Electronic Signature vs Digital Signature — What Is the Difference?

The Common Confusion — Electronic and Digital Signatures

Many people use the terms "electronic signature" and "digital signature" interchangeably, as if they mean the same thing. But the truth is there are significant differences between them — both technically and legally. Understanding these differences will help you choose the right type of signature for your needs.

What Is an Electronic Signature?

An electronic signature is a broad term that encompasses any electronic method expressing agreement to a document. This can be:

• Typing a name at the bottom of an email
• Clicking an "I agree" button on a website
• Drawing a signature on a touchscreen
• Scanning a handwritten signature and attaching it to a document
• Signing via a platform like SignFlow

All of these are electronic signatures. What they have in common is that they are done electronically and express the intent to sign. Under the Israeli Electronic Signature Law, all of them can have legal validity, though at different levels.

What Is a Digital Signature?

A digital signature is a specific type of electronic signature based on encryption technology — typically PKI (Public Key Infrastructure). It uses a digital certificate to verify the signer's identity and ensure the document's integrity.

The relationship between the two is like the relationship between "vehicle" and "sports car": every digital signature is an electronic signature, but not every electronic signature is digital. A digital signature is simply a more advanced type of electronic signature.

Comparison Table

Technical Differences

The main technical difference is that a digital signature is based on a digital certificate issued by a Certificate Authority. The certificate links the signer's public key to their real identity, enabling verification without a third party.

A secure electronic signature (like SignFlow's) is based on other security mechanisms: identity verification via email or SMS, a detailed audit trail, document encryption, and detection of any changes made after signing. In practice, both methods provide a sufficiently high level of security for most use cases.

Legal Differences

Legally, both types of signatures are recognized in Israel under the Israeli Electronic Signature Law. The main difference is in the burden of proof:

• Secure electronic signature: Legally valid, but in the event of a dispute, the party claiming the signature is valid must prove it.
• Certified digital signature: Benefits from a presumption of validity — the party wanting to contest it must prove it is invalid.

In practice, with a comprehensive audit trail like SignFlow's (which includes timestamps, IP addresses, and documentation of every action), a secure electronic signature provides very strong evidence that is difficult to challenge.

When to Use Each One?

A secure electronic signature is suitable for:

• Service contracts and business agreements
• HR documents (employment contracts, NDAs)
• Quotes and purchase orders
• Lease agreements and real estate documents
• Documents from law firms
• Accountant documents

A certificate-based digital signature is suitable for:

• Official government documents
• Large-scale financial transactions
• Documents requiring maximum security
• Regulatory submissions

The SignFlow Solution

SignFlow provides secure electronic signatures at the highest level, suitable for the vast majority of business use cases in Israel. The platform includes:

• Advanced identity verification (email, SMS, one-time code)
• Full and detailed audit trail
• Advanced encryption and tamper prevention
• Full Hebrew and RTL interface via features page
• Local Israeli support

For more details, visit our pricing page or contact our team.

Frequently Asked Questions