What Is Ethereum Virtual Machine (EVM) ❓

You may have thought about how decentralized exchanges work, or ERC-20 tokens are creating. All this is possible thanks to Ethereum Virtual Machine (EVM). Let’s learn more about this technology.

The Concept of EVM

An EVM (Ethereum Virtual Machine) is a virtual environment responsible for executing unique algorithms inside the Ethereum blockchain called smart contracts. In theory, an EVM can perform any computing possible, given sufficient resources. 

The gas (gwei) acts as a payment for executing smart contracts, which is included in the cost of a transaction on the Ethereum Virtual Machine. The exact amount of gas depends on the complexity of the computing and the current workload on the Ethereum network. 

What Is the Purpose of Ethereum Virtual Machine ❓

An EVM is a distributed and decentralized network with thousands of computers worldwide that compute according to standard rules. Unlike the Bitcoin protocol, Ethereum is represented as an extensive array of data that the Ethereum Virtual Machine processes and modifies. Any code written to a block of ETH is independently executed on each virtual machine. 

The EVM Virtual Machine environment ensures that all transactions and smart contracts on the Ethereum network are executed according to the conditions specified in the smart contract. This is why Ethereum Virtual Machine is responsible for ETH transactions within the network, triggering the appropriate smart contracts and changing Ethereum address balances and application states. 

Where EVM Is Used ❓

Although many crypto projects use virtual environments, several well-known Ethereum Virtual Machine-based blockchain platforms exist. Here are a few of them:

▶️ Ethereum Classic, a platform for creating and running smart contracts based on the Proof-of-Work consensus algorithm.

▶️ VeChain, a blockchain based on the Proof-of-Authority consensus mechanism.

▶️ Fantom, a system for launching smart contracts using a directed acyclic graph. It has full compatibility with Ethereum Virtual Machine.

▶️ Polygon, a platform for running Layer 2 (L2) networks and applications on top of the Ethereum network.

What Are the Prospects of Ethereum Virtual Machine ❓

Ethereum’s transition to the Proof-of-Stake consensus mechanism marks the beginning of significant updates to the entire protocol. 

In June 2022, Vitalik Buterin presented a detailed roadmap for the Ethereum blockchain. One of its main milestones is the change of EVM to a new technology called Ethereum WebAssembly (eWASM). Developers have already noted its future benefits:

▶️ The speed of execution of smart contracts is close to native.

▶️ The ability to create smart contracts in popular programming languages, including C, C++, and Rust;

▶️ Access to a wide range of WebAssembly developers and tools.

In any case, releasing a document detailing Ethereum WebAssembly will clarify all the nuances.