Ruby on Rails is renowned for its developer-friendly environment, allowing for rapid application development. One of the primary reasons it's considered the best framework for modern web development is its emphasis on convention over configuration. This means that developers can follow standard practices and guidelines, significantly reducing the amount of code they need to write. In addition, Ruby on Rails comes with built-in tools that streamline common development tasks such as routing, database migrations, and asset management, further enhancing productivity.

Another compelling reason to choose Ruby on Rails is its vibrant community and extensive library of gems. These gems, which are pre-built libraries and modules, allow developers to easily integrate complex functionalities without having to start from scratch. This not only accelerates the development process but also encourages innovation, as developers share and collaborate on new gems. With a strong support system and a wealth of resources available, Ruby on Rails emerges as a framework that empowers developers to create robust, scalable web applications efficiently.

Building your first web application with Ruby on Rails can seem daunting, but it’s a structured process that can be broken down into manageable steps. Start by ensuring you have the necessary tools, such as Ruby and Rails installed on your machine. Initialize a new Rails project by running rails new your_app_name in the terminal. This command creates a new directory with a default structure, including essential files and folders. Once your environment is set up, you can start crafting your application by generating models, controllers, and views using the command line tools Rails provides.

Next, you’ll want to focus on the MVC architecture that Rails utilizes. MVC stands for Model, View, and Controller, and understanding this pattern is key to organizing your code effectively. Begin by defining your data models—these represent the structure of your application's database. Use rails generate model ModelName to create these models. After your models are set up, you can move to creating controllers and views to handle user interactions and display data. This workflow allows you to develop your application in a systematic way. As you implement features, make sure to test them frequently using Rails' inbuilt testing tools to ensure your application runs smoothly.

Ruby on Rails, while a powerful framework for web development, presents certain common challenges that developers must navigate. One significant challenge is the steep learning curve for beginners who are unfamiliar with the Ruby programming language or the Rails conventions. Many new developers can struggle with understanding the way Rails handles routing, database migrations, and ActiveRecord associations. To overcome this, it's essential to invest time in learning the fundamentals of Ruby as well as utilizing the plethora of resources available, such as tutorials, documentation, and community forums that foster knowledge sharing.

Another frequent hurdle in Ruby on Rails development is dealing with performance issues, especially as applications scale. As a project grows, developers might encounter sluggishness due to inefficient database queries or memory bloat. To tackle these performance bottlenecks, developers should consider implementing techniques like caching, optimizing database queries through tools like bullet, and employing background jobs using gems like Sidekiq. Regular profiling and monitoring of application performance using tools such as New Relic can also help identify and mitigate these issues before they impact users.