The Difference Between a Digital Certificate and an Electronic Signature

The business and increasingly private aspects of life are moving into the digital environment. To perform our work effectively, we don't need to be physically present at the workplace, and we can manage various documents in the comfort of our home.

However, this shift brings numerous challenges. When signing contracts, confirming financial transactions, or sending confidential documents, you likely encounter two terms: personal digital certificate and electronic signature . Although both are crucial in ensuring the authenticity and integrity of digital communications, each serves its purpose and includes different mechanisms.

In this post, we'll dive into digital certificates and electronic signatures, explore their differences and similarities, and see how they contribute to online security.

Digital Certificate: The Foundation of Trust Online

What is a digital certificate? At its core, a digital certificate is a type of cryptographic credential, akin to an ID card, that individuals or organizations use to prove their identity in the digital world. It's a computer record containing information about the holder, their public key, the issuer of the digital certificate (a provider of qualified trust services), and the validity period.

How a Digital Certificate Works

A digital certificate operates based on public key infrastructure (PKI), enabling secure internet communication through asymmetric encryption. The process involves the following steps:

1. Key Pair Creation: A secure website creates a pair of cryptographic keys for a new certificate holder, a public one and a private one. The digital certificate includes the public key, while the private key is securely stored and accessible only to the holder.

2. Certificate Request: The website sends a certificate signing request (CSR) to the digital certificate issuer, including the website's public key and identification information.

3. Validation: The digital certificate issuer verifies the holder's identity (who requested the certificate) and the signing request.

4. Issuance of the Certificate: Following successful validation, the issuer grants the digital certificate, signed with its private key, linking the holder's identity and public key.

5. Certificate Distribution: The digital certificate becomes publicly accessible, allowing for the verification of the holder's identity.

6. Secure Transactions: The certificate holder can securely sign electronic documents with their private key. The validity of the signature can be reliably verified using the holder's public key and identity (through the digital certificate that connects the public key with the holder).

7. Chain of Trust: Since visitors trust the digital certificate issuer included in their browsers, they subsequently trust the holder's certificate.

Uses of Digital Certificates

Digital certificates are used for various purposes, from secure identification of a website or an individual wishing to conduct secure online transactions to encrypting electronic messages that can only be decrypted and read by the intended recipients. Software developers may use digital certificates to sign code, ensuring its integrity and safety for execution.

Now that we understand what a digital certificate is and how it works, what about the electronic signature?

Electronic Signature: The Digital Alternative to a Handwritten Signature

An electronic signature (or e-signature) is a set of data in electronic form, attached to or logically associated with other electronic data, used by the signer to sign. According to the eIDAS regulation, it enables the verification of the signer's identity, serving as a digital version of a handwritten signature.

The electronic signature indicates agreement, approval, or confirmation of the content of a digital document or transaction. The e-signature provides a comfortable and efficient way to sign documents (more in the post titled How do I know an electronic signature is secure ).

Under the eIDAS regulation, there are three types of e-signatures:

• Electronic Signature (ES): The most common type is simple to use and does not require identity verification.
• Advanced Electronic Signature (AES): This signature is created based on signing data that the signer can use under their exclusive control, enabling signer identification and detecting any subsequent data changes.
• Qualified Electronic Signature (QES): An enhanced version of AES, based on a qualified digital certificate from a qualified trust service provider and a specific secure signing device, offering the same legal standing as a handwritten signature on paper.

The choice of electronic signature depends on the type of documentation and the associated business risk. Specific legislation may mandate using a qualified electronic signature for certain documents, while an advanced electronic signature suffices for regular collaboration with your previously authenticated clients.

How the Electronic Signature Works in Practice

The logic of concluding agreements in the digital world is practically the same as in traditional document signing, minus the time-consuming office activities like printing, signing, scanning, and mailing. The process includes simple steps:

1. Document Creation: Create the document in your preferred office program and save it as a PDF instead of printing it.

2. Preparing the Document for Signature: In an electronic signing environment, select the signatories, authentication type, and signature, and mark your PDF with signature fields and any interactive fields for additional information.

3. Authentication: Based on the selected type of signature and authentication method, the signer verifies their identity to access the document.

4. Signing: The signer signs the document once access is granted.

5. Finalizing the Signing Process: After all signatories have signed the document, each receives a copy via email.

Examples of Electronic Signature Usage

Electronic signatures can be used for signing documents from executive boards, insurance policies, bank loan agreements, logistic documentation, medical records, lease agreements, HR documents, orders, delivery notes, project reports, technical documentation, non-disclosure agreements, handover protocols, and more.

Digital certificates and electronic signatures play vital roles in ensuring online communications and transactions' security, integrity, and authenticity.

Digital certificates establish trust on websites and encrypt data transmitted over the internet, securing identity and connections.

Electronic signatures , from simple to qualified, provide an effective and legally compliant way to sign documents and execute digital transactions.

By combining both, you'll be well-equipped for navigating the digital landscape of security and compliance, boosting your business.