thecoinrepublic.com
- Ethereum remains the first blockchain choice when it comes to DAOs, but then, is it the best suited?
- Ethereum is at the forefront when it comes to supporting DAOs in comparison to other leading chains.
- However, other chains might be better in some terms, but ETH is constantly working towards solving its gas fees and scalability issues.
The Crypto Industry and community usually choose the Ethereum blockchain for the majority of blockchain-based decentralised applications (DApps), but there is a possibility that other chains might prove to be a better choice to carry out the workload of decentralised autonomous organisations (DAOs)
Technical benefits and transactions with less cost are yet to be fully incorporated into the Ethereum Virtual Machines (EVM) chains. EVM compatibility facilitates a network to utilise the security features of Ethereum.
Ethereum, along with its compatible chains, is home to over 4,200 DAOs and protocols, and clearly, Ethereum has plus points when it comes to the number of DAOs compared to others. In contrast, according to data, other leading blockchain networks like Cardano (ADA) have only ten DAOs, whereas Solana (SOL) has 140 DAOs.
According to the CEO of DeepDAO, Eyal Eithcowich, who responded to an email by a news website, Ethereum’s dominance lies in the fact that it is the chain where the DAO movement started. And that more importantly, Ethereum is the most mature ecosystem concerning tools for starting and managing all facets of DAOs, mostly financial but not only. And this might change as other chains grow in popularity.
He further noted that Ethereum’s high gas fees is a backdrop for it. Adding that, Solana enables DAOs to carry out faster and cheaper transactions. But the supporting tools and features in the ecosystem are less efficient.
High gas fees have always been an issue for the vast ecosystem of Ethereum. But it was noted that in the month of March, the fees were the lowest since August 2021.
CEO of Koinos, the blockchain consulting firm, Andrew Levine, highlighted criticisms for EOSIO, which apparently Saro McKenna, co-founder of Alien Worlds, supports for developing DAOs. But Levine wrote earlier that while EOS transactions are virtually free from fees, there is an account creation fee. And that holding coins on an account is more complicated than Ethereum.
He highlighted that the EOS database is created on something called memory-mapped files, another vestige of the Steem design. And an essential consequence of which is that it is designed to utilise the most expensive form of storage possible, random access memory.
However, Ethereum might have issues related to scalability and gas fees, but the network is constantly striving to eliminate these as it is working on the development of Ethereum 2.0. And after the complete rolling out of ETH 2.0, it might be possible that it will become an even more reliable and stronger network to support DAOs.