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In this tutorial, Dave shows how to create a digital signature using the Notes app. He demonstrates the process of adding a signature to a PDF document by using the markup tool. By clicking on the plus symbol, users can choose to add a text, signature, or magnifier. To create a new signature, simply press plus, use your Apple pencil or finger, and draw your signature in the designated box. Dave emphasizes the convenience of this feature for signing important contracts or documents digitally.