The essence of compliance in digital signing

The essence of compliance in digital signing

Digital signing has become a fundamental pillar of modern business operations and administration. From small SMEs to large multinationals, organisations are embracing this technology to streamline processes and boost efficiency. The adoption of electronic signatures also brings compliance requirements. What does compliance mean for digital signing and what is its added value?

The basics: What does digital signing involve?

Digital signing encompasses techniques that link a person's identity to a document or message. This safeguards the authenticity of the content and prevents the sender from later denying having sent the information, a principle known as non-repudiation. This ensures that the origin and integrity of data can be proven.

There is a difference between electronic, or digital approval and a real digital signature. For some documents, typing a name or clicking an agree button is sufficient. A digital signature, on the other hand, is a specific type of electronic signature that uses a digital certificate from a trusted service provider, such as a Certificate Authority (CA). This advanced method, based on Public Key Infrastructure (PKI), provides a higher level of assurance and legal validity.

Looking at the European eIDAS regulation, three levels of electronic signatures are defined, with the 'qualified electronic signature' (QES) offering the highest level of assurance, comparable to a traditional wet signature. Properly placing a digital signature can prevent disputes when an agreement is later contested.

Core concepts of compliance: authenticity, integrity, and non-repudiation

Compliance in digital signing rests on three essential pillars:

• Authenticity: This concerns the verification of the signatory's identity. Digital certificates issued by CAs play a crucial role here. Without robust authentication methods, contracts could be signed by unauthorised individuals, which may have legal consequences and leave businesses vulnerable to claims.
• Integrity: This guarantees that data has not been altered after signing. Cryptographic hashing algorithms create unique 'fingerprints' of documents, making any modification detectable. If the integrity of a document is not safeguarded, a competitor or dissatisfied client could claim that the terms of a contract were changed after signing, resulting in costly disputes.
• Non-repudiation: This is the assurance that a party cannot later deny the authenticity of their signature or the sending of a message. Digital signatures, audit logs, and timestamps are essential here. Without non-repudiation, a supplier could later claim that an order was not placed or was placed incorrectly, leading to delivery problems and financial losses.

These core concepts are strongly interconnected and form the basis for legal enforceability. Non-repudiation builds on both authenticity and integrity. A shortcoming in one area can undermine the entire legal validity of a signed document. The legal validity of electronic signatures is crucial for their acceptance. Laws such as the eIDAS regulation in Europe recognise these signatures as a valid method, giving them the same legal status as handwritten wet signatures.

A compliant solution

It is no longer just about the 'signature' as a static image, but about the 'signing process' as a verifiable and traceable event. With a digital solution that complies with legislation, such as the eIDAS regulation, businesses are in a much stronger position. Legal certainty in an increasingly digital world.

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