Is Ethereum really the best blockchain to form a DAO? | Cryptocurrency

Ethereum’s dominance as the blockchain of choice for DAOs remains strong, but there are arguments for other chains that might be a better fit.

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

The technical advantages and cheaper transactions have yet to become a major pull factor for Ethereum Virtual Machine (EVM) chains. EVM compatibility allows a network to use Ethereum’s security features.

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

Comparatively, the Solana (SOL) ecosystem only has 140, Cardano has 10 DAOs according to ecosystem tracker Cardano Cube, and Polkadot (DOT) Substrate says it only has eight. That’s not to say that of the top 10 DAOs by number of decisions made in the last seven days, the DAO tracker DeepDAO shows that three are Solana-based.

Ethereum’s lead over the rest may be due to simple but practical reasons, according to Eyal Eithcowich, CEO of DAO tracker DeepDAO, in email responses to Cointelegraph. He credits Ethereum’s dominance to being “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, mainly financial but not only. This may change as other channels gain popularity.

On the other hand, he pointed to high gas fees as a shortcoming of Ethereum. He added that Solana enables DAOs to transact quickly and cheaply, “But, again, the ecosystem support features and tools are less robust. »

Additionally, Solana has become vulnerable to infrequent network outages.

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

In his view, Ethereum is too expensive for voting purposes and was designed to be a “general purpose blockchain” to handle a number of different tasks. This contrasts with EOSIO, which, according to McKenna, “was partly designed for DAOs.”

The EOSIO codebase is extremely powerful, enabling layered multisig permissions and dynamic collection election mechanisms that are essential to the proper functioning of DAOs.

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

However, the CEO of blockchain consulting firm Koinos, Andrew Levine, had criticized EOSIO, which could explain why it is falling short of Ethereum’s adoption rate. In February, he wrote that while EOS transactions are virtually fee-free, there are account creation fees. Additionally, holding coins in an account is quite complicated compared to Ethereum:

The EOS database is built on something called “memory-mapped files”, another holdover from the Steem design, an important consequence of which is that it is designed to use the most expensive form of storage possible: RAM. (RAM).

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Is Ethereum really the best blockchain to form a DAO? | Cryptocurrency


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