Definition ∞ The digital economy refers to economic activity that is based on digital technologies. It involves the production, distribution, and consumption of goods and services through the internet and other digital networks. This economic sphere is characterized by data, connectivity, and rapid innovation.
Context ∞ The digital economy is a rapidly evolving domain, with constant shifts in business models, technological capabilities, and regulatory frameworks. Current discussions frequently address issues of data governance, cybersecurity, and the equitable distribution of economic benefits derived from digital innovation. Future trends point towards increased integration of artificial intelligence, the metaverse, and further decentralization of economic participation.
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