Ethereum’s dominance as the blockchain of selection for DAOs remains robust, however there's a case being created for other chains which can be higher suited.
The crypto community and trade have chosen Ethereum as the chain of alternative for most blockchain-based suburbanised applications (DApps), however alternative chains is also higher suited to handle the employment for decentralized autonomous organizations (DAOs).
Technical advantages and cheaper transactions have nonetheless to become a major pull issue from Ethereum Virtual Machine (EVM) chains. EVM compatibility allows a network to use Ethereum’s security features.
Ethereum and its compatible chains have a transparent advantage within the variety of DAOs compared to the other. They house quite four,200 DAOs and protocols requiring governance participants in step with information from blockchain ballot platform photo.
Comparatively, the Solana scheme has solely one hundred forty, Cardano has ten DAOs, in step with scheme huntsman Cardano Cube and Polkadot Substrate says it's simply eight. this is often to not discount the very fact that among the highest ten DAOs by the amount of selections revamped the past seven days, DAO huntsman DeepDAO shows that 3 ar supported Solana.
Ethereum’s leg up over the remainder is also thanks to easy nonetheless sensible reasons, in step with DAO huntsman DeepDAO CEO Eyal Eithcowich in response to Cointelegraph. He attributes Ethereum’s dominance to the very fact that it's “the chain wherever the DAO movement started.”
“More importantly, Ethereum is the most mature ecosystem in terms of tools for starting and managing all facets of DAOs, mostly financial but not only. This may change as other chains grow in popularity.”
On the other hand, he pointed to high gas fees as a shortcoming of Ethereum. He further that Solana permits DAOs to create fast and cheap transactions, “But, again, the supporting options and tools within the scheme are less strong.”
Additionally, Solana has become vulnerable to occasional 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 is better for building DAOs.
In her read, Ethereum is too dear for vote functions and was designed to be a “general-purpose blockchain” to handle any range of various tasks. This contrasts with EOSIO, that McKenna same “was partly built for the purpose of DAOs.”
“The EOSIO codebase is extremely powerful, allowing for layered multisig permissions and dynamic collection election mechanisms that are critical for DAOs to function properly.”
Gas fees have long been an issue for Ethereum users, but in March, fees were at their lowest levels since last August.
( Brian Newar, Cointelegraph, 2022 )