Differences Between Paper Contracts and Electronic Contracts
eIDAS and the Use of Electronic Signatures: A Comparison of Three Levels of Assurance
SES Simple Electronic Signature
Widely used in general signing scenarios
The most basic form of electronic signature, defined as 'electronic data attached to or logically associated with other electronic data and used by the signer for signing'
Used for: daily affairs, signing internal company documents, including emails, low-risk agreements, package delivery terminals
Compared to advanced electronic signatures, the main drawback of simple electronic signatures is their lower security and authentication. This characteristic makes them more susceptible to forgery and disputes, especially in high-risk transactions or when handling sensitive information
AES Advanced Electronic Signature
Used in scenarios with higher default risk
An advanced electronic signature is one that has the following characteristics: uniquely associated with the signer and capable of identifying the signer; created in a way that allows the signer to retain control; linked to the document in a way that allows detection of any subsequent changes to the data
Used for: financial documents such as financial agreements and bank documents; legally binding documents such as employment contracts and purchase orders
It should be emphasized here that the use of qualified electronic signatures is crucial for ensuring the best security and compliance in scenarios involving strict legal requirements or high-value transactions. Qualified electronic signatures provide a higher level of authentication, legal validity, and protection, and are the preferred choice when legal and financial issues are involved
QES Qualified Electronic Signature
Required for use in specific industries such as government, finance, etc.
A qualified electronic signature is an advanced electronic signature that has the following characteristics: uses a QSCD (Qualified Signature Creation Device). QSCD must comply with strict security technical standards to ensure the highest level of credibility and authenticity in the signature creation process.
Used for: filing patent applications; signing land registry documents; signing business plans; signing legal consent letters, major sales agreements
It should be noted that different levels of electronic signatures may be suitable for different situations, but in the entire European Union, only qualified electronic signatures are explicitly recognized as having the same legal status as handwritten signatures.
The Value of Electronic Signatures in Environmental, Social, and Governance (ESG)
Electronic signatures have significant value in promoting environmental protection, social responsibility, and corporate governance, helping companies achieve sustainable development while also providing convenience and security for individuals and society.
Environmental Protection (Environmental)
Reducing Paper Usage
Electronic signatures significantly reduce reliance on paper, helping to reduce deforestation and energy consumption in the paper production process.
Energy Saving
Compared to traditional printing, mailing, faxing, or hand delivery of documents, electronic signatures can significantly reduce transportation and logistics needs, thus saving energy.
Social Responsibility (Social)
Increasing Efficiency
Electronic signatures make contract signing faster and more convenient, especially in cross-regional or multi-party situations, helping to improve work efficiency and promote the development of social productivity.
Portability
Electronic signatures support remote signing, providing convenience for people with limited mobility or those in geographically remote areas, promoting social inclusion and equality.
Corporate Governance (Governance)
Enhancing Security
Electronic signatures combine encryption technology to provide a high level of security, effectively preventing identity fraud and tampering, ensuring the security of transactions.
Increasing Transparency
Electronic signatures record detailed signing processes and timestamps, helping to increase the transparency of contract management, which is particularly important for industries with high audit and compliance requirements.
Promoting Compliance
Electronic signatures comply with the legal and regulatory requirements of many countries and regions, such as the EU's Electronic Identification and Trust Services Regulation (eIDAS) and the U.S. Electronic Signatures in Global and National Commerce Act (ESIGN), helping businesses comply with relevant laws and regulations.