Cointime

Cointime

Download App
iOS & Android

What Is an Ethereum Virtual Machine (EVM) And Why Do We Need It

Validated Venture

EVM is a Turing completeness machine, which means that it can theoretically process any calculation that can be performed on computers with sufficient computing resources.

EVM uses “gas” (gwei) as payment for smart contract execution, which is included in the transaction cost. The amount of gas required by the user is determined by the complexity of the calculations performed and the current load on the Ethereum blockchain.

The EVM creator

The concept of Ethereum Virtual Machine was outlined in the “Yellow Paper” in 2015 by the co-founder of Ethereum and the technical director of the Ethereum Foundation Gavin Wood.

He also developed the Solidity programming language, which is used to create smart contracts on the Ethereum blockchain. In 2016, Wood left Ethereum to develop a new project — Polkadot.

Why do we need an Ethereum Virtual Machine?

Without a centralized control body, EVM can be represented as a set of distributed computers in the same network that follow the same rules.

Unlike the bitcoin protocol, which is presented as a distributed registry, Ethereum represents a large data structure for which EVM is responsible for processing and modification. Any code written to the Ethereum block is executed independently on tens of thousands of virtual machines.

EWM guarantees that all transactions and smart contracts on the Ethereum blockchain will be carried out in accordance with the smart contract code. It is EVM that serves as a platform for performing operations with tokens on the Ethereum network, such as calling smart contracts, changing address balances, and application states.

Gwei for EVM

Gwei is an internal currency in Ethereum that is used as payment for EVM transactions. 1 gwei equals 0.000000001 ETH. “Gas” in Ethereum is analogous to automobile fuel, with which the user must “fill up” the transfer before proceeding.

The gas limit for each transaction will vary depending on the complexity of the operation and the workload of the Ethereum network. For example, in mid-2021, against the backdrop of the Shiba Inu meme cryptocurrency’s hype demand, the average transaction fee in Ethereum reached $60, the swap on Uniswap cost $135, and the deposit replenishment in Compound cost more than $200. The main reason for this was the high load on the blockchain — a large number of users performed operations with Shiba Inu in parallel.

If the operation proves too complex, the gas limit may not be sufficient, and EVM will stop processing the transaction without writing it to the Ethereum blockchain.

The absence of gas as a payment method for the operation of the EVM could result in infinitely complex calculations that could cause the network to crash due to overload. As a result, gas in Ethereum serves as a safeguard against blockchain intruders and attacks.

Where is EVM used?

Despite the fact that many crypto projects use their own virtual machines, the Ethereum blockchain is not the only platform that uses EVM. Here are some blockchain platforms that make use of Ethereum Foundation developments:

  • Ethereum Classic. A platform for creating and executing smart contracts based on the Proof-of-Work consensus algorithm.
  • VeСhain. A blockchain built on the Proof-of-Authority consensus mechanism.
  • Fantom. A platform for smart contracts using a directed acyclic graph (DAG), fully compatible with EVM.
  • Polygon. A network of protocols and blockchains deployed on top of Ethereum.

EVM-compatible blockchains

The Ethereum virtual machine has a number of drawbacks, including high data storage costs, limited scalability, high gas prices during Ethereum network congestion, and significant programming limitations.

EVM-compatible networks, which use a code execution environment similar to the Ethereum virtual machine but have much cheaper transactions due to special scaling solutions, can act as a solution to these problems. This enables Ethereum ecosystem developers to migrate to more scalable blockchains without having to rewrite smart contracts from scratch.

One group of such solutions is called sidechains (вставить ссылку). They can use a separate blockchain with their own consensus algorithm and block creation parameters, but an EVM-compatible virtual machine. Matic (Polygon PoS), Gnosis Chain, and Loom Network are examples of Ethereum sidechains.

Another option is second — level solutions (Layer 2) based on Rollups technology. The Optimism platform, which employs the Optimistic Rollups protocol, is one example of an L2 project. The EVM controls smart contracts in this blockchain, and the roll-up protocol performs calculations and stores contract status in a separate Optimistic Virtual Machine.

The development of Ethereum Virtual Machine (EVM)

A number of major updates should occur in Ethereum over the next few years, the first of which should be The Merge — the transition of the blockchain to a new Proof-of-Stake consensus algorithm.

In July 2022, Vitalik Buterin presented a phased plan for the development of the Ethereum blockchain. One of these major stages should be the transition from the Ethereum Virtual Machine to the Ethereum WebAssembly virtual machine (eWASM).

  Source: Twitter


Although there is no final and comprehensive documentation for eWASM, the developers highlight its following advantages:

Over the next few years, a number of major updates should take place in Ethereum, the first of which should be The Merge — the transition of the blockchain to a new Proof-of-Stake consensus algorithm.

  • The speed of execution of smart contracts, close to the native;
  • The ability to develop contracts in many popular languages, including C, C++, and Rust;
  • Access to a huge community of developers and Web Assembly tools.
EVM Ethereum
Comments

All Comments

Recommended for you

  • BTC Surpasses $64,000

    Market data shows that BTC has surpassed $64,000, currently priced at $64,000.4, with a 24-hour increase of 0.29%. Due to significant market fluctuations, please ensure proper risk management.

  • US Spot Bitcoin ETF Sees Net Outflow of $61.1 Million Yesterday

    On August 13, according to monitoring data from Farside Investors, the US spot Bitcoin ETF experienced a net outflow of $61.1 million yesterday.

