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EVM stands for Ethereum Virtual Machine. It is a Turing-complete software that runs on the Ethereum network. It’s essentially a vast, decentralized computer that maintains the state of the Ethereum network and facilitates consensus between thousands of nodes worldwide. Every node on the Ethereum network runs an instance of the EVM to maintain consensus across the blockchain and verify the execution of smart contracts.
The beauty of the EVM lies in its deterministic nature – given the same input and the same code, it will always produce the same output, regardless of where or when it’s executed. This predictability is crucial for maintaining consensus across the decentralized network.
Created in 2015 by Vitalik Buterin and Gavin Wood, EVM is used to create and execute smart contracts, decentralized applications, and other automated services autonomously without the need for a third party. It also manages its state whenever a block is created in the blockchain.
Core Components and Architecture
The Ethereum Virtual Machine (EVM) processes instructions through what we call “opcodes” – these are low-level programming instructions that perform basic operations. When you write a smart contract in Solidity or another high-level language, it gets compiled down to these opcodes that the EVM can understand.
The Ethereum Virtual Machine operates using several key components:
Stack: The main data structure where most operations take place, handling simple push and pop operations with a maximum depth of 1024 elements.
Memory: A temporary space that gets cleared after each transaction, used for storing data during contract execution.
Storage: The permanent data store where contract state variables live. Think of this as a contract’s hard drive.
Gas and Execution Model
One of the most important concepts in the Ethereum Virtual Machine is “gas” – the computational pricing mechanism that prevents spam and allocates resources on the network. Each operation in the EVM costs a certain amount of gas, with more complex operations costing more.
For example: Adding two numbers costs 3 gas, storing a value costs 20,000 gas, or creating a new contract costs 32,000 gas.
State and Transactions
The EVM maintains the entire state of the Ethereum network, which includes:
- Account balances
- Smart contract code
- Contract storage
- Nonces
When a transaction triggers a smart contract, the EVM creates what we call a “context” for execution. This context includes information about who initiated the transaction, how much Ether was sent, and what data was included.
Memory Management
The EVM handles memory in a linear fashion, expanding it as needed during contract execution. Developers should be aware that while memory is cheaper than storage in terms of gas costs, it’s still not free. The EVM charges more gas as you use more memory, following a quadratic cost formula. Read more about Ethereum Virtual Machines in the official documentation of Ethereum.
Smart Contract Execution
When your smart contract runs on the EVM, it goes through several phases:
- Code Loading: The EVM retrieves the contract’s bytecode
- Stack Setup: Preparation of the execution stack
- Instruction Processing: Step-by-step execution of opcodes
- State Updates: Any changes to the blockchain state are prepared
- Finalization: Changes are committed or rolled back based on success/failure
What does ‘EVM compatibility’ mean?
EVM (Ethereum Virtual Machine) compatibility signifies a blockchain’s capacity to execute Ethereum smart contracts, enabling developers to write and deploy identical smart contracts across various EVM-compatible blockchains with minimal code adjustments. This feature facilitates the creation of multi-chain decentralized applications (dApps) by allowing these smart contracts to interact seamlessly with other EVM-compatible blockchains.
Development Tools and Interfaces
The ecosystem provides several tools to interact with the Ethereum Virtual Machine
Web3.js and Ethers.js: JavaScript libraries for interacting with the EVM
Truffle and Hardhat: Development frameworks for testing and deployment
Remix IDE: Browser-based IDE for Solidity development
Ganache: Personal blockchain for Ethereum development
Benefits of Ethereum Virtual Machine
- Since the logic is implemented and executed on distributed nodes, there is no chance of ambiguity and error.
- Allows developers to create and deploy decentralized applications and services on the Ethereum network.
- Provides a secure and reliable platform for executing smart contracts and other automated services.
- Enables developers to write code that is resistant to malicious attacks and can be executed without a central authority.
- Provides a secure sandboxed environment that is resistant to malicious attacks and ensures the integrity of data and transactions.
- Provides high efficiency in the execution of smart contracts.
Major EVM-Compatible Blockchains:
A lot of companies have been using EVM for enterprise use cases. These companies range from supply and retail to healthcare and insurance. Here is a list of some blockchain companies powered by EVM:
ThunderCore (TT): A gaming-focused, EVM-compatible blockchain with native Thunder Token (TT) and ThunderCore Bridge for cross-chain mechanisms.
Binance Smart Chain (BSC): Notable for low transaction fees and high performance, attracting a multitude of dApps and users.
Avalanche C-Chain: Offers high throughput and scalability while ensuring Ethereum compatibility.
Cardano: Working on KEVM (K Semantics of the Ethereum Virtual Machine (EVM)) to enable Ethereum-style smart contracts, despite not being natively EVM-compatible.
TRON (TRX): A high-throughput blockchain aiming to decentralize the internet, started as an ERC-20 token.
Layer 2 Solutions: Networks like Arbitrum, Optimism, and Polygon (MATIC) offer scaling solutions for Ethereum, enhancing transaction speed and cost-efficiency using technologies like Optimistic Rollup.