Digital economy refers to an economy that is based on digital computing technologies, but is often perceived as conducting business through markets based on the internet and the World Wide Web.[1]It is also referred to as the Internet Economy, New Economy, or Web Economy. The digital economy is intertwined with the traditional economy, making a clear delineation harder. The digital economy results from billions of everyday online connections among people, businesses, devices, data, & processes. It is based on the interconnectedness of people, organizations, and machines that results from the Internet, mobile technology and the internet of things (IoT). Without the Internet, the digital economy that the global economy runs on would not exist in its current form.[2]
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.[3] 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.[4]