The entire cryptocurrency community is experiencing a big boost in recent times. The continuous hustle to make the complete ecosystem more flawless has become the major objective of domain experts. However, despite the invasion of several blockchains into the cryptosphere Ethereum still stand stronger. Let us find out how impactful this dominance is and are there better blockchain alternatives available?
Ethereum and DAOs
So far, the Ethereum is considered the perfect solution for the formation of DAOs due to several technical reasons using which it provides immense support to Decentralized Autonomous Organizations (DAO). The own consensus of Ethereum is widely distributed and leads to trust-building across the networks.
The rigidity of Ethereum with respect to code modification allows users to run DAO strictly because even the owner cannot modify code once programmed. Smart Contracts allow easy transaction of funds by avoiding the existence of intermediaries to manage group funds. As a result, the Ethereum community has become more competitive and collaborative over the years allowing the implementation of better practices.
Dominance of Ethereum for DAO formation
The technical advantages of Ethereum have made the accessibility to the system cheaper and quick. Ethereum and its other compatible chains house more than 4200 days along with the protocols and governance participants. Whereas other emerging platforms like Solana and Cardano have only 140 and 10 days respectively. On the other hand, the Cardano Cube and Polkadot are reported to house eight of them.
Besides, the technical edges, Ethereum is seen to have enjoyed the first-mover advantage as this is where the initial movement of the DAOs started. Hence, Ethereum is considered the most mature platform for DAO formation due to its tools, management, and popularity. Additionally, the only challenge Ethereum faced was the high gas fees which have been addressed with its up-gradation to Ethereum 2.0.
Not to forget an emerging blockchain Solana does make the transaction faster and cheaper but its supporting tools are still the least robust. As a result, Solana has become more vulnerable to several network outages and still needs to undergo several up-gradation to be the best suited or competitive choice for DAO formation.
What role does EVM Chain play?
EVM Chain stands for the Electronic Virtual Machine which is maintained by Ethereum Clients over the network and is targeted at executing transactions and facilitating smart contracts. Every Ethereum node that runs on EVM helps to build better consensus across the blockchain. The EVM is focused on enhancing the functionalities of Ethereum such as network building and security.
As a result, provides a more technical edge and helps to pull more users while making it the unbeatable blockchain ecosystem. Thus, it can be said that EVM powers Ethereum by handling its work pressure for supporting DAO formation.
Presently, Ethereum seems to be the clear winner for DAO creation but this does not change the fact that other blockchain alternatives have joined the race, Since, the shift of Ethereum to Beacon Chain ( Ethereum 2.0) has proved to be the major boost for DAOs and DApps too yet other Blockchains like Solana and Cardano are gearing up their technicalities too.
Replacing Ethereum as the foundation of DAO is still a challenge other blockchains need to face. Hence, the Ethereum blockchain is so far dominating the formation of DAO and will continue to do so until better players invade.