The Electronic Signatures in Global and National Commerce Act (often referred
to as the e-signature bill) specifies that in the United States, the use
of a digital signature is as legally valid as a traditional signature written
in ink on paper. In effect since October 1, 2000, the U.S. law is expected
to save companies that use e-signatures a significant amount of money by
reducing the costs of mailing and handling hard-copy contracts and similar
documents.
The Act does not specify a single digital signature technology. Many e-signature
advocates expect that the public key infrastructure (PKI), used for authenticating
credit card transactions over the Web, will play an important role in the
development of secure e-signatures. Several third-party companies are now
exploring other methods to verify a person's legal identity, including the
use of personal smart cards, PDA encryption devices, and biometric verifications
(fingerprint, voice, or iris scans). Experts agree that until the legality
of e-signatures has been tested in the courts, the routine use of e-signatures
is likely to be several years away, primarily because businesses lack confidence
in present security and verification procedures.
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