Challenge 2: Data-Residency Requirements and Penpot's Self-Hosting Advantage — Solution Walkthrough

The answer:

Per this chapter's own material, Penpot's genuine, practical advantage
here is self-hosting — a team can run Penpot entirely on its own
infrastructure, keeping design files under its own direct control
rather than stored on a third party's servers.

Why Figma cannot offer this:

Per Chapter 1's own material, Figma is cloud-native by design — every
design lives on Figma's own servers from the moment it's created, with
no local file and no option to host that data elsewhere. This
architecture, which is exactly what enables Figma's own real-time
multiplayer collaboration, is also precisely what makes self-hosting
impossible for a company using Figma.

Why this is a real advantage, not just a theoretical one:

Strict data-residency requirements are a genuine, practical constraint
some organizations face, and no amount of Figma's own market dominance
or feature depth changes the fact that its architecture doesn't
support self-hosting. Penpot's own open-source, self-hostable model is
the only option between the two that can actually satisfy this
specific requirement.

WHY THIS WORKS AS AN ANSWER
------------------------------
This exercise checks that self-hosting is correctly identified as
Penpot's own genuine advantage, tied directly to the architectural
difference established in Chapter 1 about why Figma cannot offer the
same thing.