Everything You Need to Know About eSigning
Electronic signatures let people and businesses sign documents online instead of printing, scanning, or mailing paperwork. They're legally binding in most countries under laws like the ESIGN Act, UETA, and eIDAS, provided requirements like signer intent and consent are met. Nitro Sign lets teams send, sign, track, and store electronic signature workflows securely from one platform, with support for encryption, audit trails, and identity verification built in.
This guide explains how electronic signatures work, how they differ from digital signatures and wet signatures, when electronic signatures are legally binding, and the security, compliance, and identity verification requirements organizations should understand. You'll also learn how Nitro Sign helps businesses send, sign, track, and manage secure electronic signature workflows.
Your Complete Guide to eSignatures: Tools, Tips & Tutorials
What Is An eSignature?
How Do eSignatures Work?
Wet vs. Electronic vs. Digital Signatures
How Do I Get Started eSigning?
Are eSignatures Legally Binding?
How Secure Are Electronic Signatures?
Why Do Businesses Choose eSignatures?
eSignature Use Cases
Explore More eSign Resources
Glossary of Electronic Signature Terms
What is an eSignature?
An electronic signature (eSignature) is a digital method of indicating agreement or approval on an electronic document. In many jurisdictions, electronic signatures have the same legal effect as handwritten, or “wet,” signatures when they meet applicable legal requirements.
Electronic signatures allow individuals and organizations to sign documents from computers, tablets, or mobile devices without printing or scanning paperwork.
Nitro Sign helps users send documents for signature, track signing progress, and maintain records of completed agreements from a single platform.
Common benefits of electronic signatures:
- Sign documents remotely
- Reduce paper-based processes
- Track signing status digitally
How do electronic signatures work?
How do electronic signatures work?
Electronic signatures work by recording a signer's approval electronically and associating that approval with a document.
Most electronic signature platforms also record information about the signing process, such as participant actions, timestamps, and document history.
How to electronically sign a document
- Upload the document
- Add signature and required fields
- Send the document to recipients
- Recipients review and sign electronically
- The completed document is stored with a record of the signing activity
What happens during signing?
During the eSigning process, electronic signature platforms commonly:- Authenticate recipients before signing
- Encrypt documents during transmission and storage
- Record signing events in an audit trail
Nitro Sign supports document preparation, electronic signing, workflow tracking, and audit trails from a single application.
What are the differences between wet, electronic, and digital signatures?
Wet Signature
Electronic Signature
Digital Signature
Getting started with electronic signatures
Organizations can begin using electronic signatures by identifying documents that require approval and selecting a platform that meets their security, compliance, and workflow requirements.
Step 1: Choose a trusted eSign provider. Evaluate electronic signature solutions based on compliance with the ESIGN Act, eIDAS, and UETA, strong security features such as encryption, SOC 2, and ISO 27001, an intuitive user interface, administrative controls, and integrations with your existing business systems.
Step 2: Prepare documents.Upload documents and add signature fields, dates, initials, and other required information.
Step 3: Send for signature. Email documents to recipients in the required signing order.
Step 4: Monitor progress. Track document status and receive notifications as recipients complete each step.
Step 5: Store completed agreements. Retain signed documents together with their associated audit records.
Yes. Electronic signatures are legally recognized in many countries when they satisfy applicable legal requirements.
In the United States, electronic signatures are generally governed by the ESIGN Act and the Uniform Electronic Transactions Act (UETA). Within the European Union, electronic signatures are governed by the eIDAS Regulation.
Requirements for legally valid electronic signatures
- Intent to sign
- Consent to conduct business electronically
- Association of the signature with the document
- A record of the signing process
Important eSigning regulations and standards
- ESIGN Act (United States)
- Uniform Electronic Transactions Act (UETA)
- eIDAS Regulation (European Union)
- GDPR for personal data processing in applicable jurisdictions
Organizations should evaluate whether additional legal or industry-specific requirements apply to their documents. Failing to meet compliance requirements can lead to rejected agreements or legal disputes. That’s why choosing an eSign solution that is fully compliant with global standards, like Nitro Sign, is critical.
