The focus of this chapter is to discuss the New Economy and new Phenomenon of Digitalization. The author discussed various key terms of the digital economy including Cryptoeconomy, Gig Economy, and Virtual Economy. There are two approaches to digitalization; the bottom-up approach puts importance on being practical and clear, in contrast, a top-down or trend-based approach looks at large digital transformation trends and explains how these translate into the economy. For digitalization, the author discussed the Contemporary Theory of Digitalization (CToD). The author presents three levels of the Contemporary Theory of Digitalization; the first level consists of 3Ds, the second level consists of 5Ds, and the third level consists of 7Ds. Contemporary Theory of Digitalization (CToD) provides the logical framework, through which organizations, institutes, and states may be digitalized. This also provides a framework for organization-to-organization or state-to-state digital linkage.