A Systematic Literature Review of Decentralized Applications in Web3: Identifying Challenges and Opportunities for Blockchain Developers

The Internet has opened the floor to stakeholders by redefining the way of organizing, communicating, and collaborating that was initiated by the Web's development. The advancement of the World Wide Web is an outright phenomenon and significant and we witnessed the evolution of the Web. As decentralized technologies continue to gain traction, Web3, or the decentralized internet, has emerged as a promising approach to enable a more secure, transparent, and privacy-preserved digital landscape. In this paper, we thoroughly conduct a systematic study to explore the challenges and opportunities encountered by blockchain developers in the context of decentralized applications (dApps) in Web3. We analyze a set of peer-reviewed research articles, whitepapers, and technical reports and present an in-depth understanding of the current state of Web3 development and its implications. Our finding indicates the opportunities that Web3 can facilitate, such as expanded use cases, enhanced security and privacy, decentralized infrastructure, and the potential for enabling inclusive development resources for blockchain developers. Additionally, we highlight various challenges that blockchain developers deal with including scalability, security, privacy, interoperability, and the need for standardized tools and frameworks along with various challenges in the software development lifecycle (SDLC). While there are significant challenges to overcome, the potential benefits of Web3 are substantial and could lead to a more inclusive, secure, and transparent digital ecosystem. Furthermore, we emphasize the importance of continued research, collaboration, and innovation among stakeholders to address the identified challenges and capitalize on Web3's opportunities.