Digital signature

A signature is the authoritative power of a person and is done on paper. Before digitization, a signature done by a human physically by hand was given preference, whereas the involvement of technology signature method also changed.

With the involvement of technology in day-to-day transactions, all individuals and organizations use digital documents instead of paper documents.

Digital signature means the signature done with the help of digital technology on the document, and this technique ensures the integrity and authenticity of the document. Using digital documents also protect the environment and planet resources, as consumption of paper decreases, and it also ensures the support of the validity and authenticity of a digital document.

“ Signature is the confirmation of the written information by the signer and can’t be altered further so as digital signature that confirm the authentication of digital information.”

“Digital signature is an electronic mathematical technique that provide authentication ,integrity guarantee of the document consist of encrypted information such as macros, email messages or electronic documents.”

The problem of tampering and impersonation of digital documents in communication is common in technology, but digital signatures solve this.

A digital signature is a user stamp on the digital document and messages and ensures that information remains the same after the transaction. The digital signature also includes information like the message's status, origin, and consent by the signer, and data integrity & authenticity are ensured by the public key infrastructure (industry-standard technology).

Digital signatures are equivalent to traditional document signatures in some parts of the world, such as APAC, parts of North America, and the European Union, used for software distribution and financial transactions, areas where the authenticity and integrity of digital communications are crucial.

Benefits/ Advantages of digital signature

Some of the major benefits and advantages of digital signatures in the cyber industry and cyber security are as follows:-

It saves both time and cost.

Yes, this is the primary reason for designing digital signatures, as in previous times, workers have to wait for the boss to take their signature on the legal papers and contract. Still, with digital signatures, it takes no time. Sometimes many parties have to sign an official contract, document, or agreement, so now there is no need to send a courier to all the recipients and wait for their signature due to digital signature because all the official papers are delivered and authenticated online at a very fast rate.  

Digitally signing documents are not equivalent to paper signing regarding time management and ease of use. If we make the sale process example, many signatures have to be gathered from different individuals. Still, the administrative burden can hinder the sale or completely cancel the agreement. Instead of waiting for the other party's signature, lengthen the process. So, e-signatures are the best for business in terms of cost-saving and money also.

Customer service enhanced

After the pandemic, 90% of business has chosen digital platform for their work.

With everything being digitized, the major digital growth comes from iPhones and smartphones because most businesses are carried out from personal mobile phones like online selling and buying. So to save time, cost, and energy, customer and business holders prefer digital signing as it is a very simple procedure that helps maintain customers' loyalty.  

Provide future validity

Digital signatures are valid for the foreseeable future as ETSI PDF signatures provide their validity for the future with their long-term signature formats. E-signature ensures the future validity of any official document.

Authenticity

A digital signature provides authenticity by verifying the document legally with the validity benefit.

With the new technology, E-signed invoices validate the signature's authenticity as these contain information like the sender is authenticated, timestamp, location, contract, and reason.

One can stand in any court of law with the signature document. We can track the document by timestamping plus the ability and archive the document at compliance and audit time.
Faster and easier payment
With e-signature, one can easily streamline the generation of legal agreements, other paperwork, and invoices that take lots of time to close due to ink signature. This can also help close a sale, sign a contract, or close the document from several parties with an e-signature. The business concludes with further payment when the contract signing formality occurs.   

High standard

A digital signature uses the PKI standard for protecting data. Encryption standards use public-key encryption to keep data encrypted. Public key encryption runs an algorithm in which a vendor generates two "keys," private or public, and the lengthy numbers that define the signature. Vendors keep the keys safely and securely. The trustworthy Certificate Authority ensures this security.

The standard follows these steps: 1) Vendor facilitates the creation of signature to the signer that signs the document electronically using the private key. The signer has the authority to access his safe and secure key. Data matches the "hash" (signed document in function) using an encrypted code, and the same data is encrypted for use. 

After that, any alteration to the original document will invalidate it, and this fact is supported by the long-term security of the data, the document, and the signature. That also consists of a date stamp to verify the time of signing.

Environmental and nature friendly

Yes, it is the most important benefit of e-signing and digital signatures. They minimize the cost paid for the paper, cut thousands of trees to make paper, make paper charges, and waste paper. Using a digital signature, a business or individual directly indicates to partners, stakeholders, employees, and customers how caring they are about nature and the environment.

