2. Web3 Challenges

2.1 Complex Access to Data

While blockchains are theoretically open ledgers, major networks (e.g., Ethereum, Bitcoin) store data in structures that are not easy to query. Simple questions like:

• “Which account has the highest balance?”

• “How many NFTs with a green hat exist in a specific collection?”

are complex to code, expensive or slow to perform on-chain. As a result, developers and users resort to off-chain, centralized services for data processing and analytics.

2.2 Lack of Standardization and Interoperability

The blockchain space still lacks robust standardization for interoperable, reusable on-chain logic. While ERC-20 and ERC-721 set a strong foundation, new standards have stagnated, and code reusability remains poor. Meanwhile, traditional software ecosystems (e.g., NPM for JavaScript, Pip for Python) thrive on package managers that speed up software development while fostering collaboration and interoperability. No equivalent, widely adopted system exists for decentralized applications, limiting the growth of an open and collaborative Web3.

2.3 Single-Chain Approach

Most existing blockchain solutions attempt to handle DApp, smart contracts, or entire ecosystems on a single chain, much like running all websites in the world on one server. The result is congestion, high fees, and forks that lead to fragmented ecosystems. Many spin-off chains eventually support just one major application, highlighting a fundamental design limitation. True Web3 needs a more scalable, multichain architecture—where each DApp or ecosystem can run in parallel while seamlessly interoperating with others.