# Problem

Web3-based services and technologies are rapidly advancing, but the following inconveniences still exist.

### 1. Scalability Issues

Currently, most blockchain networks have limited transaction processing capacity. For instance, Bitcoin and Ethereum have a restricted number of transactions they can process per second (TPS, Transactions Per Second). This leads to the following issues:

**1-1. Network Congestion**: As the number of users increases, transactions pile up in the queue, causing slower transaction processing speeds.\
**1-2. High Fees**: To expedite transactions, users may need to pay higher fees.\
**1-3. Scalability Solutions**: Layer 2 solutions (e.g., Plasma, Rollup) and sharding technology are being researched to address this. However, these solutions are still in their early stages.

### 2. User Experience (UX)

Web3 applications are difficult for the general user to access. This is due to factors such as:

**2-1. Wallet Usage**: Installing and managing cryptocurrency wallets is complex. You must securely store your private keys and backup phrases; losing them risks losing your assets.\
**2-2. User Interface**: Many DApps have non-intuitive interfaces, including terms and procedures that are difficult for beginners to understand.\
**2-3. Lack of Customer Support**: Due to the decentralized nature of applications, there is a lack of centralized customer support services, making problem resolution challenging.

### 3. Regulations and Legal Issues

The blockchain and cryptocurrency industry is rapidly advancing, but regulations and legal frameworks often fail to keep pace with it:

**3-1. Regulatory Uncertainty**: Many countries lack clear regulatory guidelines on blockchain and cryptocurrencies, creating uncertainty for project operators and investors.\
**3-2. Differences in Regulations Between Countries**: Different regulatory policies across countries increase complexity when operating internationally.\
**3-3. Legal Risks**: ICOs (Initial Coin Offerings) and other token issuance methods may be considered violations of securities or financial laws.

### 4. Security Issues

While blockchain technology itself is highly secure, there are various security threats in practical use:

**4-1. Smart Contract Bugs**: If there are bugs in smart contract code, it can become a target for hacking. For example, the DAO hacking incident is a representative case of exploiting vulnerabilities in smart contracts.\
**4-2. Phishing and Social Engineering**: Attacks frequently occur where users are deceived into revealing private keys or login information.\
**4-3. Exchange Hacking**: Centralized cryptocurrency exchanges have been major targets for hackers, leading to large-scale fund leaks.

### 5. Interface and Interoperability

The interoperability issues among various blockchain platforms cause the following challenges:

**5-1. Difficulty in Asset Movement**: Moving assets between different blockchains is complex and time-consuming.\
**5-2. Difficulty in Data Sharing**: There is a lack of efficient methods for sharing data between blockchains. \
**5-3. Interoperability Solutions**: Cross-chain technologies and bridge solutions are being developed to address these issues but are not yet mature.

### 6. Energy Consumption

Particularly, blockchains like Bitcoin that use Proof of Work (PoW) mechanisms consume large amounts of energy:

**6-1. Environmental Impact**: The power consumption in the PoW mining process negatively affects the environment, leading to an increased carbon footprint.\
**6-2. Energy Efficiency Improvement**: There are movements to improve energy efficiency by transitioning to proof of stake (PoS) systems like Ethereum 2.0.

### 7. Network Governance

Decision-making in decentralized networks is often slow and complex.

**7-1. Difficulty in reaching consensus**: As the number of participants increases, reaching a consensus becomes more challenging.\
**7-2. Introduction of changes**: Implementing significant upgrades or changes takes a lot of time, which can hinder the network's development speed.\
**7-3. Governance models**: Various governance models are proposed, but each has its pros and cons, making it difficult to find an ideal model.

### 8. Lack of Education and Awareness

Lack of awareness about Web3 technology among the public and enterprises hinders its adoption and spread:

**8-1. Lack of Technical Understanding**: Many people do not understand the basic concepts of blockchain and cryptocurrency. \
**8-2. Lack of Educational Programs**: There are not enough structured educational programs about Web3 technologies. \
**8-3. Media Coverage**: Often negative or biased media coverage can distort public perception.

### 9. Immaturity of the Developer Ecosystem

There is a shortage of skilled developers who can develop and maintain Web3 technology:

**9-1. Lack of Skilled Personnel**: Blockchain developers are fewer in number compared to general software developers.\
**9-2. Rapid Technological Advancement**: There is a need for personnel who can continuously learn and adapt to the fast-evolving technological environment.\
**9-3. Community Support**: Developer communities and support networks are not yet fully matured.

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These issues are hindering the development of the Web3 ecosystem. However, research and innovation to address these challenges are ongoing, and gradual improvement is expected. Although Web3-based services and technologies are advancing rapidly, the following problems still exist: