Compliance with E-Sign Act

May 2, 2023
minutes to read)

Compliance with E-Sign Act

At IDsign, we understand the importance of complying with legal requirements for electronic signatures. The E-Sign Act, which was enacted in 2000, establishes legal requirements for electronic signatures and records to ensure that they are just as legally binding as paper documents.

The E-Sign Act, or the Electronic Signatures in Global and National Commerce Act, was passed in the year 2000 to ensure that electronic signatures are legally binding and enforceable. This Act is essential for companies like IDsign, which provide an online platform for the signing of legally binding contracts.

IDsign is a blockchain-based platform that allows parties to sign contracts securely and transparently. It is important for IDsign to comply with the legal requirements of the E-Sign Act to ensure that its contracts are legally binding and enforceable in a court of law.

One of the ways in which IDsign complies with the E-Sign Act is through its use of a blockchain ledger. Blockchain technology is an immutable, decentralized ledger that ensures the integrity and transparency of all transactions. By using a blockchain ledger, IDsign can provide proof of the signing of a contract that is tamper-proof and can be verified by all parties involved.

To ensure that we comply with the requirements of the E-Sign Act, we have implemented several measures:

1- Consent to Use Electronic Signatures: We require our users to provide explicit consent to use electronic signatures before they can sign documents on our platform. This consent ensures that users understand that electronic signatures are legally binding and that they are choosing to use them voluntarily. 2- Identity Verification: We take steps to verify the identity of our users to ensure that the person signing the document is who they say they are. We do this by requiring users to connect their wallet through a third-party wallet connector, such as WalletConnect, and sign blockchain transactions using their own wallet. 3- Audit Trail: We maintain an audit trail of all electronic signatures, including the date and time of signature, the IP address of the signer, and any other relevant information. This audit trail helps to ensure that the signature is authentic and can be verified if necessary. 4- Security: We take security seriously and have implemented measures to ensure the security and integrity of the documents signed on our platform. We use encryption to protect all data in transit, and we store all documents and signatures on secure servers with restricted access. 5- Retention: We retain electronic records of signed documents for a period of time as required by law. This ensures that the signed documents are available for future reference if necessary. 6- Authentication: IDsign uses wallet authentication through third-party wallet connectors like WalletConnect to verify the identity of users. This ensures that the person signing the contract is the owner of the wallet and provides a higher level of security than traditional username and password authentication. 7- Blockchain ledger: IDsign utilizes blockchain technology to create a tamper-proof and immutable ledger of all signatures and contract details. This creates a record that is verifiable and cannot be altered or deleted, providing a higher level of transparency and security than traditional paper-based contracts. 8- Proof-of-Signature: IDsign provides a Tokenized proof-of-signature that is recorded on the blockchain and can be used to verify the authenticity and legality of the signed contract. This provides an added layer of protection against disputes or legal challenges. 9- Compliance with E-Sign Act: IDsign is designed to comply with the legal requirements for electronic signatures under the E-Sign Act, including requirements for consent, record retention, and the ability to produce an accurate and complete copy of the signed contract.

Overall, IDsign complies with the legal requirements of the E-Sign Act through the use of blockchain technology, wallet authentication, and encryption of personal information. These measures ensure that the contracts signed on the platform are legally binding and enforceable in a court of law.

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