Although Ethereum has been chosen by the crypto industry and community as the preferred blockchain-based application (DApp), other chains might be more suited to handle 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.
The number of DAOs that Ethereum and its compatible chains can host is clearly higher than any other. According to Snapshot data, they house over 4,200 DAOs as well as protocols that require governance participants.
Comparatively, Solana has 140 DAOs and Cardano only 10, according to ecosystem tracker Cardano Cube. Polkadot Substrate claims it has only eight. DeepDAO, the DAO tracker, shows that three of the top 10 DAOs based on Solana are among the most popular 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 practical and simple reasons. This was in response to Cointelegraph. He says that Ethereum’s dominance is due to the fact it is “the chain from which the DAO movement began.”
“Ethernet is the most mature ecosystem when it comes to tools for starting and managing DAOs. This includes financial, but also non-financial, aspects. 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 is better at 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 blockchain consulting firm Koinos, had criticised EOSIO. This could explain why Ethereum’s adoption rate is lower than Ethereum’s. 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 as compared with Ethereum.
“The EOS database is built using something called’memory mapped files’, another remnant of the Steem design. It is also designed to use random-access memory, which is the most expensive storage option.