Know The Features And Working Mechanism Of E-Signatures

Know The Features And Working Mechanism Of E-Signatures

All legal documents, contracts, financial statements, and other official documents should carry the signature of an authorized person to substantiate their validity. When several pages of these documents need to be signed, it is a time-consuming task for the signer. Here only an e-signature helps to signers.

What is an E-signature?

It is an electronic form of signing a document. These signatures help signers not only to sign several pages quickly but also comfortably. It makes them the industry benchmark for signing important documents and creating evidence. An E-signature helps validate the identity of a signer. It is strong evidence that only the authenticate signer has signed the document in question but no one else.  

How does an E-signature Work?

When a signer signs a legal document electronically, the personal key of the signer creates the signature. These signers will usually keep their private keys securely and confidently to avoid misusing them. The arithmetical algorithm functions as a cipher, creating data that matches the signed document. It is known as a hash in the e-signature terminology, which encrypts that data.

Any signer using an e-signature will usually generate two private keys, a private key and a public key. When a signer signs a document digitally, the document will have a cryptographic hash. It is then encrypted using the private key of the sender. It is stored in an HSM or Hardware Security Module box safely. It is nothing but a physical computing machine, safeguarding and managing digital keys, performing both encryption and decryption hobs. It is then added to the document and sent to the receivers, together with the sender’s public key.

Once the recipients receive the encrypted hash and public key, the key is used to decrypt the encrypted hash of the sender. Both encrypted and decrypted hashes are compared to ensure authenticity. If they match, the document is considered valid.

What are the Features of an E-signature?

Although e-signatures carry several design features, they vary in their use according to the type of users. Many modern-day users, small enterprises, and large enterprises use these signatures. 

Individual users will use e-signature for signing service documents, such as:

  • Service invoices
  • Filing returns
  • Doing statutory formalities
  • Registering them to a scheme

Small enterprises use e-signatures for their day-to-day online transactions and exchanges.

Most large enterprises use an e-signature for signing contracts, approving consignments, paying taxes, entering deals, etc.

Some of the safety features of an e-signature include:

  • Signer verification
  • Non-repudiation
  • Data integrity

These features make e-signatures extremely popular among those who want to sign important documents.


E-signatures offer the required comfort and convenience to signers. They protect the signed documents from tampering as well. To know more about using e-signatures fruitfully, contact Data Direct.