Digital economy

The digital economy is a portmanteau of digital computing and economy, and is an umbrella term that describes how traditional brick-and-mortar economic activities (production, distribution, trade) are being transformed by Internet, World Wide Web, and blockchain technologies.[1][2] The digital economy is variously known as the Internet Economy, Web Economy, Cryptoeconomy, and New Economy. Since the digital economy is continuously replacing and expanding the traditional economy, there is no clear delineation between the two integrated economy types. The digital economy results from billions of daily online transactions among people, organizations (businesses, educational institutions, non-profits), and distributed computing devices (servers, laptops, smartphones, etc.) enabled by Internet, World Wide Web, and blockchain technologies. The digital economy is rapidly evolving into an Internet of Things (IoT), and could not exist in its current form without the Internet.[3]

The digital economy is backed by the spread of information and communication technologies (ICT) across all business sectors to enhance its productivity. Digital transformation of the economy is altering conventional notions about how businesses are structured, how consumers obtain goods and services, and how states need to adapt to new regulatory challenges. The future of work, especially since the COVID-19 pandemic, is also contributing to the digital economy.[4] More people are now working online, and with the increase of online activity that contributes to the global economy, companies that support the systems of the Internet are more profitable.[5]

According to the WEF, 70% of the global economy will be made up of digital technology over the next 10 years (from 2020 onwards). This is a trend accelerated by the COVID-19 pandemic and the tendency to go online.[6]

Share this article:

This article uses material from the Wikipedia article Digital economy, and is written by contributors. Text is available under a CC BY-SA 4.0 International License; additional terms may apply. Images, videos and audio are available under their respective licenses.