Digital Signature is the output (hash) of a Cryptographic Hash Function when applied to a stream of data.
A valid Digital Signature for a message sent from Alice gives a Bob a high Level Of Assurance to trust that:
Digital Signature are commonly used for Public Key Infrastructure, financial transactions, and in other cases where it is important to detect Authenticity or integrity.[1]
Digital Signatures are based on Public Key cryptography, also known as Asymmetric Key Cryptography
Unlike Electronic Signatures, Digital Signature employ the use of mathematical algorithms to verify the signer’s identity. Electronic Signatures on the other hand, are simply used to digitally capture a signer’s intent to sign. It may be an electronic mark, symbol, sound or writing.
The major distinction between forms of signature is that digital signatures use a Public Key Infrastructure (PKI) to identify both the individual signing a document and the other party requesting the signature while an Electronic Signature does not.
Of worthy note is that both Electronic Signature and Digital Signature are legally binding. Electronic Signatures are also the most common. Digital signatures are mostly used in critical financial transactions and transactions that need an extra level of confidentiality and security.
Some signing products use both forms when signing a documents.