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In this tutorial, the instructor demonstrates how to create a digital signature by signing a piece of paper and scanning it. First, they recommend using a fine-tipped Sharpie for a clean signature. The paper should be aligned with the lines for neatness. After signing, the instructor uses an HP scanner, which offers options to save the signature as a PDF, email it, or print it. They specifically want to save the signature as a JPEG or PNG. The scanning process is initiated by clicking the scan button on the computer, using the Alt + S shortcut as well. This facilitates the transition from physical to digital signature effectively.