A truly decentralized project requires a robust decentralized infrastructure that stores data not on paid servers but on a blockchain maintained by users and miners (Mining on HDD/SSD).
The same goes for a blockchain database. The database could be processed by the computers of the users and miners themselves (Mining on processors).
Thus, the cost of maintaining data can be greatly reduced, but the system's resilience can be increased.
Without this, the project will not become truly decentralized.
Advantages
Cost reduction: Project creators do not need to pay thousands of dollars per month for servers. The infrastructure is maintained by the internal economy (tokens).
Absolute stability: The system cannot be shut down by a single court or government decision, as copies of data and computing nodes are distributed across thousands of private computers.
Disadvantages
Latency: A centralized AWS server delivers data in milliseconds. Collecting an encrypted database piece by piece from hundreds of home computers over a regular home internet connection will be many times slower.
Consensus speed: The more CPU nodes involved in processing a database, the longer it takes them to agree on its single, current state. This creates a low throughput of transactions per second (TPS).
Difficulty of synchronization: It is extremely difficult for developers to release updates for such a system. Each user has to manually update the software on their own CPU/HDD node.
Lack of flexible queries: Traditional databases (like PostgreSQL) allow for instant execution of complex analytical queries. In a blockchain database, each such query requires a recalculation of the entire network, which makes complex Web3 applications unwieldy.
But... Without the transition to such a fully autonomous infrastructure, any decentralization remains just a marketing slogan.