ECONOMY IN THE DIGITAL ERA –
REVIEWER
3. Personalization:
Customized
experiences for every user.
4. Network Effect: Easy sharing of
videos, products, locations, etc.
What is Digital Economy?
➢ Transformation of daily economic
activities into digital form.
➢ Traditional stores replaced by
5. Free Content: Free access to
content in exchange for ads.
6. Ubiquity:
Accessible
from
anywhere in the world.
online systems.
➢ Information and Communication
Technology (ICT) is the backbone.
➢ Internet (hyperconnectivity) is
the heart of the digital economy.
Components of the Digital Economy
1. Electronic Devices
-
Hardware
for
digital
transactions
and
communication.
DIGITAL ECONOMY CONNECTIONS
2. Internet
-
•
People
•
Businesses
•
Devices
•
Data
•
Processes
All linked online to create economic
activities.
Enables
cloud
innovations
computing,
like
video
conferencing.
3. E-commerce
-
Buying/selling
services
online
goods
and
(Amazon,
Shopee, Lazada).
4. Social Media
-
Communication
and
promotion tool (Facebook,
Characteristics of a Digital Economy
1. Connectivity: Internet connects
people, businesses, governments.
2. Mobility: Work anywhere with
devices.
Instagram).
5. Artificial Intelligence (AI) and
Data Analytics
-
Smart systems that learn,
automate, solve problems.
6. Cloud Computing
-
Online
▪
storage
for
files,
documents, passwords — no
need for USBs.
Digital
meetings
(Zoom, Teams).
3. Virtualization
-
Creating virtual versions
of workplaces, services.
12 THEMES OF THE NEW ECONOMY
Examples:
▪
1. Knowledge
-
▪
-
Academic Research
workspace
(e.g.,
(R&D)
Microsoft
Virtual
IT
Campus).
Programmers
apps,
▪
Government
Consumers (users
Agency ➔ Online
of tech services
services (BIR eFPS,
Story: Mark Zuckerberg
SSS,
created Facebook as a
portals).
multi-billion
dollar
-
Big businesses broken into
small, independent units.
2. Digitization
-
Turning analog data into
Examples:
▪
digital.
Scanning
to
PDFs.
Using
e-wallets
(Gcash,
PayMaya,
PayPal).
Independent
operators.
documents
▪
Uber/Grab drivers
➔
Example:
▪
PAGIBIG
4. Molecularization
company.
-
Virtual
software)
student project, later a
-
Business
Online
Park
(new
▪
Virtual
➔
Example:
▪
➔
working remotely.
Using human knowledge
▪
Alien
Freelancer
to create value.
-
Virtual
▪
Airbnb
hosts
➔
Property owners as
small
units.
business
5. Integration & Internetworking
-
-
Different systems work
▪
together.
-
Example:
Phone + Camera +
Example:
▪
GPS + Browser
Shopee integrates
with
GCash
▪
for
payments.
▪
Apple
devices
compatible
Social
+
Streaming
+
Shopping
with
Microsoft
8. Innovation
platforms.
-
6. Disintermediation
New ideas, technologies,
Removing middlemen in
-
▪
▪
Booking
Product
➔
Innovation
flights
directly on airlines
New
(no travel agents).
products.
▪
digital
Process
Selling
content
directly
via
Innovation
➔
YouTube
or
Automation
and
TikTok.
efficiency
Peer-to-peer
improvements.
payments
via
GCash, PayPal (no
bank needed).
7. Convergency
-
to
Types:
▪
Examples:
▪
models
improve industries.
transactions.
-
➔
media
Messaging
business
-
➔
Smartphone
Merging
of
technologies.
different
9. Prosumption
-
People
are
both
consumers and producers.
-
Example:
Customer
feedback
improves
products.
▪
Flash sales based
on
customer
demand
▪
(Lazada,
▪
worldwide
Smartphone
Amazon,
designs based on
Lazada.
feedback
▪
(Samsung, Xiaomi).
service.
-
Chatbots
for
customer
service
24/7
(Shopee,
Problems caused by rapid
tech changes:
▪
leaks)
Instant
money
transfers
(GCash,
▪
Fast
conflicts
delivery
▪
Job
disruptions
(workers replaced
Foodpanda).
by automation)
Instant
video
Global
connection
of
businesses and markets.
Example:
BPOs
Top Countries Leading in Digital
Economy
11. Globalization
▪
between
(GrabFood,
YouTube).
-
Regulation
countries
streaming (Netflix,
-
Cybersecurity
issues (hacks, data
PayMaya).
▪
GCash,
cryptocurrencies.
Lazada).
▪
International
12. Discordance
Examples:
▪
Shopee,
PayPal,
Instant access, real-time
▪
via
payments through
10. Immediacy
-
products
Shopee).
user
-
Selling
➢ USA:
-
the
Philippines
GDP
Strong AI/Tech (Google,
Microsoft, OpenAI)
-
providing services
globally.
Trillion
(2024)
-
in
$29.16
Largest
e-commerce
market (Amazon, eBay)
-
Strong cybersecurity
-
Top startup ecosystem
➢ China:
-
$18.27
Trillion
GDP
Startups in the Digital Economy
▪
disruption.