Provide legal validity of

the document
Digital signatures are the best for the document's validity as they are valid for years even if technology has advanced.

No fraud

Paper document signing does not contain any security as they can be forged easily, but a digital signature eliminates the risk of forgery. A unique digital identity backs up digital signatures by accepting public key infrastructure standards.    

Business efficiency

Digital signatures are great for any shape and size of business with less workflow time and faster contract turnaround time. One of the great advantages of integrating e-sign in business is that its cost in the work processes is very low.

Workflow efficiency

The digital signature ensures the top level of work efficiency by making lesser delays in work (using less effort and work). Lots of features of digital signature help in managing and tracking documents that speed up the work process.

For example, tracking status helps track the document's current stage, and email notification reminds the person to sign it.  

Better customer experience

A digital signature provides a better customer experience in the business by giving customers the convenience of signing important documents wherever the customer is related. The salesperson doesn't need to go to the customer's doorstep to sign, or the customer has to come to the bank or office.

This option is ideal in small townships and remote access areas that provide personalized and improved services. Customers can stay anywhere and keep connected with the company and takes services. It also makes the business far more quick, easy and user-friendly.   

Lower transaction costs

Electronic signatures lower transaction costs by mitigating the financial implication of human errors like document loss or signing errors. Some errors would be expensive if not detected.

The digital process is more friendly, efficient, and complaint than a paper document finding errors. This electronic tool provides security enhancement that lowers material costs and labor.

Independent verification

A digital signature provides all the detail of the document like location, timestamp, reliability, and validity of document that help in independent verification of the document.

Individual users or businesses/organizations can easily verify all the e-signature.

Global acceptance of the document

Today, most countries in the world accept digital signatures because of security protocols offered by various companies in compliance with international standards in the field.

The government has made two federal acts regarding digital signatures that officially recognize the legality of digital signatures. One is the Electronic Signatures in Global and National Commerce Act of 2000.

Countries like North America, the United Kingdom, and Australia have different needs regarding using digital signatures and electronic items from other countries like South America, European and Asian countries. To cope with this problem, countries adhere to a technology that includes a neutral set of regulations in an open environment where the tiered model of e-signature is implemented to the regular standards. 

Traceability

A digital signature can be easily traced as they create an audit trail that helps business internal record keeping of data. This feature prevents manual signee and record keeper from avoiding mistakes and misplacing something by recording everything and storing it digitally.

Methods and features used in digital signature consist of the following:-

Checksum	It's a data fingerprint, and in a transmission message, it is a value representing the number of bits. IT professionals use checksum values assigned to a piece of data or file to detect high-level errors within data transmission.
Certificate authority validation (CA)	CA’s is a third party that issue the digital signature –certified and trustworthy. It accepts, authenticates, issues, and maintains digital certificates and prevents creating fake digital certificates.
Cyclic redundancy check (CRC)	CRC is used in storage devices and digital networks to detect changes to raw data as it is a verification and error-detecting code.
Asymmetric cryptography	It is an encryption way to protect data, and it works by implementing a public-key algorithm that includes authentication and private & public-key encryption.
Personal identification number(PIN), codes, and passwords	PINs, codes, and passwords are used by emails, passwords, and username methods. A signer's identity is authenticated and verified and even approved their signature.
Trust service provider validation (TSP)	TSP- Trust service provider validation is a legal entity or a person who works on a company's behalf to validate digital signatures and offers validation reports.

Types of digital signature

Class 1	These are basic types of digital signatures used in a low-risk data compromise environment that provide a basic level of security. They are based on an email ID and username; therefore, they can't be used for legal business documents.
Class 2	These signatures authenticate the signer's identity against a pre-verified database and are used in a moderate risk environment of consequences of data compromise. Areas, where these digital signatures are used are income tax returns, electronic filing of tax documents, and goods and service tax returns.
Class 3	These are high-priority digital signatures used in the high-risk environment of data and security failure threats. These are used for e-trending, e-ticketing, e-auctions, and court filling. Here users and organizations have to prove their identity before signing in front of a certifying authority.

How are digital signatures created?

