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Benefits and challenges of Web3

So far, we've looked at how to move from Web2 to Web3 on Chromia with the help of code examples, focusing on what you need to think about during this transition. The examples show that using Rell and other Chromia tools isn't as big a step as it might first seem.

The way Chromia works fits well with what most Web2 developers already know. But it's important to remember that there's more to the switch than just working on data models, business logic, and client interfaces. As a developer or someone invested in the project, you should also consider scalability, security, how you'll make money, and the costs of running everything.

Let's zoom out and consider some of the overall benefits and challenges of Web3.

Benefits of Web3​

  • Decentralized infrastructure: Information and control are distributed across nodes, ensuring no single point of authority.
  • Token monetization: Ability to integrate native tokens or cryptocurrencies for new revenue models.
  • Immutable data: Once data is written to a blockchain, it cannot be changed, ensuring data integrity.
  • Governance: Users are more involved in the governance of the application. Which means they can vote on changes and upgrades.

Challenges of Web3​

  • New concepts: Requires understanding of new concepts like consensus algorithms, dapps, operational costs, and fees.
  • Scalability concerns: Current blockchain infrastructures can have throughput limitations and are hard to scale depending on load. However, we will show in this module that this is different for Chromia.
  • End user complexity: Convincing users to set up and manage digital wallets can be a barrier to entry for many new applications.

These benefits and challenges can be broken down into three areas:

  • Scalability
  • Security
  • Revenues and operational costs

Next, we'll examine these areas more closely and discuss what you, as a developer, can do to mitigate the challenges and take advantage of the benefits.