What is an EVM Compatible Blockchain? Explained!

Interoperability between blockchains is one of the biggest challenges the industry is working to solve. A key development in addressing this issue is the rise of EVM compatible blockchains. EVM, or Ethereum Virtual Machine, is essentially the environment where all Ethereum accounts and smart contracts live. It’s the backbone of Ethereum’s decentralized applications (DApps) and smart contract execution, allowing developers to create complex decentralized solutions.

However, with the growing popularity of Ethereum, the network started facing significant scalability challenges, leading to slow transaction speeds and high gas fees. That’s where EVM compatible blockchains come in — they provide the same functionality as Ethereum but with improved performance metrics, such as lower fees and faster transactions.

What is the Ethereum Virtual Machine (EVM)?

To understand what EVM compatible blockchains are, it’s essential to first grasp the concept of the EVM itself.

Ethereum is a global, decentralized network, but it’s not a traditional computer with a single CPU. Instead, the EVM acts as a virtual CPU that runs simultaneously across all nodes (computers) in the Ethereum network. When developers write smart contracts in Solidity, Ethereum’s primary programming language, these contracts are compiled into bytecode and executed by the EVM.

The EVM operates on a unique set of instructions that allow for the creation and execution of smart contracts, maintaining the state of the entire Ethereum blockchain. EVM functions as a distributed state machine, meaning it tracks the current state of the blockchain and ensures it can only be changed by reaching consensus among all participating nodes. This makes it fundamental to executing smart contracts and ensuring that every node remains synchronized.

A crucial aspect of the EVM is its deterministic execution. This ensures that smart contracts always produce the same output given the same input, regardless of the node executing the contract, a feature that is critical for the integrity of the Ethereum blockchain’s consensus mechanism. It is also designed to be isolated from the computer’s operating system, ensuring security by creating a sandbox where smart contracts are executed. This isolation prevents malicious actors from compromising the system’s underlying infrastructure, safeguarding the network.

To learn more about Ethereum Virtual Machine visit Ethereum’s official documentation.

What is EVM compatibility?

EVM compatibility refers to the ability of a blockchain to run the Ethereum Virtual Machine (EVM) and execute Ethereum smart contracts. This allows developers to write and deploy the same smart contracts across multiple EVM compatible blockchains with minimal code changes.

By enabling smart contracts to interact seamlessly with other EVM compatible chains, developers can create multichain decentralized applications (dApps). This multi-chain functionality expands the reach and flexibility of projects, as developers can leverage the strengths of various networks—such as lower fees, faster transactions, or enhanced security—while providing a unified experience for users across different blockchain ecosystems.

Multichain dApps are applications that operate across multiple blockchain networks simultaneously, allowing users from different chains to interact with the same dApp.

Why Do We Need EVM Compatible Blockchains?

While Ethereum was the first blockchain to implement smart contracts, its popularity has led to significant congestion, making it less efficient for users and developers. To tackle these limitations, various other blockchains have introduced EVM compatibility. By being compatible with the Ethereum Virtual Machine, these blockchains can run Ethereum-based smart contracts and DApps without requiring developers to learn a new programming language or rebuild solutions from scratch.

Benefits of EVM Compatible Blockchains

EVM compatible blockchains offer a range of advantages that make them attractive to developers and users, providing a more flexible and accessible blockchain ecosystem:

1. Interoperability and Portability
   Smart contracts and decentralized applications (dApps) built on one EVM compatible blockchain can easily be migrated to others, such as from Ethereum to Polygon or Avalanche, with minimal code changes. This seamless portability enhances the interoperability of blockchain networks, allowing projects to scale across multiple platforms and promoting a more interconnected decentralized ecosystem.
2. Lower Transaction Costs
   Compared to Ethereum, many EVM compatible blockchains offer significantly lower gas fees, making decentralized applications more affordable to develop and use. By reducing transaction costs, chains like Binance Smart Chain (BSC) and Polygon lower the barrier to entry for developers and users, encouraging broader adoption of blockchain technology.
3. Faster Transaction Speeds
   EVM compatible blockchains often process transactions more quickly than Ethereum. Networks like Polygon and BSC offer faster block times and higher throughput, reducing wait times and improving the overall user experience for dApp users. This makes these chains particularly appealing for high-demand applications that require quick transaction finality.
4. Energy Efficiency
   Many EVM-compatible blockchains use more energy-efficient consensus mechanisms, such as Proof of Stake (PoS), which consume less energy per transaction than Ethereum’s Proof of Work (PoW) system (until Ethereum’s full PoS transition with ETH 2.0). This makes them a more environmentally friendly option for developers and users concerned with blockchain’s ecological impact.
5. Developer Convenience
   EVM compatible chains use Solidity, Ethereum’s programming language, allowing developers to build dApps without having to learn a new coding language. This means projects developed on Ethereum can be easily adapted to other EVM-compatible chains, saving developers both time and cost. Additionally, the standardization of tools and frameworks across these chains ensures a smoother development process and faster time to market.
6. Broader Ecosystem and User Base
   DApps deployed on EVM compatible blockchains can tap into the vast Ethereum ecosystem, which includes millions of users, wallets, and DeFi applications. This wide user base drives mass adoption and increases the potential reach of decentralized applications, enabling projects to thrive across different blockchain communities.
7. Cross-Chain Bridges
   EVM compatible chains often support cross-chain bridges, enabling tokens and data to flow easily between different blockchain networks. This enhances the overall interoperability of the decentralized ecosystem, allowing users to move assets and interact with dApps across multiple chains without friction.

