How to Use Digital Signature in Your Workflow?
Digital transformation is complete only when the entire organization goes paperless! Digital signatures are mandatory for going paperless. Digital signing lets you sign documents online. Digital signatures are not only convenient and easy but are time-saving for your business. This blog introduces you to digital signature solutions, how they work, and the top digital signature software for 2023.
What is Digital Signature?
It has been over a week since you submitted the requisition for expense reimbursement for a recent business trip. All the required documents are in place, the requisition form has all the required details, and you have routed the requisition to the designated approver – still, your requisition isn’t approved. The relatable situation in most approval-based business processes. In some cases, the designated authority is not available (physically) for approval, in other cases, transferring the signature to the digital format might be delayed. In either case, using digital signing software solves the problem. A digital signature solution lets you sign documents online through encrypted digital signatures.
A digital signature tool uses a digital signature and does not require any paper, printing, faxing, or scanning of documents. A digital signature platform makes digital transformation seamless by replacing paper-based processes typically used in sales, procurement, contract management, or accounting processes.
Digital signatures on documents use trusted signatures that make it possible to identify the author(s) or approver(s) of the document. Digital signing software also maintains the version of the signature and document so that it can be identified whether it has changed since the last digital signature.
Digital signature software provides signatures that are digital representations of the individual’s agreement that it is deemed as the equivalent of a “wet” signature. Digital signatures include a set of methods that can be applied to a digital document to capture the intent to sign and give consent to the contents of the document. Digital signs software achieves this by gathering metadata related to all signing events digitally.
Digital or PDF signature software creates an audit trail that is cryptographically sealed to ensure document authenticity, integrity, and nonrepudiation of the digitally signed document. The audit trail thus created may also contain supporting evidence of the individuals signing the document. Details of individuals include- names, addresses, email addresses, identity proofs, and other authentication documents. The proof required may vary depending on the digital signature solution chosen.
The digital signature is a type of electronic signature that requires each signatory to sign the document with a digital certificate explicitly issued to them.
The digital signature may be considered a coded message that securely associates a signatory with a document in a recorded transaction. Digital signatures use a standard format called public key infrastructure (PKI) to provide the highest security levels and universal acceptance. A digital certificate is required for identity verification for a PKI.
Business processes come in all shapes and sizes. Purchase orders, new hire onboarding, student transcript requests, and others- all of these processes require some form of signed approval. Everyone can benefit from replacing paper-based workflows with secure digital signatures. From human resources to finance departments to legal teams – all of these departments can benefit from digital signatures.
Your digital identity provides strong evidence that you are who you claim to be while signing a document. Each digital ID is backed by a digital certificate that is issued by a trusted third party, after thoroughly verifying your identity. When a digital signature is used to authenticate your identity, the signing process provides a higher level of assurance that you agreed to.
What is The Difference between a Digital Signature and an Electronic Signature?
The terms digital signatures and electronic signatures (e-signature), although used interchangeably, have different meanings. A digital signature is a specific type of e-signature that requires a rigorous level of identity verification and assurance via digital certificates. An electronic signature on the other hand is an efficient and legal way of getting digital documents signed. They can replace a wet signature in many processes.
This category of signatures includes digital signatures that are specific to the technical implementation of e-signatures. Both digital and e-signature solutions allow you to sign documents and authenticate the signer. The main differences between these 2 types of signatures lie in purpose, technical implementation, geographical use, and legal acceptance.
| Digital Signature | Electronic Signature |
| This type of signature relies on public key infrastructure (PKI) for authenticating the signature | This type of signature is simply a valid electronic version of the wet signature. |
| They carry the signer’s information along with the digital sign | They do not contain any authentication attached |
| A digital sign secures a document | An e-sign verifies the document |
| Digital signatures are verified by licensed certifying authorities | These signatures are not validated by licensed certifying authorities |
| These signatures come along with encryption standards | They do not come with encryption standards |
| A digital signature comes with several security features and is less susceptible to tampering. | These signatures are less secure and more susceptible to tampering |
| This type of signature is a digital fingerprint that contains a person’s identification | This signature is a file, image, or symbol that is attached to the document to give consent for a signature |
| A digital sign is authenticated using a digital signature certificate | This type is authenticated with the help of a phone number, SMS, etc |
| This type of signature is created using cryptic algorithms | They offer lower security and no cryptic algorithms are used to create these signatures |
Advantages of Using Digital Signature Software
Digital signatures function similarly to digital fingerprints. The digital signature takes the form of a coded message and securely links a signatory with a document in a recorded transaction. These types of signatures can be used for virtually any signature needed today. The main advantage of using digital signatures is security. The security features embedded in digital signatures ensure that a document is not altered or tampered with and that signatures are legitimate.
