From the marketing perspective, a challenge is an activity that takes a fixed time to complete and takes a user from point A to point B.
As a SaaS company, you might think using this or that tool is already a difficult task and it’s not worth overwhelming your deca 300 users with another challenge. However, challenges or hackathons are meant to simplify the life of your users, help them achieve something meaningful, and do it in a fun way.
And in case, humans tend to welcome challenges and participate in them as they help us understand our potential, become confident and accountable, and have that nice feeling of reaching a goal.