4 popular types of digital signatures today and how to distinguish them in detail

Digital signatures are a major turning point for every business on the path to Digital Transformation in the current 4.0 era. However, not all businesses clearly understand digital signatures, can differentiate between the types of digital signatures, and know which type their business needs to use. To shorten the research time for managers, 1Office will share in detail the differences between the 4 common types of digital signatures in the article below.

Overview of Digital Signatures

What is a digital signature?

The Law on Electronic Transactions, Decree 130/2018/ND-CP defines:

“A digital signature is a form of electronic signature created by transforming a data message using an asymmetric cryptography system, whereby a person who has the original data message and the signer’s public key can accurately determine:

– The aforementioned transformation was created using the correct private key corresponding to the public key in the same key pair;

– The content integrity of the data message since the aforementioned transformation was performed.”

Simply put, a digital signature is a type of signature used on digital devices, texts, and documents through public key encryption technology. A digital signature has the same legal validity as a regular signature, offers high security, and is recognized by the state in documents, records, etc.

3 common groups of digital signatures

 

	Definition	Applicable Subjects	Purpose of Use
Corporate Digital Signature	A signature on a digital platform, with the same legal validity as the seal of an organization or business.	– The legal representative of the business as prescribed by law. – Or the company representative according to the business registration.	Issuing e-invoices, submitting online tax reports, digitally signing documents, paying social insurance, signing contracts, etc.
Employee Digital Signature	Equivalent to an individual’s handwritten signature. The personal digital signature is used to authenticate the signer’s identity on business documents in an electronic environment.	Employees in specific departments of the business. Mid-level and senior managers in the business.	Digitally signing documents within the scope of their authority in the business or organization.
Personal Digital Signature	A signature used to authenticate the signer’s identity in electronic transactions.	Individuals	Signing on digital documents and files to confirm their content.

Read more: What is a digital signature? Why businesses should use digital signatures

What documents do businesses need to register for a digital signature?

When registering for a digital signature, businesses need to prepare the following documents and records:

• A notarized copy of the business registration certificate or a notarized copy of the operating license;
• A notarized copy of the business’s tax registration certificate;
• A notarized copy of the legal representative’s national ID card (or passport).

After gathering all the above documents, businesses can submit them to an authorized digital signature service provider. Alternatively, for a simpler process, they can contact digital signature service providers for assistance. The fee will depend on the service package the business chooses.

The information above provides a basic overview for businesses to understand digital signatures, their identification, and the registration process. To experience our Digital Signature Service or to gain in-depth knowledge from experts in the fields of Digital Signatures and E-contracts, please click the button below for the fastest support.

A detailed comparison of the differences between the 4 most common types of digital signatures today

USB Token

• Features:

A USB Token is a type of digital signature that uses a hardware device (USB) to generate private key pairs, store the signer’s data, and create the signature. Users must connect the USB token to a computer to perform the signing operation.

Each USB has a corresponding serial number of 8-10 characters. Pressing the Token button displays a random 6-digit code that is valid for a specific period. Each code applies to one customer, one transaction, and a specific time. Because it is encrypted for each signature, the highest level of security is always guaranteed.

• Advantages

The process of generating the signing code is very complex, using various algorithms, and there have been no successful cases of it being cracked. Notably, each code is for a single transaction, preventing code forgery or data security breaches. In addition to keeping the private key secure, a USB Token also has large storage capacity and high-speed processing for data up to 32 bits.

• Limitations

Due to its complex operation, the USB Token can also cause many hassles for businesses. Because it must be connected to a computer to operate, it is very inconvenient when you are away from your computer. In particular, if there is a problem with the computer, the USB Token cannot be used to sign. And at any given time, it can only be used by one person, so this type of signature does not yet meet the needs of multiple users.

• Which businesses is it suitable for?

USB Tokens are suitable for many different types of businesses, especially those with a moderate volume of document data to process. This type of digital signature allows businesses to handle documents related to tax declarations, insurance, e-invoices, and customs declarations for import-export companies.

HSM

• Features

An HSM digital signature is a type that uses HSM (Hardware Security Module) technology to store and protect key pairs and digital certificates for strong authentication applications and cryptographic processing. This type of signature helps increase signing speed and can operate both online and offline. An HSM is produced in the form of a PKI card plugged into a computer or as a standalone network-connected device.

HSM digital signatures have the same legal validity as handwritten signatures and can be used for automated signing. Notably, they have the ability to delegate signing authority to multiple different entities and can process tens of thousands of signatures simultaneously.

• Advantages

HSM meets the superior requirements of digital signing with high signing speed, secure authentication, and convenience for users. This type of signature does not need to be carried physically; it can be integrated as a card in a computer or exist in a digital environment.

HSM digital signatures allow for centralized signing and can delegate authority for multiple users to share a single digital certificate. With a signing speed of up to 1,500 invoices per second, HSM ensures the speed and the principle of sequential and continuous invoice numbering for businesses with many documents to process.

• Limitations

No digital signature is perfect. The disadvantage of HSM is its high cost compared to other types of digital signatures, so not every business can afford it. Due to the specific nature of HSM technology, this type of signature is typically used by large enterprises that require a large-scale management system and good infrastructure to support it. This is also a barrier for small and medium-sized enterprises.

• Which businesses is it suitable for?

With the characteristics above, HSM is often suitable for businesses with strict requirements for signing numerous documents quickly and automatically. HSM is commonly used for signing confirmations in online payment services, banking, e-commerce, customs, etc.

See more: The golden time for digital transformation for every business

SmartCard

• Characteristics

Unlike USB Tokens or HSMs, a SmartCard digital signature is a type of digital signature integrated into a phone’s SIM card, researched and developed by network carriers.