The main benefits of using digital signatures include:
Timestamping – Timestamp is useful when the timing is critical in processes such as lottery ticket issuance, stock trades, and legal proceedings. A digital signature provides the date and time, which is useful in these processes.
Legal compliance and global acceptance – Digital signatures are characterized by the public key infrastructure (PKI) standard that ensures that vendor-generated keys are made and stored easily. PKI is a globally accepted standard that is being increasingly adopted by companies across the globe.
Time and cost savings – Digital signatures eliminate the need for cumbersome paperwork. Organizations can go paperless and save money previously spent on physical resources. Personnel and office space used for managing and storing paper documents can be saved by using digital signatures. A considerable amount of time is saved by simplifying the time-consuming process of physical document signing, storage, and exchange, which enables businesses to quickly access and sign documents.
Reduces carbon footprint – When the usage of paper documents is reduced, the physical waste generated by paper documents is reduced proportionally. The negative environmental impact of transporting paper documents is also reduced. Digital signatures bring down the carbon footprint on the environment by minimizing the use of paper documents.
Auditability – The use of digital signatures creates an audit trail that makes internal record-keeping easy for businesses. An updated and accurate audit trail ensures that everything is recorded and stored digitally, and the opportunities to misplace or tamper with records are eliminated.
Trusted and compliant – Digital signatures are backed by digital certificates that are issued by third-party providers that help you comply with global regulations and standards.
Unique identity – Your digital signature is your digital identity. This identity can be used to validate your credentials and authorize your signature when you sign digitally.
Protected documents – Digital signatures and signed PDF electronic documents are cryptographically bound and secured with a tamper-proof seal.
Businesses that make use of digital signatures for their transactions are assured of the highest level of security. The possibility of manipulation or misuse of data is not present in a digital signature solution.
How does digital signature work?
Before we get into how a digital signature works, let us focus on creating a digital signature. Signing software is used to provide a one-way hash of the digital data to be signed. What is a hash? A hash is a fixed-length string of letters and numbers generated by an algorithm. Encryption of the hash is then done with the help of the private key of the digital creator. A digital signature is created by the hashing algorithm by combining the encrypted hash and other relevant information.
The reason for encrypting the hash instead of the entire message or document is the hash function that converts an arbitrary input into a fixed length value that is much shorter. Hashing is much faster than signing. Since the value of the hash is based on the hashed data, any change in any character results in a different value. The uniqueness of the hash enables others to use the signer’s public key to decrypt the hash to validate the integrity of data. If the decrypted hash matches a second computed hash of the same data, it proves that the date has not changed since it was last signed. When the two hashes don’t match, it means that the data has tampered or the signature was created with a private key that does not correspond to the public key presented by the signer.
How do digital signatures work?
Digital signatures are similar to handwritten signatures, in terms of the uniqueness associated with each signer. Digital signature solution providers follow a specific protocol called PKI or public key infrastructure. PKI requires the provider to use a mathematical algorithm to generate 2 long numbers called keys. One of these keys is public, while the other is private.
When a signer signs a document digitally, the signature is created using the private key, which is always kept secure by the signer. The mathematical algorithm called hash acts like a cipher to create data matching the signed document. The resulting data is encrypted as a digital signature. The signature is also marked with the time that the document was signed, which adds one more validation layer for the document. If the document changes after signing, then the digital signature is invalidated.
