Digital signatures are encrypted electronic signatures that provide a higher level of security compared to traditional electronic signatures by binding a unique coded message to both the document and the signer. They ensure authentication, integrity, and non-repudiation, making them legally enforceable under laws like the ICT Act 2006 in Bangladesh. Conversely, electronic signatures, often just a scanned image of a signature, lack the same security measures and can be easily forged, making them less reliable.