Is Ethereum really the best blockchain to form a DAO?

Is Ethereum really the best blockchain to form a DAO?

The cryptocurrency community and industry have chosen Ethereum as the chain of choice for most blockchain-based decentralized applications (DApps), but other chains may be better suited to handle the workload of decentralized autonomous organizations (DAOs).

Technical advantages and cheaper transactions have yet to become a major pull factor for Ethereum Virtual Machine (EVM) chains. EVM support allows a network to use the security features of Ethereum.

Ethereum and its compatible chains have a clear advantage in the number of DAOs compared to any other. They host more than 4,200 DAOs and protocols that require governance participants, according to data from blockchain voting platform Snapshot.

Comparatively Solana ecosystem has only 140, Cardano has 10 DAOaccording to Cardano Cube ecosystem tracker, and Polkadot Substrate says it has only eight. This does not rule out the fact that among the top 10 DAOs by the number of decisions made in the last seven days, the DeepDAO DAO tracker shows that three are Solana-based.

Ethereum’s advantage over the rest may be due to simple but practical reasons, according to the CEO of DAO tracker DeepDAO, Eyal Eithcowich, in response to Cointelegraph. He attributes Ethereum’s dominance to the fact that it is “the chain where the DAO movement started.”

“More importantly, Ethereum is the most mature ecosystem in terms of tools to start and manage all facets of DAOs, especially financial, but not only. This may change as other networks grow in popularity.”

On the other hand, he pointed to the high gas fees as a shortcoming of Ethereum. He added that Solana allows DAOs to perform fast and cheap transactions, “but again, the supporting features and tools in the ecosystem are less robust.”

What’s more, Solana has become vulnerable to infrequent network outages.

The co-founder of Alien Worlds, a non-fungible token (NFT) game on the EOSIO-based WAX network, Saro McKenna told Cointelegraph last week that he thinks EOSIO is better for building DAOs.

Read:  A new crypto services platform is launched in Spain: Oubita

He opines that Ethereum is too expensive for voting purposes and was designed to be a “general purpose blockchain” to handle any number of different tasks. This contrasts with EOSIO, which according to McKenna “was built in part for the purpose of DAO”.

“The EOSIO code base is extremely powerful; enables multisig permissions and dynamic charging election mechanisms that are critical for DAOs to function properly.”

Gas fees have long been an issue for Ethereum users, but in March, rates were at their lowest levels since last August.

However, the CEO of blockchain consultancy Koinos, Andrew Levine, has harshly criticized EOSIO which could explain why it does not catch up with Ethereum’s pace of adoption. In February, he wrote that, Although EOS transactions are practically free, there is an account creation fee. Also, keeping coins in an account is quite complicated compared to Ethereum:

“The EOS database is based on something called “memory-mapped files”, another vestige of Steem’s design, an important consequence that is designed to use the most expensive form of storage possible: random access memory.”

Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.

Keep reading:

Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.