CocoSign Blog

Digital Signature vs. Electronic Signature: What’s the Difference?

Abbey Wang -

Digital signatures and electronic signatures—what’s the difference?

Despite seeming similar, they’re not the same thing, even though most people use them interchangeably.

However, they are distinct and differ in how they appear, are created, and the level of trust, security, and legal weight they carry.

Let’s discuss their differences below.

What Is an Electronic Signature?

An electronic signature (or “e-signature”) is any kind of electronic indication that a person approves the contents of a document. It’s a broad, catch-all term for any kind of signature that was created electronically.

This includes, but is not limited to, things like:

  • Typing your name at the end of an email.
  • Checking an “I accept” box on a website.
  • Drawing a signature with a stylus or finger on a touchscreen.
  • Uploading a scanned or photographed image of a handwritten signature.

All these can be considered electronic signatures. Today, it’s estimated that up to 80% of all companies use some form of e-signature technology.

They don’t require some sort of special app or program to create, which means anyone can easily create an e-signature for business at any time.

The convenience, flexibility, and simplicity are their strengths, and they’re often used for all sorts of low-stakes documents, agreements, and contracts.

What Is a Digital Signature?

But what if you need a signature that carries a greater degree of legitimacy and security?

Here’s when you likely need a digital signature—a type of electronic signature that uses cryptography to ensure its authenticity.

The underlying cryptographic technology behind digital signatures is complex and highly technical. Fortunately, you definitely don’t need to completely understand the technology to use one.

Here’s a basic, easy-to-grasp version of how they work:

  • A document undergoes a cryptographic algorithm.
  • This algorithm produces a “hash”—a unique string of numbers and letters that specifically identifies that document.
  • This hash is encrypted with what is called a “private key”—another unique string of characters—creating the digital signature and embedding it within the document.
  • Other users then use a “public key” to verify the “private key” and therefore verify the legitimacy of the document as well.

The encrypted hash ensures that the document is unique and legitimate, no matter what. Beyond protecting documents with an encrypted signature, people take additional security steps to protect their data:

  • Legitimate service: Find a trusted encryption platform.
  • Document verification: Go through the verification process to validate a document before signing.
  • Secure connection: Download VPN software to encrypt your internet connection while handling sensitive information.

How Do You Create or Verify a Digital Signature?

Regular users don’t need to worry about technical details to create or verify the signature. All the technical execution is done in the back-end by programs like CocoSign.

Essentially, the digital signature of a document is the code and data embedded into it. It is not the signer’s name or electronically-written signature that visually appears on the document.

That visual “signature” is a mere representation of the digital signature, not the digital signature itself.

Instead, a PDF signed digitally might show something like the following when clicking “signature properties”:

Signed by: John Doe

Date: 2025-12-10

Reason: Approved

Certificate: Valid

In short: Every digital signature is an electronic signature—a cryptographically secured electronic signature—but not every electronic signature is a digital signature.

Electronic signatures are often found in low-stakes communications and agreements, such as everyday work emails, excuse letters for your child’s school absence, or light contracts.

It may even suffice for legal purposes in some jurisdictions as equivalent to handwritten signatures, as long as intent and consent can be demonstrated.

Digital signatures, on the other hand, are often preferred, if not required, when document security, authenticity, and tamper-proofing are non-negotiable. For example, NDAs, legally binding contracts, loan documents, or healthcare consent forms.

This is because general electronic signatures (that is to say, non-cryptographic or non-digital signatures) can be easily faked.

So, which do you use? It all depends on the nature of the document, the stakes of the communications and agreement, and the level of legal assurance required. Always consult the receiving party about their requirements.