(2024)
-
40%+ GDP from digital
▪
economy
-
Leader in digital payments
(WeChat Pay, Alipay)
-
Big investments in AI, 5G
$6.31 Trillion GDP (2024)
-
Leader
in
robotics,
Smart
▪
Fintech (Financial tech)
▪
E-commerce
▪
Artificial
▪
▪
automation
-
They thrive in:
Intelligence
(AI)
➢ Japan:
-
Startups drive innovation and
Blockchain
They use digital tools, cloud
services, and online marketplaces
city
projects
to grow fast.
(Tokyo, Osaka)
-
High adoption of cashless
payments
SUMMARY
➢ Singapore:
-
$501.43
Billion
GDP
(2024)
-
#1
in
digital
competitiveness
-
Smart city infrastructure
leader
-
Best
cybersecurity
framework in Asia
-
Strong e-governance
The digital economy connects everything
online,
focuses
on
speed,
personalization, and innovation, and
removes borders in business. However,
it also faces problems like cybersecurity
and regulation issues.
WWW and Internet
•
Example:
https://www.example.com/prod
ucts?id=123&category=clothing#
WORLD
WIDE
WEB
COMPONENTS
Web Browsers
Structural Components
•
details
(WWW)
Structural
organize,
•
Safari.
components
display,
and
allow
•
They ensure proper formatting,
interactivity, and accessibility via
browsers.
Hyperlinks
•
Defines structure and content of
web pages.
•
Uses
Client and Server
•
tags
for
headings,
Programming
o
tools/software
o
Protocol that lets browsers and
servers communicate.
THE EARLY WEB – WEB 1.0
Transfers data to retrieve web
pages.
Addresses
resources.
that
locate
Before 2000s Characteristics:
•
Uniform Resource Locator (URL)
•
Servers send back the
requested content.
Hypertext Transfer Protocol (HTTP)
•
Clients (browsers) request
information.
create HTML files.
•
The web runs on a client-server
model:
paragraphs, images, links.
•
Links that connect different
pages or resources.
Hypertext Markup Language (HTML)
•
Interpret HTML and display web
content.
navigation on the web.
•
Applications like Chrome, Firefox,
Static Pages:
No interactive
features, just informational.
web
•
Content Stored in Files: No
databases; content inside website
files.
•
Mixed Content and Layout:
TRANSITION TO WEB 3.0
How will Web 3.0 work?
•
Styling was built into HTML using
HTML will still define webpages
but
tables.
data
sources
will
be
decentralized.
•
Web 2.0 = centralized databases
(controlled by companies).
WEB 1.0 EXAMPLES
•
3.0
=
blockchain
(decentralized, no single owner).
1. AOL (America Online)
▪
Web
•
Dominated early internet
Users will have more control
over data and privacy.
in the 1990s and early
2000s.
▪
Major
dial-up
internet
provider.
▪
Famous for email and
WEB 3.0 EXAMPLES
1. Brave Browser
instant messaging.
▪
Declined after broadband
became popular.
2. Encyclopedia
Britannica
(Online)
▪
Articles written by expert,
credible authors.
▪
A
trusted
compared
to
internet content.
Popular Web 3.0 browser
▪
Blocks ads and trackers
without plugins
▪
Works on mobile and
desktop
▪
Good for privacy and adfree YouTube viewing.
Used for reference and
academic research.
▪
▪
source
random
2. NFT Marketplace
▪
-
Buy/sell/trade
▪
▪
-
Example:
Bored
Ape
Yacht Club NFT sold for
Examples of Deep Web
•
$3.4 million.
▪
items,
•
•
Virtual world built on
•
currency:
MANA
•
•
and demand).
DAO
BPI,
Private
databases
(medical
(Decentralized
Autonomous
Paid
subscriptions
(Netflix,
Internal
company
networks
(business intranet)
(value depends on supply
▪
(BDO,
academic journals)
Ethereum blockchain.
Own
banking
records, research archives)
3. Decentraland
▪
Online
PayPal)
real
estate.
▪
Email inboxes (Gmail, Yahoo
Mail)
NFTs can be art, music,
gaming
Makes up 90-95% of the entire
internet.
NFTs are unique digital
assets on a blockchain.
passwords,
authentication, or special access.
Non-
Fungible Tokens (NFTs).
Needs
Government
databases
(tax
records, confidential documents)
•
Important: Deep web is usually
safe and legal.
Organization): No central
control.
▪
Simulates
real-world
activities like buying land,
interacting with people.
DARK WEB
-
Part of Deep Web that is
secretive and often illegal.
DEEP WEB VS DARK WEB
DEEP WEB
-
Parts of internet not indexed by
search engines (Google, Bing).
Cannot be accessed by normal
browsers
(needs
special
software like TOR).
-
Usually used for anonymous
and private activities.
Dark Web Characteristics:
•
Websites use .onion domains.
•
Requires TOR browsers or secure
Examples of Dark Web
1. Anonymous Marketplaces
▪
for illegal goods (drugs,
VPNs to access.
•
Often associated with illegal
activities (but not always).
Platforms like Amazon but
weapons).
▪
Examples:
o Silk Road: Famous
illegal marketplace,
shut down by FBI
(2013).
o The Marketplace:
Sold hacking tools,
counterfeit
documents, drugs.
2. Hacking
and
Cybercrime
Forums
▪
Forums for hackers to
trade
knowledge
and
tools.
▪
Examples:
o Hack
Forums:
Discuss
hacking
techniques,
vulnerabilities.
o Dark Web Reddit
Communities:
Topics like hacking
and
credit
card
fraud ("carding").