many countries and carries the same legal weight as a handwritten signature. It is vital to keep in mind that the terms "e-signature" and "digital signature," despite the fact that they are frequently confused, are not synonymous. An advanced form of e-signature that makes use of state-of-the-art technology for security and compliance is called a digital signature.

Understanding E-Signature Laws

It's crucial to understand the rules governing e-signatures even though their use has grown mainstream. For legal purposes, most countries worldwide accept e-signatures in place of traditional handwritten ones. It is supported by laws like the US's ESIGN Act, Europe's eIDAS, and similar laws in other countries.

These rules stipulate that just because a contract or signature was completed electronically, it does not negate its legal force or effect. Not every electronic signature is legally enforceable, and this is something that should be noted. Having a means of verifying the signer's identity and obtaining both signing parties' express approval are just two of the conditions they must meet.

The Science Behind an E-Signature

Complex algorithms and encryption techniques are used in e-signature science to guarantee the integrity and security of the signed document. It is not just a digital copy of your handwritten signature that you get when you produce an e-signature. The first step in its process is creating a digital ID, which consists of your name, email address, and public key. Every document generated with this ID is then encrypted with your private key to create a distinct digital signature.

A document you electronically sign can be decrypted by someone using your public key when they receive it. It is verified that you indeed signed the document and that it hasn't been altered since the decoded signature matches the document's contents.

Advantages of Electronic Signatures

Approximately 3 out of 4 users say that using e-signatures to sign documents is simple. Both users and non-users alike think electronic signatures are more secure than handwritten ones. Because of its many advantages, e-signatures are a popular option among both individuals and corporations. The following are some of the main benefits:

1. Enhanced Effectiveness

By using e-signatures, receivers can sign papers more quickly and electronically. A study found that using electronic signatures on documents rather than paper ones saves firms 55-78% on administrative costs.

2. Increased Safety

Because they use cutting-edge encryption technology to shield your documents from fraud and tampering, e-signatures are extremely safe.

3. Legally Binding

E-signatures, like their handwritten counterparts, are legally binding in many countries, provided they meet certain criteria. This makes them a trusted and enforceable tool for document validation around the world.

4. Budget-Friendly

Businesses can streamline their processes and reduce costs by using e-signatures. It can also save them money on materials by using less paper, further helping them in their environmental initiatives.

5. Versatile

E-signatures bring efficiency to various departments and industries, from finance, HR, IT, and marketing to sales. They are applicable in many scenarios where handwritten signatures are used, such as contracts, transactions, and administrative procedures.

How to Sign Electronic Documents

Here's a step-by-step guide on how to sign electronic documents as a Transformify member:

  1. A notification will appear in the reminder area of your dashboard when a partner emails you an electronic document.

  2. Press the notification icon to open the file. The "Documents" area will be the destination of your redirect.

  3. Choose the document that needs to be signed from the list under "To Be Signed by Me" in the "Documents" section.

  4. Click "Sign" after selecting the document you wish to sign.

  5. You will have the option to electronically sign the document once it opens.

  6. The document will be immediately filed in the relevant folder after you have signed it.

You can quickly sign electronic documents that partners provide you on Transformify by following these procedures, and you can make sure the documents are correctly filed in the appropriate folders for your documentation.

Compliance and Security

In addition to being practical, e-signatures are safe. They employ several security measures, such as encryption and authentication, to ensure that the signature and the document are secure. An extensive audit trail is another feature that many e-signature systems provide. It records the signer's name, IP address, device used, and the date and time of signing. These details could be important in the event of a contract dispute.

E-signatures have been made lawful in many nations so that they can adhere to rules. For instance, the E-Sign Act in the US attests to the legitimacy of e-signatures, while the eIDAS regulation dominates in the EU. Before employing e-signatures, it's always a good idea to check local legislation, as different jurisdictions may have different standards regarding official compliance.


Hence, using e-signatures has enabled a quicker, more secure, and ecologically sustainable approach to acquiring paper signatures. Enterprises and individuals alike can benefit from e-signature technology, whether they want to expedite their document management process or simply sign a personal document. However, keep in mind that understanding e-signatures' operation and selecting the one that best meets your demands is vital in ensuring the security and efficiency of your digital transactions while also maintaining legal compliance and enhancing your overall user experience.