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25 March 2025

Electronic digital signature: How does it work and what is it?

What is an electronic digital signature?

An EDS is a technology that allows verifying the authenticity of electronic documents and protecting them from forgery. It serves as the digital equivalent of a handwritten signature and is used for signer identification.

EDS is based on cryptographic algorithms that ensure data integrity and protect against unauthorized modifications. The use of electronic signatures is regulated by law and is considered legally binding in many countries, including Ukraine.

What is the difference between an EDS and a handwritten signature?

The main differences between an EDS and a traditional signature are in their usage and level of security:

  • Physical vs. Digital form

    A handwritten signature is manually created on paper, while an EDS is a digital code generated using a cryptographic key.

  • Security level

    EDS is significantly harder to forge because it is protected by cryptography, making unauthorized modification impossible without the proper key.

  • Authenticity verification

    An EDS can be automatically verified using specific services, whereas a traditional signature requires expert verification.

  • Legal force

    In Ukraine, an EDS holds the same legal weight as a handwritten signature if used according to regulations.

Advantages and Disadvantages of Using an EDS

Advantages of EDS:

  • Security

    Cryptographic encryption guarantees protection against forgery.

  • Faster Document Processing

    Signing and exchanging documents takes only minutes.

  • Cost Savings

    No need to print or store paper documents.

  • Convenience

    Documents can be signed online from anywhere in the world.

  • Legal Validity

    Recognized by government agencies and businesses.

Disadvantages of EDS:

  • Requires a certificate

    A special key from a certification center is needed.

  • Risk of key loss

    If the private key is lost, the signer cannot authenticate documents.

  • Special Software Required

    Some organizations mandate specific software for EDS verification.

How to obtain an EDS?

The procedure for obtaining an electronic digital signature depends on the chosen service or institution. The most popular ways to obtain an EDS:

icon Getting an EDS via online services
  1. Choose an accredited certificate authority (CA).
  2. Fill out an online application and upload the required documents.
  3. Receive a unique electronic key and usage instructions.
icon Obtaining an EDS from a bank
  1. Select a bank that offers EDS services (e.g., PrivatBank, Oschadbank).
  2. Apply in person or online.
  3. Provide identification documents and taxpayer information.
  4. Receive the electronic key and EDS certificate.
icon EDS in financial institutions

Many financial institutions provide EDS issuance services for both legal entities and individuals. The process includes:

  1. Choosing an institution that issues electronic signatures.
  2. Filling out an application and completing identity verification.
  3. Receiving an electronic signature certificate for use in online services.

Where is EDS used?

The electronic digital signature is widely used in various fields:

  • Business & Commerce

    Signing contracts, financial reports, agreements.

  • Government Services

    Filing tax declarations, submitting applications.

  • Banking Transactions

    Opening accounts, verifying transactions.

  • Education

    Online course registration, university applications.

  • Healthcare

    Digital medical records and prescriptions.

An electronic digital signature is a crucial part of digital transformation, ensuring convenience, security, and legal validity in electronic document management.

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