HomeOPINIONEthereum blockchain as the most effective to form a DAO

Ethereum blockchain as the most effective to form a DAO

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Over time, the Ethereum blockchain has continued to surpass the test of time, particularly in the formation of decentralized autonomous organizations. The blockchain, having won the patronage and loyalty of the crypto community undoubtedly waxed stronger than its contemporaries. In today’s crypto industry, subscribers prefer to overtly bank on Ethereum blockchain for DAO formation than other blockchains. Accordingly, this article seeks to comprehensively analyze how the Ethereum blockchain remains the blockchain to beat, particularly in the formation of DAO.

How the Ethereum blockchain works

Over time, the Ethereum blockchain has continued to surpass the test of time, particularly in the formation of decentralized autonomous organizations. The blockchain, having won the patronage and loyalty of the crypto community undoubtedly waxed stronger than its contemporaries. In today’s crypto industry, subscribers prefer to overtly bank on Ethereum blockchain for DAO formation than other blockchains. Accordingly, this article seeks to comprehensively analyze how the Ethereum blockchain remains the blockchain to beat, particularly in the formation of DAO.

Also, the Ethereum platform remains known for its native crypto, identified as Ether (ETH) or Ethereum. At the time of writing, the crypto trails bitcoin as the second digital asset possessing huge market value. Accordingly, the blockchain operates through a central component, known as the smart contract. This, however, indicates and determines how it functions.

How Decentralized Autonomous Organizations function

The DAO otherwise known as Decentralized Autonomous Organization serves as an effective and safer technique to partner with like-minds around the globe. DAO, however, pave way for universal collaborations, partnerships, and coordination. For instance, users through DAO can launch and accept donations from the global community and how the money becomes used is determined by the group. Unlike a traditional organization, premised on hierarchy, DAO remained programmed to stay flat and democratically oriented. As designed, the services offered by DAO manifest digitally, particularly in a decentralized approach, a development that makes it verifiable, public and transparent.

Accordingly, DAO works using a smart contract, which helps manage the finance services of the group. Furthermore, the smart contract plays a huge role in highlighting the rules of the group. So, when DAO becomes designed on the blockchain, the attached regulations remain until users vote otherwise. The programming of the network automatically rejects any operations, not in alignment with the existing rules of the group. With the presence of a smart contract, the finance of the group becomes safeguarded, making it impossible for anyone to spend without the group’s consent. DAO lacks a central administrator and thus puts the running of the group into the hands of members.

The Ethereum blockchain as the best for DAO operations

Accordingly, DAO works using a smart contract, which helps manage the finance services of the group. Furthermore, the smart contract plays a huge role in highlighting the rules of the group. So, whenever the DAO becomes designed and now installed on the Ethereum blockchain, the attached rules stay until users vote otherwise. The programming of the network automatically rejects any operations, not in alignment with the existing rules of the group. With the presence of a smart contract, the finance of the group becomes safeguarded, making it impossible for anyone to spend without the group’s consent. DAO lacks a central administrator and thus puts the running of the group into the hands of members.

However, by prevalent indications, the Ethereum blockchain enjoys varieties of technical features, a development that makes it the best bet for DAO formation. With the presence of the Ethereum Virtual Machine compatibility, the network becomes eligible to use Ethereum security features. This, however, provide an overwhelming edge for the blockchain, particularly in DAO formation. Accordingly, the Ethereum blockchain possesses the capacity to stock over 4,200 DAOs and protocols seeking governance partakers. These statistics manifested from the voting platform identified as Snapshot. The Ethereum blockchain when compared to others stays far ahead in terms of the number of DAOs it can house. For others, like Cardano possesses 10 DAOS and Solana ecosystem possesses about 140 as noted by the ecosystem tracker.


More so, the Ethereum blockchain manifested as the most efficient platform for DAO, because the latter started on the blockchain. This, however, justifies the inevitable dominance of the Ethereum blockchain above others as touching the DAO movement. This, nevertheless, made the platform more mature than others for DAO operations. In addition, it possesses varieties of features deployed in starting and sustaining all sections of DAO operations.

Building trust in DAO operations through the Ethereum blockchain


The Ethereum blockchain usually through its features allows a ground for a balanced consensus in all DAO operations. This, however, builds trust for the network and thus gives it an edge over other contemporary blockchains. In addition, Ethereum disallows any manipulation of the codes attached to smart contracts once DAO becomes live. With this, no one changes the rules attached to the group without proper and adequate consultation.

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