eSignatures vs Digital Signatures: What You Need to Know in 2025
- Natalie Lloyd
- Jun 24
- 3 min read
As digital transformation reshapes how we work, so too has the way we sign and manage documents. Traditional pen-and-paper signatures—and even scanned hard copies—are rapidly becoming outdated. In their place, electronic and digital signatures offer a faster, more secure way to handle approvals and agreements in the modern workplace.
But what’s the actual difference between an eSignature and a digital signature? While the terms are often used interchangeably, they serve distinct functions. Understanding how each works is essential for choosing the right solution for your business.
What Is the Difference Between eSignatures and Digital Signatures?
Although often confused, eSignatures and digital signatures are not the same. Each plays a unique role in the document signing process.
What Is an eSignature?
An eSignature (electronic signature) is any digital symbol, name, or process used to indicate agreement on a document. It can be:
A typed name
Initials in a box
A drawn signature using a mouse or touchscreen
Clicking “I Agree” on a contract or form
The main purpose of an eSignature is to represent consent or acknowledgment—just like a traditional ink signature. eSignatures are legally binding in most countries, including under the U.S. ESIGN Act and the EU’s eIDAS regulation.
What Is a Digital Signature?
A digital signature is a more secure form of eSignature. It uses cryptographic algorithms and identity verification techniques to:
Confirm the signer's identity
Ensure the document has not been altered
Track when and where the document was signed
In short, digital signatures are built for enhanced security and authenticity, making them ideal for contracts, financial documents, and sensitive records.
eSignature vs. Digital Signature: Which One Do You Need?
The comparison isn’t about which option is better—but which is more appropriate for your use case.
Feature | eSignature | Digital Signature |
Legally binding? | ✅ Yes | ✅ Yes |
Security level | Basic | Advanced encryption & verification |
Identity verification | Optional | Required (e.g., multi-factor auth) |
Audit trail | Sometimes included | Always included |
Use cases | General approvals, agreements | Sensitive contracts, legal docs |
If your business requires enhanced security, traceability, and compliance, a digital signature is the ideal choice. For everyday approvals or internal processes, an eSignature may be sufficient.
How Digital and Electronic Signatures Work Together
Rather than choosing between one or the other, many organizations implement both to meet varying levels of risk and compliance.
For example:
A digital signature might verify the identity of a stakeholder before they access or edit a document.
An eSignature can then be used to confirm their approval on that same document.
Together, they offer a complete, secure document signing experience—from access control to legal compliance.
Real-World Example: How These Signatures Fit Into Your Workflow
Imagine two companies negotiating a partnership. Here's how digital and electronic signatures might come into play:
Identity Verification: A digital signature confirms only authorized users can view or edit the draft contract.
Edits & Reviews: Stakeholders propose revisions, each tracked in an audit log.
Final Approval: Once the document is finalized, both parties use an eSignature to agree to the terms.
This layered approach ensures both document integrity and legal enforceability.
Choosing the Right Signature Software for Your Business
Selecting the right digital signing solution means finding a platform that:
Integrates seamlessly with your document management system
Supports both digital and electronic signatures
Offers template creation, automated workflows, and audit trails
Scales with your business growth
A platform like Dropbox Sign (formerly HelloSign) offers robust capabilities, allowing you to predefine signature fields, use reusable templates, and integrate with popular tools like Google Workspace and Salesforce. It supports digital signature protocols while streamlining eSignature tasks, all within a single interface.
Why Shake IT Is Your Trusted Partner for eSignature Implementation
At Shake IT, we specialize in helping organizations modernize their document workflows. Whether you're:
Migrating to a cloud-based content management system
Replacing legacy signing processes
Implementing enterprise-wide compliance policies
Our experts ensure your eSignature and digital signature solutions are set up to meet your security, usability, and scalability needs—without disrupting daily operations.
We evaluate your business requirements and configure a solution that integrates seamlessly with your tech stack, so your team can stay focused while reducing administrative friction.
The Bottom Line: It’s Not eSignature vs Digital Signature — It’s eSignature and Digital Signature
While often compared, eSignatures and digital signatures serve complementary roles. One offers quick, legally binding approvals; the other ensures the identity of signers and protects your documents from tampering.
Together, they form the backbone of modern, secure, and efficient document workflows.
If you’re looking to enhance your business operations, secure sensitive information, and stay compliant with industry standards, now’s the time to upgrade your signature solution.
Let’s Transform Your Document Workflow
Let Shake IT help you implement a secure, scalable signature system tailored to your business. Contact us today to discover how eSignatures and digital signatures can elevate your operations—and save time, money, and stress in the process.
