The law, known as the Electronic Signatures in Global and International Commerce Act, removes the uncertainty that previously plagued e-contracts. Its proponents herald a more efficient paperless world, but consumer groups worry that the law doesn't adequately protect against online fraud and may create disadvantages and penalties for consumers who prefer printed agreements. For example, you write a contract on your computer, email it to a business associate, who emails it back with an electronic signature indicating acceptance.
Cryptography is the science of securing information.
It is most commonly associated with systems that scramble information and then unscramble it. PKI uses an algorithm to encrypt online documents so that they will be accessible only to authorized parties. Though its standards are still evolving, it is expected that PKI technology will become widely accepted and that consumers and businesses will own and use e-signatures, much like we now use PINs for our bank cards. Many other e-signature systems are being developed, including a method for digitally recording a fingerprint and hardware that electronically records your signature. The most significant legal effect of the new e-signature law is to make electronic contracts and signatures as legally valid as paper contracts.