Digital Signature vs. Online Notarization

What is the term “digital signature” exactly?

Digital signature represents an electronic kind of a signature that enables the person to verify his identity as the receiver of the message or as the author of the document. Besides, it can also be used to confirm the content in the message or the document which has been sent is still the same as it was at the beginning. Encryption, as well as public key infrastructure (PKI) technology, are the tools that are implemented by digital signatures to provide assurance that the identity of the user is verified and that the user’s data is protected.

E-signature and Digital Signature are they like one and the same thing?

No, digital signature and e-signature are not synonymous. A digital signature is a combination of encryption technology to verify a message and a document, while an e-signature is a person’s endorsement that is typed or drawn in an electronically transmitted agreement, transaction or record. It is important that you notice that some companies might be registering a digital signature as an e-signature and vice versa which can cause confusion. Check with a company to see if they are using the most appropriate encryption method for your purposes.

There is a strong likelihood that the order was made using e-signature technology

What is Online Notarization?

Online notarization is a process that involves a notary public who is qualified and uses video conferencing, a webcam, or other approved methods by the laws of the state to confirm the individual’s identity. The notary is then to sign and seal the electronic documents with special software and send them to all parties involved in the transaction. Besides, the notarized documents can be presented as evidence in court or to prove the legality of business transactions among other legal issues.

How do Digital Signatures and Online Notarizations Differ?

One of the primary distinctions between digital signatures and online notarization is that digital signatures refer to the degree of security through which each of them is provided. Digital signatures are, in fact, a safe method to ascertain the origin of messages or documents, yet online notarization has the advantage of receiving an added layer of security for the process. Such a process means having a notary, who is a professional, check the signer’s identity first

Moreover, online notarization can be utilized in various situations such as rejecting documents and messages since being legally enforceable it can be represented in the court at the time of need. But, digital signatures cannot vouch as legally valid documents in any case.

At last, even though digital signatures are carrying out the task of securing the identity of the person from whom the message or document was sent and at the same time guarding against the manipulative actions regarding changes in the content of the original document, they cannot be said to serve as legal documents. Meanwhile, online notarization can also act as a means of developing legal documents.

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Which business scenario suits better: Digital Signature or Online Notarization?

Technology used, and the application of digital signatures or online notary services mostly depends on the business’ core functionality. In case you seek the means of quickly and safely authenticating your documents and transmitting your messages, digital signatures will be the most suitable option for you.

If you are looking for legally binding documents that can be presented in court, then online notarization will be your only choice. At the end of the day, it is essential to think about your business’ particular needs and the kind of security that is needed to get the week out of your documents.