What is the difference between Digital signatures & Aadhaar based e-Sign?

  • June 8, 2020
  • Reading Time: 3 minutes
Reading Time: 3 minutes

Overview Of Digital Signature

A digital signature assures the legality of an e-document or a communication that is done online and uses encryption methods to give you the proof of the original documentation. According to the law in India, the PKI based digital signatures and Aadhaar based e-Signatures are officially accepted to sign documents online.

Difference Between Digital Signatures & Aadhaar Based E-signatures

Both digital & Aadhar based e-signatures can be used to sign documents. But how and where they are more valid let’s take a closer look

Digital Signatures

Digital signatures are created on cryptographic technology. With this, you can easily generate 2 keys with the help of an algorithm. These keys are called private & public keys. To create these digital signatures, the signing software generates a hash of the electronic data that needs a signature on it. The hash is later encrypted with a private key.

Basically, digital signatures are done using a Digital Signature Certificate (DSC) issued to the signer by Certifying Agencies (CA’s) that are authorized by the Government. The DSC holds information like a set of unique keys – a private key and public key. The signer must use a DSC that is stored on a USB e-token in order to sign. While signing the signer needs to insert the USB e-token containing DSC to the laptop/ PC where the signing will take place and sign the required documents by entering the DSC password. Digital signing done using this PKI technology has been provided legal status in India as per the Indian IT Act 2000.

Aadhar Based E-signatures

India took a great initiative by implementing the Aadhaar program that will assign Indian citizens to a 12-digit unique identification (UID) number. Initially, it was implemented to bring transparency in the subsidy target of the Government of India, but now Aadhaar has opened many new opportunities other than the government-related tasks.

Recently the Government of India has initiated the Aadhaar-based eSign technology allowing Indian citizens to sign documents without the need of procuring a DSC. Holding a valid Aadhaar card along with a registered mobile number an Indian citizen can seamlessly eSign documents anytime, anywhere.

Aadhar based e-signatures saves costs and time that is put in signing a document and is legally valid as a handwritten signature or a digital signature using DSC. While e-signing the documents with Aadhar card, the signer can view the documents, then enter the Aadhaar number, then submit the OTP received on the registered mobile number and completing the signing process.

Which Type Of Signature Is Useful For Different Types Of Scenarios?

A digital signature is perfect for endorsers who need to sign reports regularly or need to sign documents in bulk or need to sign and trade documents on global level. Eg: In a situation where organization cosigners are signing reports like invoices, form16, HR letters, NDAs, PO’s, etc. on a daily basis, then using digital signatures is perfect.

Aadhar based e-sign is perfect for procedures where signers require to sign documents immediately and do not wish to invest time and money in procuring DSC. Eg: if you need to sign documents once in a while like application forms, account opening forms, signing offer letter for acceptance, at that time Aadhar based e-signatures is perfect. It is valid and legally accepted.

Closing Note – Why Opt For Cygnature?

Subsequently, we can say that Aadhar based e-signatures are the way forward for a secured and time-efficient method to sign documents instantly.

Based on the foundation laid by the Unique Identification Authority of India (UIDAI), it confirms the signer safely and gives a smooth interface to carefully e-sign documents.

Leveraging the benefits of Aadhaar, Cygnature brings a one-stop solution for securely signing all your documents. Cygnature is an award-winning blockchain-based digital signing solution that is safe, secure, and legally valid. To understand how Cygnature can help you adopt e-signatures you can get in touch with our team on hello@cynature.io

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