  • US Spot Ethereum ETF Sees $7.4 Million Net Inflow Yesterday

    On August 13, according to data monitored by Farside Investors, the US spot Ethereum ETF recorded a net inflow of $7.4 million yesterday.

  • CFTC Warns Prediction Markets: Trader Incentive Programs May Encourage False Trading and Market Manipulation

    On August 13, the U.S. Commodity Futures Trading Commission (CFTC) Market Oversight Division issued a regulatory advisory reminding designated contract markets (DCM) of their regulatory obligations when self-certifying market maker, liquidity, trading, or incentive programs under CFTC Rules 40.5 and 40.6. The advisory addresses the increasing number of incentive program rule filings submitted under CFTC Rule 40.6(a), particularly those related to event contract products. The CFTC noted that some of these filings contain procedural or substantive deficiencies. These deficiencies may hinder staff's ability to assess whether the DCM has adequately notified the terms of the programs and whether it has sufficiently evaluated the compliance of the relevant programs with core principles and other regulatory requirements of the Commission. The guidance clarifies staff expectations regarding the procedural and substantive requirements when submitting materials under CFTC Rules 40.5 and 40.6, including initial submissions of incentive programs, amendments or changes to relevant programs, and submission procedures.

  • Metaplanet CEO: Transfer of 5,014 BTC Between Custodial Addresses is Routine, No Sale Made

    On August 13, Cointelegraph reported that Metaplanet CEO Simon Gerovich stated that the company's transfer of 5,014 BTC between custodial addresses is a routine operation. He emphasized, 'No Bitcoin has been sold, and the company's holdings remain at 43,000 BTC.'

  • Bullish Sentiment in Bond Market Rises as 10-Year Treasury Yield Falls Below 1.7%

    On August 13, the domestic bond market has seen a continued rise in bullish sentiment, with long-term rates experiencing a significant breakthrough. Market data shows that after fluctuating around 1.7% for several days, the yield on the 10-year Treasury bond fell below the 1.7% mark again on August 12, closing at 1.694%. Meanwhile, the yield on the 30-year Treasury bond also declined, closing at 2.160%, marking a low for the year. Industry insiders believe that the current bond market trend is driven by multiple factors including expectations of loose monetary policy, a balanced and relaxed funding environment, and institutional investors increasing their positions. However, after the key level was breached, the market's bullish and bearish dynamics intensified, and the effective conditions for a sustained downward trend in interest rates still need further validation.

  • NVIDIA Shares Rise Over 3%

    On August 12, NVIDIA's stock price increased by 3.35%, reaching $224.80 per share, the highest level in two months, with a total market capitalization of $5.44 trillion.

  • Trump: The U.S. Has Complete Control Over the Strait of Hormuz

    On August 12, U.S. President Trump posted: "The United States has complete control over the Strait of Hormuz. I believe we will continue to maintain that control! Our maritime blockade is referred to by everyone as a 'steel wall,' and Iran is powerless against it. They have no navy, no air force, and their remaining soldiers have not been paid. The Revolutionary Guard has been severely damaged and is in retreat, while their 'leadership' can at best be described as uncertain! They have no funds—this country is already 'full of holes.' All they have are fake news and 300% inflation, and the situation is worsening! Iran is now just talk without action, no longer the bully of the Middle East!"

  • Semiconductor Equipment Sector Continues Uptrend, Aehr Test Systems Rises Over 11%

    On August 12, the semiconductor equipment sector continued its upward trend, with Aehr Test Systems rising over 11%. Teradyne increased by over 6%, while Lam Research, Ichor Holdings, and Applied Materials each rose over 4%. KLA gained over 3%, and ASML and Ambarella both rose over 1%. In news, Aehr Test Systems announced a follow-up mass production order worth $22 million from its leading wafer-level AI processor customer. In industry news, Bernstein released a research report raising its forecast for wafer fabrication equipment (WFE) spending, citing increased confidence in the ongoing upcycle. The firm raised its 2026 WFE spending forecast to $148 billion, a 26.3% year-on-year increase; the 2027 forecast was raised to $204 billion, a 32.6% year-on-year increase; and the 2028 forecast was raised to $259 billion, a 27% year-on-year increase.

  • Lightspeed Plans to Raise $600 Million for Secondary Fund to Invest in OpenAI and Anthropic

    On August 12, Bloomberg reported that Lightspeed Venture Partners is seeking to raise approximately $600 million through secondary transactions to extend its investment exposure to OpenAI and other artificial intelligence companies, as well as to increase its investment in AI model company Anthropic. According to insiders, this fundraising effort is internally codenamed 'Project Mercury' and involves multiple secondary funds under Lightspeed, including the Select V Fund, Opportunity II Fund, and certain assets in a separately managed account. Lightspeed aims to provide liquidity to investors through secondary market transactions while maintaining long-term holdings in leading companies in the AI sector.

Daily Must-Read

Popular Activities

RaveDAO at Terra Solis by Tomorrowland: A Female-Led Techno Night Where Web3 Culture Converges

RaveDAO at Terra Solis by Tomorrowland: A Female-Led Techno Night Where Web3 Culture Converges

April 30 - April 30
Dubai

Popular Tags

Cointime
News
Contents
RSS
Company