Digital signatures are created by an individual or an entity when they are asked to sign the digital document, and it can proceed easily. Suppose a document is being sent to an individual via email containing a link to the document, and further, these points are followed by an individual:

• Users get the link to the document via email, and it opens the link by clicking it and opening the document in an electronic signature tool.
• Tools ask the user to agree to the electronic signing. When the user clicks yes to an agreement, they used to follow certain instructions to sign or start.
• Now user, adds its signature by adhering to the instructions and clicking each tag.
• Finally, user identity is verified, and it follows the instructions to add the digital signature.

How does a digital signature works?

-Digital signatures are certified and authorized by digital signature services and tools.

Two PKIs have generated public and private keys with a mathematical algorithm.

-When the user signs a document, a cryptographic hash is generated for the document.

-The generated cryptographic hash is encrypted using the sender's private key (stored in a secure HSM box and appended to the document).

-The appended document is sent to the recipient with the sender's public key, and it decrypts the encrypted hash with this key.

-At the recipient end, a cryptographic hash is also generated.

-To check the document's authenticity, both the cryptographic hashes are compared. After comparison, if they match, the document is declared un-tampered and valid.

This is the process:

Where are digital signatures used?

In this techno-savvy world, industries use digital signature technology to improve document integrity and streamline processes to complete work. Digital signatures are used in some the industries like:-

• Healthcare- Healthcare industry uses digital signatures to improve treatment and administrative processes efficiency, for e-prescribing, to strengthen data security and hospital admissions. HIPPA- Health Insurance Portability and Accountability Act (HIPAA) of 1996 of the health industry comply digital signature authority, confidentiality and security.
• Manufacturing – The manufacturing industry uses digital signatures to speed up their working process, including quality assurance (QA) marketing, sales, product design, and manufacturing enhancements. All the digital signature-related functioning in the manufacturing industry is governed by the National Institute of Standards and Technology (NIST), International Organization of Standards (ISO), and Digital Manufacturing Certificate (DMC).
• Government – Worldwide, governments use the digital signature in this techno world because of various reasons like verifying business to government transactions (B2G), managing contracts, processing tax returns, and rectifying laws. The government keeps some strict rules, regulations, laws, and standards regarding digital signatures. Governments and corporations use smart cards to ID their employees and citizens for security reasons. These smart cards are endowed with a digital cardholder signature that makes them accessible by users to the physical buildings or an institution's systems. 
• Financial services- For various purposes, digital signatures are used in the financial sector like loan processing, mortgages, insurance documentation, paperless banking, contracts, etc. In this sector, digital signatures carefully and with full attention to the regulation and guidance stated by the Consumer Financial Protection Bureau(CFPB), Federal Financial Institutions Examinations Council (FFIEC), Electronic Signatures in Global and National Commerce Act (E-Sign Act), and state Uniform Electronic Transactions Act (UETA) regulations.
• Cryptocurrencies –Cryptocurrencies like bitcoin and other uses a digital signature to authenticate the blockchain. Digital signature manages the transaction data and shows user ownership of currency by showing their transaction associated with cryptocurrency. 

Some of the digital signature tools and vendors

Various industries use a digital signature as digital signature tools and services provide effortless, timeless, and contact-less facilities for e-signing. For example, it is best for freelancer writers where they sign a contract and agree to word count and payment by putting an e-signature on the contract/document by using adobe sign. During a pandemic, the need and importance for digital signatures arise as security issues. Some of the digital tools and service providers came out to provide secure services at their best, and these are as follows:-

-Adobe sign [commonly used by all the devices for secure and legal e-signatures]

- Global Sign [used to implement PKI across enterprise environment by using integration, automation, and a host of management tools]

-Sign Easy [provide two facilities, one is API's-application programmer's interface for developers and an e-signing service of the same name to individuals and businesses]

- Docu Sign standard-based services [ensure that digital signature is compatible with existing regulations with the services like Express signature and EU qualified signature. ES is used for basic global transactions, and EUQS complies with EU standards]

- Sign Now [this tool provides easy to use PDF-portable document format signing tool for business, and it's a part of the airplane business cloud]

- Vasco [it provides a product (eSignLive e-signature) as a cloud service and on premise]