Although Ethereum has been chosen by the crypto community and the industry as the preferred blockchain-based application chain, other chains might be more suited for handling the work of decentralized autonomous organisations (DAOs)
The Ethereum Virtual Machine (EVM), chains have not yet seen the major draw of technical advantages and lower transaction costs. A network can use Ethereum’s security features through EVM compatibility.
Ethereum (ETH), and its compatible chains, have a clear advantage when it comes to the number of DAOs. According to Snapshot data, they house over 4,200 DAOs as well as protocols that require governance participants.
Comparatively, Solana (SOL), has 140 DAOs, Cardano has 10, according to ecosystem tracker Cardano Cube and Polkadot(DOT) Substrate, it has just 8. DeepDAO, a DAO tracker, shows that three of the top 10 DAOs based on Solana are among the top ten DAOs based upon the number decisions taken in the last seven days.
According to DeepDAO CEO Eyal Eithcowich, Ethereum’s advantage over the rest could be due to simple but practical reasons. He attributes Ethereum’s dominance in the DAO movement to its “the chain where it started.”
“Ethereum is, more importantly, the most mature ecosystem in terms tools for starting or managing all aspects of DAOs, financial and not just. As other chains gain popularity, this may change.
He also pointed out that Ethereum’s high gas fees are a problem. He said that Solana is a platform that allows DAOs make quick and inexpensive transactions. However, the tools and support features in the ecosystem are weaker.
Solana is also vulnerable to network outages that are not often frequent.
Saro McKenna (co-founder) of the nonfungible token game (NFT), on the EOSIO-based WAX Network Alien Worlds, said last week to Cointelegraph that EOSIO (EOSIO) is better for building DAOs.
She believes Ethereum is too costly for voting purposes. It was created to be a “general purpose blockchain” that can handle a variety of tasks. McKenna stated that EOSIO was partly designed for DAOs.
“The EOSIO codebase has a tremendous power, allowing for layered multisig authorizations and dynamic selection election mechanisms that are crucial for DAOs to work properly.”
While gas fees have been an issue for Ethereum users for a long time, they were at their lowest level since August last year.
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Andrew Levine, the CEO of Koinos, a blockchain consulting firm, has made criticisms of EOSIO, which could explain Ethereum’s low adoption rate. He wrote in February that EOS transactions are almost free, but there is a fee for creating an account. In addition, it is quite complicated to hold coins in an account than Ethereum.
“The EOS database is built upon something called “memory mapped files,” another remnant of the Steem design. It is also designed to use the most expensive storage available: random-access memory, RAM.