Digital signature is used in electronic contracts because it has legal effect and is being widely used. In 2000, the new People's Republic of China (PRC) Contract Law confirmed the legal effect of electronic contracts and electronic signatures for the first time. On April 1 2005, the first electronic signature law in People's Republic of China (PRC) was formally implemented.

Electronic contracts also use digital signatures for the following reasons:

Electronic signature is a broad concept, and digital signature can be regarded as a way to realize electronic signature, which provides higher functions than the basic requirements of electronic signature.

Two functions:

Identify the signer

Indicates the signer's approval of the content.

According to the provisions of Articles 5 to 8 of the Electronic Signature Law, electronic contracts that lock the true identity of the signer, effectively prevent document tampering and accurately record the signing time are legally recognized.