Digital economy

The term "digital economy" is a portmanteau that combines the words "digital computing" and "economy." It is an umbrella term that describes how traditional economic activities (production, distribution, and trade) are being transformed by technologies such as the Internet, the World Wide Web, and blockchain. Numerous names have been given to what is now often referred to as the digital economy, including the Internet Economy, Web Economy, Cryptoeconomy, and New Economy. The distinction between the two kinds of integrated economies cannot be drawn with precision since the conventional economy is being steadily superseded by the digital economy and is also growing in size. The digital economy is the product of the billions of daily transactions that take place online between individuals, organisations (including businesses, educational institutions, and non-profit organisations), and distributed computing devices (including servers, laptops, smartphones, and so on). These transactions are made possible by the Internet, the World Wide Web, and blockchain technologies. Without the Internet, the digital economy could not exist in its present form and is quickly transitioning towards what is being referred to as the Internet of Things (IoT).

The proliferation of information and communication technology (ICT) across all business sectors to increase their respective levels of productivity is a driving force behind the digital economy. Conventional ideas about how firms are formed, how consumers receive products and services, and how governments need to react to new regulatory issues are being upended as the economy undergoes a digital transition. These changes are occurring simultaneously. The nature of labour in the future, particularly in light of the COVID-19 pandemic, is also making a contribution to the development of the digital economy. There are now more individuals working online than ever before, and as a result of the rise in online activity that contributes to the overall economy, businesses that support the infrastructure of the Internet are seeing increased levels of financial success.

An economy in which digital computer technology are used in economic activities is referred to as the Digital Economy. This kind of economy is also often referred to as the New Economy.