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Is Ethereum Really The Best Blockchain To Create A DAO?

Ethereum is still dominating the blockchain of choice for DAOs and remains strong. However, a case is on the other chains might not be that suitable.

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

Moreover, technical advantages and cheaper transactions have yet to become a significant pull factor from Ethereum Virtual Machine (EVM) chains.

EVM compatibility enables a network to use Ethereum’s security features.

Ethereum (ETH) and its compatible chains have a clear advantage in the number of DAOs compared to any other.

According to data from the blockchain voting platform Snapshot, they house more than 4,200 DAOs and protocols requiring governance participants.

Comparatively, the Solana (SOL) ecosystem has only 140. Though the Cardano has 10 DAOs according to ecosystem tracker Cardano Cube. And the Polkadot (DOT) Substrate says it has just eight.

This is not to discount the fact that among the top 10 DAOs by the number of decisions made over the past seven days, tracker DeepDAO shows that three are based on Solana.

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

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

Other Blockchains Network For the DAO

Additionally, Solana has become vulnerable to infrequent network outages.

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

In her view, Ethereum is too expensive for voting purposes. It was designed to be a “general-purpose blockchain” to handle any number of different tasks.

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

However, the CEO of blockchain consulting firm Koinos, Andrew Levine, had pointed criticisms of EOSIO, which could explain why it falls short of Ethereum’s adoption rate. In February, he wrote that while EOS transactions are virtually fee-less, there is an account creation fee. Furthermore, holding coins on an account is difficult as compared to Ethereum:

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


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