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: