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The Importance of a Digital Signature

3 reasons a Digital Signature is important for your business

All companies, especially in recent years, are digitally transforming their business processes. From larger scale technology advancement to smaller aspects that allow the business to function better. Smaller factors such as a Digital Signature are equally important to a business as they aid in a compensability to be more efficient, add security to their business and abide by legal standards.

What is a Digital Signature?

Oxford Languages defines a digital signature as “a digital code (generated and authenticated by public-key encryption) is attached to an electronically transmitted document to verify its contents and the sender's identity”. It is essentially the digital equivalent to a handwritten signature however, it is more secure as it aims to reduce tampering and impersonation in digital communications.

What are the benefits of a Digital Signature?

1. Additional Security

It may not seem like it but digital signatures are actually very secure. Many digital signature software or websites offer different forms of security, however, generally, they use encryption verification technology known as Public Key Infrastructure (PKI).

The Public Key Infrastructure works through a “public key” and a “private key”. The person who creates a digital signature has a private key that encrypts signature related data. Before encrypting the signed document, an algorithm known as the ‘MD algorithm’ encrypts the message into a “hash value”. The private key encrypts this hash value. This digitally signed message or document can then only be decrypted with the signer’s public key which the receiver will have.

The public key both decrypts and converts it into another hash value. The program or software chosen will then compare the original and latter hash value to see if they match, if they do, then the program will open the document. If the values do not match then the signed document will not open. It may seem a bit confusing but this generally happens behind the scenes when you are using the software of your choice, however, this is the main way the process can be as secure as it is.

This comprehensive system simultaneously offers a high standard process that identifies an individual by their electronic signature while also ensuring that the specific document got to the exact person and that the document remains unchanged after signing.

These systems also let the relevant parties involved with the contract immediately know if the document has been altered after it has been signed.

2. Efficiency

Electronic signatures are another measure to ensure that your businesses processes are moving as efficiently, easily and securely as possible. Very often getting signatures on documents can take quite a bit of time, especially in medium to large scale companies. Some benefits specifically in terms of time include:

- No need to sign, print and then scan documents manually.

- Gives customers and anyone in the organization the ability to sign the document from anywhere and on any device.

- The software will verify that the documents and relevant pages have been signed by the mandated person.

- Ensures a secure and fast process of contract signatures for all parties.

- Increases the ease of your company’s user or employee experience by reducing back and forth between the two parties.

3. Legality

More and more countries and companies are accepting digital signatures especially as the technology has continually become more advanced and secure. While it is still growing in the Caribbean a lot of companies since the pandemic have been turning towards it in order to speed up business contracts in the wake of COVID-19 restrictions.

While it is slowly growing in use around the Caribbean many companies and governments around the world have been using it and have set legal parameters around it. The companies that offer these services meet various standards outlined by governments to ensure authenticity and to verify the signer’s identity.

Popular websites/digital signature services such as DocuSign, Adobe Sign and Connective comply with international standards around the world.

It is important whenever using these services that businesses verify that the service meets the general international standards as well as the ones that pertain to their

specific country or region.

As more business processes become digital and more remote working continues, options such as digital signatures are another way for companies to ensure efficiency and digital security within their company.







Need to boost your companies branding and overall marketing goals? Connective Pros can help! Contact us via our website or send us an email at to get a consultancy for your business.


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