        Users can sign digitally directly on their mobile devices without depending on other hardware or an internet connection.

• Advantages

The cost of a SmartCard digital signature is quite low compared to other types, making it accessible for any business. The advantage of SIM integration allows users to flexibly and quickly sign documents directly on their phones.

• Limitations

The disadvantage of a SmartCard is the inconvenience of having to use a SIM card from the issuing network carrier and being dependent on the provided SIM type. If the user’s SIM is outside the carrier’s coverage area, digital signing cannot be performed.

• Which businesses is it suitable for?

This type of digital signature is suitable for domestic, small-scale businesses with moderate budgets. It is especially suitable for businesses with simple digital signature requirements, handling a small number of simple procedures and documents.

Remote Signature

• Characteristics

A remote digital signature (Remote signature) is a type of signature that uses the provider’s cloud technology to sign. This type of digital signature does not require hardware devices and can be used to sign anytime, anywhere, on various devices.

The user entrusts the management and authentication of the private key to the signing platform provider. Each provider will have different key security methods to confirm the signer’s identity. Remote signing technology applies the European eIDAS standard for “Electronic identification, authentication and trust services,” adding two-factor authentication and device identification on phones, thus ensuring the highest level of reputable security.

• Advantages

This type of signature overcomes most of the disadvantages of USB Tokens and SmartCards. It allows signing anytime, anywhere, without depending on hardware devices. It notably saves on hardware procurement costs and reduces travel expenses.

Signing directly on computers, phones, tablets, etc., makes digital signing more flexible and convenient than ever. It cuts down on travel and delivery costs. It reduces hardware installation costs. Whether near or far, businesses can sign digitally with ease.

• Limitations

Remote signatures still face challenges related to data security technology. Researching and developing this type requires providers to have a robust technology infrastructure and adhere to security standards.

• Which businesses is it suitable for?

Remote digital signatures are suitable for many businesses in various fields. In the era of digital transformation, businesses need to adapt to handle manual signing processes. By signing on a cloud platform with support from a service provider, businesses can start operating simply by registering.

Signing electronic employment contracts, commercial agreements, or transaction invoices, tax documents, etc., can all be done in a short amount of time with a remote digital signature.

Comprehensive comparison table of the 4 types of digital signatures

 

	USB Token	HSM	SmartCard	Remote Digital Signature
Hardware device required	Yes	Yes	Yes	No
Online signing	No	Yes	No	Yes
Security Key	Token Held by the user	Uses HSM technology, the user authorizes the provider for security and authentication	Held by the user (via OTP to SIM)	eIDAS standard The user authorizes the provider for security and authentication
Application	Small and medium-sized enterprises Taxes, insurance, e-invoices…	Large enterprises, extensive infrastructure Banking, e-commerce, customs…	Domestic enterprises, simple operations, internal applications	All enterprises
Cost	Token + Subscription	Infrastructure + Subscription	Low, Subscription fee	Subscription

Thus, from the information above, businesses can grasp detailed information about the common types of digital signatures on the market. To make the right choice about the type of digital signature your business needs, as well as to receive advice on reputable digital signature service providers, click to register for a trial below:

Where should you register for a digital signature, and from which provider?

The market currently offers many types of personal and business digital signatures, but the most prominent is the 1CA Digital Signature service provider from the 1Office All-in-one Corporate Management Platform. The outstanding advantage of 1CA is the ability to sign on all processes and all documents for multiple documents at the same time. In particular, with cloud storage technology, data is kept secure, safe, and easy to search. The cost for the 1CA solution varies according to the needs of each business of different scales.

Register for the 1CA Application – Smart digital signature solution – “Paperless” operation

• Digital signing on all processes

With its all-in-one corporate management ecosystem, 1Office allows for the integration of digital signatures into all internal business processes, meeting the need for smooth internal and external operations. Processes are digitized, and with just a step change, contracts and document templates can be created for signing directly on the software without needing to sign in multiple places.

Developed in parallel with the need for commercial signing, labor contracts, etc., digital signing on processes also solves both internal operational tasks and commercial signing. This helps promote the most comprehensive digital transformation for businesses.

• Centralized data storage and management

Data after being digitally signed is stored on the cloud platform. Documents, texts, records, etc., will no longer be at risk of being lost, stolen, or having information leaked. The security technology on the cloud platform is extremely tight, with user permissions assigned to avoid risks of copying and theft.

Managing data on a single platform makes control easy and extracting documents on demand extremely simple. Searching for and classifying records is also easier than ever.

• Save 90% on operating costs

Businesses spend hundreds of millions per year on costs for paper, ink, printers, and delivery for each contract. Now, 1CA will solve all of that. Digital signing eliminates the need for travel and delivery, saving a large budget on printing and transportation.

In particular, digital signatures can be approved remotely and signed remotely on multiple devices, so there is no need to wait and waste time. Leaders can also sign multiple documents at once, even when they are far away, which helps to speed up business operations and visibly improve efficiency.

• Allows flexible signing on any device, for any document

The 1CA digital signature allows businesses to sign flexibly on many different devices, without depending on any hardware tools. In particular, the 1CA digital signature solution can also sign in many different forms: from digital signatures, image signatures to scanned signatures… and many other forms. This is an advancement compared to traditional digital signatures, supporting managers in handling online signing operations quickly and conveniently.

See more: Details on the 1CA Digital Signature Service price list

In general, a digital signature is an optimal solution for many businesses to move towards business digitization and paperless operations. Choose the appropriate type of digital signature based on the purpose, needs, and budget of your business. Contact 0834 838888 immediately or click the “Register for consultation” button below to get the best support for the digital signature solution that suits your business.

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