Question

What are the challenges of digital economy??

Give 5 challenges with explaination

Answer 1

Over the next few years, Blockchain technology will be integrated and applied to diverse and creative applications, through transparency and decentralization of information. New models can challenge how organizations store and handle data transactions and allow internet-based businesses to create new financial products and services. Expanding the Internet of Things would generate millions of data sources capable of measuring and integrating physical and digital data to develop and improve goods and services, such as Biometrics Authentication. Quantum computing will open up new possibilities for a real-time economy, and mobile devices will have computing capacity.

After an early and atomized period of fintechs joining the financial industry, new major competitors will shape digital banks and challenge traditional industries. Smaller fintechs are likely to specialize in particular industries and will offer room to large companies such as Apple, Google and Facebook, which will concentrate on electronic payments and general financial services to their customers.

Millennials and the next generation of digital natives should face emerging technology problems differently. The robotisation of the economy and new initiatives such as universal income have become a reality. Citizens spend less time working and increasing their capacity to consume. The privacy debate will continue in a new era, with individual users relying on newer technologies to access their personal data, such as personal data lockers. In the one hand , people will be less willing to share their data, and data collectors will have to pay more for the personal data they will obtain.

A world without cash would soon become a reality. All digital transactions can allow businesses to get a better picture of their competition and perceive business prospects more clearly. A completely digital environment can make financial services more open and available and generate possibilities for a multimodal revolution like virtual reality, enable consumers to assess the value of a house or measure the mortgage cost of a particular vehicle. Data markets should allow new companies to acquire data that they do not create and generate new products and services. Crowdfunding is going to open room for crowdlending.

New global challenges to the economy will continue to grow and transform. The shared economy will consider a stronger legal structure and will continue to make progress. Major hacking would push countries and businesses to invest extensively in security and political structures to face repeated crises arising from a persistent security crisis.