The Electronic Signatures in Global and National Commerce Act recently went into effect. It specifies that people and companies can legally identify and verify who they are on the Internet using a set of encryption codes -- a string of uniquely assigned numbers -- attached to an electronically transmitted message. Under the law, the United States will recognize documents using these electronically created codes, or signatures, as legally binding agreements.

Many predict that this law will help clear the way for more rapid adoption of e-business transactions, including online contracts, collaboration, and supply chain management. Specifically, it will reduce the time and paper required for these transactions, which until now could be discussed and negotiated online but had to be finalized and put in writing offline.

The law enforcing the legality of e-signatures is technologically neutral; it specifies requirements, but not that a certain technology be used. Companies that offer digital signature technologies include Baltimore Technologies, Digital Signature Trust, RSA Security, and VeriSign.