We may have known Ethereum blockchain as the best one when it comes to executing smart contracts. In all its capacities, however, Ethereum may have seen most of its successes due to the Ethereum Virtual Machine (EVM). But, what exactly is the Ethereum Virtual Machine, and how does it work?
Let us dig in and find out in this article.
What is the Ethereum Virtual Machine?
Ethereum Virtual Machine (EVM) is a software that dictates how computing is done on the Ethereum network, from block to block. It constitutes an important part of the Ethereum blockchain as it executes smart contracts, carries out transactions, and updates account balances.
To put it in simpler terms, EVM is a virtual machine or even a cloud computer that powers the Ethereum network. Further, it is an environment where all Ethereum accounts and smart contracts live. It functions as a decentralized computer that runs on the global network of Ethereum nodes.
Just imagine how a computer works, in executing code, with a memory to save information. That is how exactly an EVM is made. However, EVM is not just made up of only one computer. It is made up of a pool of thousands of cloud machines globally.
It carries out the functions of executing smart contracts, storing data, managing the state of the Ethereum blockchain, and calculating gas fees.
How Does the EVM Work?
For developers on the Ethereum network, they usually write their code using the Solidity programming language. The code will then be translated to byte code so that the EVM can be able to read the instructions.
While translating the code from Solidity to byte code, the instructions will first be broken down into opcodes or operation codes. The broken opcodes makes it easier for the EVM to identify the right way on how it can carry out a transaction.
We all know that when you carry out any transaction on Ethereum, you must carry in mind the requirement to pay gas fees for your transaction to be executed. As such, it is essential to understand the relationship between opcodes and gas fees in comprehending how the EVM works.
For easier understanding, in theory, every time you pay gas fees, you are actually paying for the opcodes to be executed by the EVM. The more opcodes there are in your transaction, the more you will pay for gas fees.
In addition, EVM eases the process of creating new tokens on Ethereum blockchain. It also plays an important role in providing a platform where decentralized applications (dApps) are built on.
Generally, EVM ensures that all transactions and smart contracts made on the Ethereum network are executed in the correct and expected manner as the smart contract code desires.
EVM’s Main Features
EVM is made up of several key features that include;
- Deterministic Code Execution
EVM carries out the execution of code in a more deterministic manner. This means that a specific smart contract will always produce the same output for the same input, regardless of where or who is executing it.
- Turing-Complete Virtual Machine
EVM is developed as a Turing-complete virtual machine. This type of machine refers to the one that can solve any problem if it is given the needed time, complete instructions, as well as the required energy.
- Isolation
By design, EVM works in isolation from the rest of the computer system. This ensures that the smart contracts are executed within a safe environment.
Importance of EVM-Compatibility
You may have known by now that Ethereum is one of the most valuable smart contracts public blockchain networks in the world.
There are several blockchain networks, however, that are designed to be EVM-compatible. This allows the blockchain networks to execute Ethereum smart contracts.
In this case, EVM compatibility paves the way for developers to deploy their smart contracts in an easy way across Ethereum and several EVM-compatible chains. Such networks can take advantage of the vast pool of Ethereum users, which can be beneficial to their growth and mass adoption.
EVM-compatible chains include BNB Chain, Polygon PoS, Avalanche, Optimism, Arbitrum, Fantom, and Cronos.
Setbacks Associated with EVM
Building on Ethereum in it has many benefits. However, it is always known that all good things come at a price, and in Ethereum, that price is high gas fees. The EVM still has scalability issues, as it can only handle a limited number of transactions per second. This means that when the network is crowded, the gas fees can easily shoot up.
Another setback is that, when using EVM and you deploy a smart contract on the blockchain, you cannot change it. This becomes an issue, when as a developer, you discover a bug or vulnerability after deployment.
Final Thoughts
The EVM software makes up one of the most important factors of Ethereum, maintaining the state of the blockchain as well as executing smart contracts in the network. The growth we have seen on Ethereum has in turn made EVM an industry standard, making other blockchain networks create their systems in a manner that they can be compatible with it.
All in all, the future of EVM is bright, with growing adoption and exciting developments on the horizon.