Ethereum’s dominance as the Blockchain of choice for DAOs remains strong, but other chains may be more suitable.
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.
It is worth remembering that among the new monetary systems that have emerged, in relation to the possibility of installing computer programs on their Blockchains, Ethereum stands out, created by the Russian programmer Vitalik Buterin. These programs, deployed on the chain, are smart contracts, labelled as such in honor of the cryptologist Nick Szabo who published an article in 1995 in which he described a form of computer program that executes itself. Smart contracts deployed on public Blockchains are not capable of self-executing, but that name remains. A smart contract, despite its name, neither is a contract nor is it intelligent; it is just a code.
Ethereum Compared to other Chains
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, the Solana ecosystem has only 140, Cardano has 10 DAO, according to ecosystem tracker Cardano Cube, 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.”
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.”
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 she thinks EOSIO is better for building DAOs.
He asserts 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 is in contrast to EOSIO, which according to McKenna “was built in part for the purpose of DAO”.
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. In addition, keeping coins in an account is quite complicated compared to Ethereum.
By Audy Castaneda