In order to protect the integrity of the signature, PKI requires that the keys be created, conducted, and saved in a secure manner. A reliable Certificate Authority (CA) is required to protect the integrity of the signature. Digital signatures work using the public-key cryptography method that uses a key pair system (private and public keys). Public key cryptography ensures the security, accuracy, and authenticity of the document. Encryption is the process of encoding the data to be sent to the receiver in a form that only the receiver can decode. Authentication is the process of validating whether information from the sender is genuine and has not been altered in transit.
End-to-end workflow automation
Build fully-customizable, no code process workflows in a jiffy.
Security Features included in Digital Signatures
Digital signatures are highly secure, as they are backed by a digital certificate that provides proof of your identity. Digital signatures are recognized as being more secure than e-signatures as they are cryptographically more bound to the signed document and can be verified. There are several security features and methods used in digital signatures, some of which are listed below:
Personal Identification Numbers – The most common security feature provided in digital signatures is personal identification numbers (PIN), passcodes, and passwords. They are used to authenticate and verify a signer’s identity and approve their signature. The most commonly used methods for verification and validation are email, user name, and password.
Checksum – This type of authentication uses a long string of letters and numbers that represents the sum of the correct digits in a piece of digital data. Comparisons are made against this sum to detect errors or changes. A checksum can be considered a data fingerprint.
Asymmetric cryptography – Uses a public key algorithm that comprises private and public key encryption and authentication.
Certificate authority (CA) validation – In this method of validation, CAs issue digital signatures and act as trusted third parties that accept, authenticate, issue, and maintain digital certificates. CAs are useful in preventing the creation of fake digital certificates.
Trust service provider validation (TSP) – a TSP is a person or legal entity that carries out validation of a digital signature on the behalf of a company and provides signature validation reports.
Importance of Digital Signing Software
Agreements and transactions that were once signed on paper and delivered physically are now being replaced by digital documents and workflows as more business transactions are carried out online. Digital signature software helps detect malicious actors who intend to steal or manipulate data for their gain by bringing in the authentication and validation steps. Using digital signature solutions protects sensitive data without interfering with the effectiveness of online document workflows.
Compared to paper-based manual processes, digital document management systems are streamlined and simple. With digital signatures, signing a document becomes simple and can be done across devices. Since digital signatures are embedded in a file, they can be used anywhere it is shared and on any device. Tracking the status of all documents is more effective in digital signature software, users can easily check if a document has been signed or not, monitor the audit trail, and keep track of edit history with digital signing software.
Digital signatures make the document legally recognized. Each document in the workflow is linked with the signer, making it tamper-proof. Digital signatures are compliant with the ESIGN Act of the United States, and the US-EU Safe Harbor.
Uses of Digital Signature Software
Digital signature technology can be used to streamline processes and improve the integrity of documentation across industries. Government agencies, Healthcare, Manufacturing, and Financial Services use digital signatures in almost all their transactions.
Government Agencies – The US Government Publishing Office (GPO) is concerned with publishing digital versions of budgets, public and private laws, and congressional bills that require digital signatures. Digital signatures are used by Governments across the globe for a variety of reasons, including tax return processing, business-to-government (B2G) transaction verification, contract management, and law ratification. Government agencies are required to adhere to stringent laws and regulations, and standards while using digital signatures. Smart cards that are used by corporations and governments to identify their employees and citizens include digital signatures.
Manufacturing – Several processes in the manufacturing sector can be streamlined and accelerated with the help of digital signatures. Processes like quality assurance, product design, and manufacturing enhancements in marketing and sales, make use of digital signatures. Organizations like the International Organization for Standardization (ISO), the National Institute of Standards and Technology, and the Digital Manufacturing Certificate (DMC) mainly use digital signatures.
Healthcare – There are several uses of digital signatures in the healthcare industry, such as, strengthening data security, improving the efficiency of treatment and administrative processes, and e-prescriptions and hospital admissions. The digital signature software must be compliant with the Health Insurance Portability and Accountability Act (HIPAA) of 1996.