Drawbacks of EVM Compatible Blockchains

While EVM compatibility offers many benefits, there are also a few drawbacks that developers and users should consider:

1. Scalability Challenges
   Despite improvements over Ethereum, EVM-compatible blockchains can still face scalability issues, particularly during times of high network demand. These blockchains often inherit the limitations of the Ethereum Virtual Machine, which can slow down transaction processing when too many users interact with the network at the same time. As a result, developers may encounter bottlenecks in performance and user experience.
2. Smart Contract Vulnerabilities
   EVM-compatible blockchains use smart contracts that, if not properly coded and audited, can expose the network to security risks. Vulnerabilities in the code can be exploited by bad actors, leading to potential loss of funds or network instability. Developers must be diligent about auditing their smart contracts to ensure security, but this can be time-consuming and costly.
3. Centralization Concerns
   Several EVM-compatible blockchains, like Binance Smart Chain (BSC), have been criticized for having a more centralized architecture. In some cases, a small number of validators control a large portion of the network, which contradicts the decentralized principles of blockchain technology. This centralization can create security risks and reduce trust in the network’s fairness and transparency.

These drawbacks highlight that while EVM compatibility facilitates interoperability and scalability, it still has limitations that developers and users must carefully manage.

Examples of EVM Compatible Blockchains

Several blockchains have successfully launched EVM compatible networks, enabling users to benefit from Ethereum’s infrastructure while overcoming its scalability issues. Some of the most notable examples include:

• Binance Smart Chain (BSC): Known for low transaction costs and fast block times, BSC is one of the most popular EVM-compatible blockchains.
• Polygon: Formerly known as Matic, Polygon enhances Ethereum’s scalability by offering a multi-chain system with low gas fees.
• Avalanche: This platform focuses on speed, low costs, and eco-friendliness while maintaining full compatibility with Ethereum smart contracts.
• Fantom: Optimized for speed and throughput, Fantom is an excellent choice for DeFi applications.
• Optimism: Built on top of Ethereum, Optimism focuses on scalability and reducing transaction fees using Layer 2 scaling solutions.
• Arbitrum: Another Layer 2 solution, Arbitrum is designed to reduce congestion on Ethereum, offering faster and cheaper transactions.
• Tron: Fully EVM compatible, Tron allows developers to migrate Ethereum DApps with minimal modifications, offering fast transaction speeds and low costs.

With over 700 EVM compatible blockchains now available, developers can leverage a wide variety of platforms to deploy their DApps and smart contracts.

RPCs on Metaschool

• EOS EVM Network RPC and Chain Settings
• DeFiChain EVM Network Testnet RPC and Chain Settings
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• Neon EVM TestNet RPC and Chain Settings
• EOS EVM Network Testnet RPC and Chain Settings
• Tanssi EVM ContainerChain RPC and Chain Settings

What is Cross Chain Interoperability?

Cross-chain interoperability refers to the ability of different blockchain networks to communicate, exchange data, and interact with each other. It allows assets, tokens, and information to be transferred seamlessly between various blockchains, breaking down the silos that traditionally exist between them.

In a blockchain ecosystem without cross-chain interoperability, each network operates in isolation, limiting the potential for collaboration and value exchange. With cross-chain interoperability, blockchains can interoperate, enabling users to interact with multiple blockchain networks through a single application. This enhances the functionality of decentralized applications (dApps) by allowing them to tap into the unique features and advantages of different blockchains, such as lower fees, faster transaction speeds, or specialized services.

For example, a decentralized finance (DeFi) application built on Ethereum could leverage cross-chain interoperability to interact with assets on Binance Smart Chain (BSC), or vice versa, allowing users to access the best features of each network in one place. This capability is essential for the future of blockchain technology, as it allows for more flexible, scalable, and efficient use of decentralized platforms.

The Future of EVM Compatible Blockchains

The future of blockchain technology is increasingly moving toward a multichain ecosystem, where multiple blockchains can interact seamlessly. EVM-compatible blockchains will play a crucial role in this shift. They provide a standardized environment for decentralized applications (dApps) by enabling smart contracts written for Ethereum to run on various blockchains, expanding the possibilities for developers and users alike.

As cross-chain interoperability becomes more critical, EVM compatible blockchains are uniquely positioned to lead the way. These networks allow dApps to operate across multiple chains, facilitating communication and value transfer between different blockchain ecosystems. This means that applications built on one EVM-compatible chain can be easily deployed on another, without the need for significant code modifications. This portability enhances the scalability and efficiency of decentralized applications, while reducing development time and costs.

The power of EVM compatibility lies not just in its ability to run Ethereum smart contracts, but in its role as a gateway to the broader Ethereum ecosystem. Developers gain access to a vast community, an extensive infrastructure, and a rich array of existing dApps, all while benefiting from the scalability, lower fees, and faster transactions that EVM compatible blockchains can offer. This future promises more user options, better functionality, and increased adoption of decentralized applications as blockchain networks evolve.

In essence, as the blockchain landscape becomes more interconnected, EVM compatible chains are laying the groundwork for a multichain future that optimizes for both scalability and interoperability, ensuring that the next generation of dApps can reach their full potential.

Conclusion

EVM-compatible blockchains address many of Ethereum’s limitations by offering faster transactions, lower fees, and higher throughput while maintaining full compatibility with Ethereum smart contracts. This enables developers to deploy DApps more efficiently, enhancing user experiences in decentralized ecosystems. With EVM compatibility, blockchains create a more interconnected, scalable world, unlocking powerful functionality for developers and users alike. The ability to deploy Ethereum smart contracts across multiple EVM chains positions these blockchains as key players in the next phase of Web3 evolution.

By leveraging EVM compatibility, developers and users can take advantage of the vast Ethereum ecosystem while enjoying improved performance and reduced costs. As blockchain technology continues to evolve, EVM compatible blockchains will remain crucial in creating an efficient, interoperable, and decentralized future.

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