The development of electronic signatures has opened up a lot of possibilities for individuals and businesses. It has significantly eased how transactions are carried out. Individuals and businesses can sign contracts and other documentation seamlessly without being physically in the same geographical location. Also, electronic signatures have increased the ability of businesses to effectively satisfy their clients through lower costs, better products, and timely transactions.
Despite the incredible benefits of electronic signatures, there are still disadvantages to using electronic signatures. The pros and cons of electronic signatures are highlighted below.
Advantages of Electronic Signatures
Electronic signatures have several advantages, which are stated below.
The greatest advantage of an electronic signature is its enhanced security features. The level of security, which is in the form of encryption limits the likelihood of forgery and illicit addition or subtraction of information within a document that is embedded with an electronic signature. However, its level of security depends on the type of electronic signature, the encryption used, and the service provider that is offering the service.
Hastens Business Transactions
In many cases, a business transaction can be slow due to the amount of paperwork involved. Additionally, several parties may likely need to see or sign a document before it becomes a contract or a business decision. With the help of an electronic signature, business transactions are hastened, which may lead to more profit for a business. Likewise, it eliminates the need for each person involved to physically sign a document.
Generally speaking, electronic signatures reduces the cost of printing supplies that are required. Additionally, the minimum number of printing equipment is needed as most documents are viewed electronically.
Ensure Form is Filled Properly
In many instances, people forget to provide all the required information on a physical document or contract. However, an electronic document that is signed with an electronic signature will most likely have all the required information filled in before a document is signed and sent. Most electronic signature providers develop applications that ensure a user fills each required information.
Disadvantages of Electronic Signatures
Electronic signatures also have several disadvantages, which are stated below.
In most cases, specific software applications are required for both sender and receiver of a document that is embedded with an electronic signature. Also, all parties involved may need to purchase a specific type of software to be able to sign and receive signed electronic documents. Therefore, parties that do not own such an application will have to purchase it before they can make use of a secured electronic signature.
Security is not Guaranteed
Although electronic signatures are generally secure, not all types of such signatures can be considered safe. Simple electronic signatures offer users the least amount of security for documents. However, with standard and qualified electronic signatures, a user gets better security. Nonetheless, it is still possible for nefarious individuals to bridge such security. Therefore, a continuous update is required to ensure security.
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