How secure are electronic signatures?
Electronic signatures help protect document integrity through encryption, signer authentication, and activity records.
The level of security depends on the electronic signature solution, the authentication methods used, and the organization's compliance requirements.
Common eSigning security features
- Encryption during transmission and storage
- Signer authentication
- Audit trails
- Access controls
Common eSigning compliance standards
- ESIGN Act
- UETA
- eIDAS
- SOC 2
- ISO 27001
- HIPAA (for applicable healthcare workflows)
Visit the Nitro Trust Center
The Nitro Trust Center provides information about Nitro's security practices, privacy, certifications, compliance programs, and data protection policies.
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eSignature Use Cases Across Industries
Real Estate
Manufacturing
Finance & Accounting
Healthcare
Insurance
Government
Professional Services
Energy
Education
Nitro Sign User Guide
Browse articles, tutorials, and best practices to help your team use Nitro Sign more effectively and get the most from your electronic signature workflows.
eSignature Legality Guide
Learn how electronic signatures work and how Nitro Sign supports compliance with the ESIGN Act, UETA, eIDAS, and other electronic signature requirements.
Glossary of key electronic signature terms
eSign Term |
Definition |
|---|---|
Audit Trail |
The timestamped history attached to a signed document — who viewed it, when they signed, and what actions they took. Nitro Sign generates an audit trail automatically for every document, so it's available if a signature is ever challenged. |
Authentication |
The process of confirming a signer's identity before they can open or sign a document — commonly done through email verification, one-time passcodes, or ID checks. Higher-risk agreements, like real estate contracts, often require stronger authentication than a simple email link. |
Digital Certificate |
An electronic credential issued to a signer or organization that ties a digital signature to a verified identity. It's what allows a recipient to confirm a signed document hasn't been altered since signing. |
Digital Signature |
A type of electronic signature that uses cryptographic keys and a digital certificate to verify who signed a document and detect any changes made after signing. It's a more technical, tamper-evident subset of electronic signatures generally. |
Electronic Signature (eSignature) |
Any electronic indication that a person intends to sign a document — a typed name, a drawn signature, or a click-to-sign action. It's legally recognized in most countries when paired with proper consent and a record of the signing process. |
Encryption |
The method used to protect a document's contents while it's being sent or stored, so only authorized parties can read it. Nitro Sign encrypts documents both in transit and at rest. |
ESIGN Act (Electronic Signatures in Global and National Commerce Act) |
The U.S. federal law that gives electronic signatures the same legal standing as handwritten ones for most interstate and foreign commerce. It's one of the main reasons eSignatures hold up in U.S. courts. |
eIDAS (electronic Identification, Authentication and Trust Services) |
The European Union's regulation governing electronic identification and signatures, setting out different tiers of electronic signature (from basic to qualified) with different legal weight depending on the use case. |
Identity Verification |
Identity verification methods — like email authentication, one-time passcodes, or ID checks — confirm a signer is who they claim to be before they can open or sign a document, and are often required for higher-risk agreements like real estate or financial contracts. |
Public Key Infrastructure (PKI) |
The system of cryptographic keys and certificates that underpins digital signatures, allowing a recipient to verify both the signer's identity and that the document hasn't been tampered with since it was signed. |
| Signer |
The person completing an electronic signature on a document. A single document can have one signer or several, depending on the workflow and signing order set up. |
UETA (Uniform Electronic Transactions Act) |
A U.S. state-level law, adopted by most states, that gives electronic signatures the same legal effect as handwritten signatures for the transactions it covers. It works alongside the ESIGN Act rather than replacing it. |
Workflow |
The full signing journey for a document in Nitro Sign — from uploading and adding signature fields, to routing it to recipients in the right order, to storing the completed, audit-trailed file. |
Wet Signature |
A handwritten signature applied with ink on a physical document. Some document types still require a wet signature depending on jurisdiction, even where electronic signatures are otherwise accepted. |