Financial services – Financial contract management can be effectively done with the help of digital signatures. Contract paperless banking, insurance documentation, loan processing, mortgages, etc are financial services that use digital signatures. This sector is heavily regulated by compliance policies and laws, hence, strict adherence to policies and regulations is a must for the digital signature platform. Electronic Signatures in Global and National Commerce Act, State Uniform Electronic Transactions Act (UETA), Federal Financial Institutions Examination Council (FFIEC), and the Consumer Financial Protection Bureau (CFPB) are some of the regulatory authorities in the Financial services sector.
Cryptocurrencies – Cryptocurrencies and bitcoin technology also use digital signature technology for authenticating the blockchain. Digital signs software is also used to manage transaction data associated with cryptocurrencies. Users make use of digital signatures to show ownership of currency or their participation in transactions.
Automating Document Signing
Document management workflows incorporate digital signature solutions for automating the verification and signing process. Digital signature software is used by businesses or individuals to authenticate documents with digital signatures. Digital signatures are legally enforceable entities that authenticate a document. Automated document workflows create robust audit trails for each digitally signed document. Workflow automation software like Cflow comes with an inbuilt digital signature feature that eliminates the difficulties that occur with handling paper documents and signing them physically.
Automated document signing enables users to create forms, workflows, and custom logic to match specific business requirements. A no-code workflow automation solution like Cflow provides the drag-and-drop feature for creating visual forms and digital signature fields. Purchase orders, timesheets, vacation requests, expense claims, and travel authorization forms can be digitally signed using the digital signature tool.
Using digital signing software eliminates duplicate signatures. A digital signature platform enables mobile-friendly digital document signing. Automating document signing using Cflow provides the following features –
- Visual drag-and-drop form builder for easy and quick creation of forms and workflows
- Elimination of duplicate signatures in document management
- Mobile interface for signing documents
- Secure and legally binding digital signing software
- Integrations and APIs for seamless connection with other business systems
- Encryption for maximum security
- Flexible and scalable software
Top 5 Digital Signing Software for 2023
Digital signature software includes solutions for secure signature capture via cryptographic operations and applications that allow users to electronically attach an image of a signature for the document. The best signature design solutions can automate and simplify the signature process. We have put together a list of the best digital signature software that you can choose to improve the customer experience and document management process. The factors to consider while choosing the best digital signature service are – ease-of-use, platforms supported, document types supported, security, and pricing of the software.
1. Cflow – Best Document Management Workflow Automation software
Leading workflow automation software that provides in-built e-signing features. Cflow is a no-code workflow automation solution that provides insane levels of customization for businesses of all sizes and types.
2. DocuSign eSignature – digital signature solution for contract management best
DocuSign is among the first major providers of online signature solutions. The DocuSign Agreement cloud helps you automate and improve how you manage the signature and contract process.
3. PandaDoc – best overall digital signature software
This software wins hands down for the best overall signing platform by providing a wide range of features. Upgraded versions of templates are available for users to choose from. Strong security and robust features provided by this software helps meet most signature-related requirements.
4. Adobe Acrobat Pro – best digital signing software for small businesses
This software provides several features for small businesses. You can go beyond signatures with the full PDF editing features provided by this software.
5. eSignatures.io – best value digital signing software
This is a lightweight signature tool for fast signatures, especially for sent contracts. Custom branding and template features enable high levels of customization as per your brand requirements
Conclusion
Digital signatures are a secure and fast way to verify and authenticate business documents. Digital signing software simplifies and accelerates the signing process. Choosing a comprehensive document workflow management tool that includes a digital signing feature is most beneficial for a business. Cflow provides several automation features including digital signing. To explore Cflow, all you need to do is sign up for the free trial.
What should you do next?
Thanks for reading till the end. Here are 3 ways we can help you automate your business:
Do better workflow automation with Cflow
Create workflows with multiple steps, parallel reviewals. auto approvals, public forms, etc. to save time and cost.
Talk to a workflow expert
Get a 30-min. free consultation with our Workflow expert to optimize your daily tasks.
Get smarter with our workflow resources
Explore our workflow automation blogs, ebooks, and other resources to master workflow automation.
What would you like to do next?
Automate your workflows with our Cflow experts.
