When exploring the world of blockchain technology, we’re going to pass by a magical tool known as the Ethereum Virtual Machine (EVM).
As a decentralized computer or to make it easier as a software program on the Ethereum Blockchain, the EVM have the important role and responsibility of executing smart contracts and running the decentralized applications (DApps).
The idea of EVM is not that easy to understand for all of us since it’s a technical concept and we need to know more about some specific points to make it easier.
Let’s start by taking a quick view on the Ethereum Blockchain.
Ethereum is a system that adopts the principle of decentralization with open source blockchain framework, and it has its own cryptocurrency... the Ether (ETH).
Ethereum is the land of numerous other cryptocurrencies same as executing decentralized smart contracts.
This project became one of the most important blockchain platforms in the world being the second one after Bitcoin, resulting to be used by developers to create a big range of Decentralized applications (Dapps), decentralized Finance (DeFi), Decentralized exchanges (DEXs) and non-fungible tokens (NFTs)
Smart contracts being self-executed computer programs built on blockchain, they are essentially made to facilitate and verify an agreement without the need of third party, so it’s way different than the traditional contracts that need manual intervention.
Smart contracts action will take place once certain conditions are met, providing transparency, security and immutability.
Once deployed the smart contract cannot be changed and that what ensures trust and eliminate the need for an intermediary and even for the central authorities.
After understanding some of the main key words now let’s solve the enigma!
The Ethereum Virtual Machine (EVM) is a not a physical device that can be located in a certain place, instead it exists as a conceptual entity that is maintained and operated by a network of thousands of interconnected computers.
These computers are participated in the Ethereum network and execute the EVM’s instructions.
So, the EVM is spread across numerous nodes or computers in the network, where each of these nodes will keep a copy of the EVM and contributes to its operation and consensus.
These computers need to work together to ensure the functionality and continuity of the EVM.
Now let’s add another point here about the Ethereum protocol, where it serves as the underlying framework and infrastructure that ensures the consistent functioning of Ethereum.
The protocols primary objective is to make sure that the operations of a certain state machine will not be interrupted and fixed. As for the state machine being an abstract mathematical model used to describe the behavior of a system, it will refer to the collective state of all Ethereum accounts and smart contracts.
Moreover, in the Ethereum network, every block in the blockchain represents a specific point in time.
At any given block, there exists only one definitive and authoritative state, known as the 'canonical' state. This canonical state represents the current snapshot of all account balances, contract code, and storage across the entire network.
Got the point? If you’re not into computer science don’t hate me but…
Let’s explain more!
When we say “Canocical” state in Blokchain we mean by that the the agreed-upon and definitive snapshot of all the information stored on the blockchain at a specific point in time.
Let’s think of the “canonical” state as a shared database, where it shows the real-time state of all accounts and contracts. And this is essential to ensure that everyone is on the same page and can trust the information stored on the blockchain.
This concept is important because it ensures that all transactions and smart contracts are executed based on a reliable and consistent foundation, also it guarantees the integrity and reliability of the blockchain's data, making it a trusted source for decentralized applications and financial activities on the network.
Why have we explained about the “canonical” state?
Simply because The EVM plays a crucial role in maintaining and evolving the “canonical” state.
It defines the rules and instructions for computing a new valid state as the blockchain progresses from one block to the next.
It processes and executes smart contracts, updates account balances, modifies contract storage, and ensures consistency and integrity within the Ethereum ecosystem.
So, let’s say that the EVM is the engine that supports the rules for computing and updating the canonical state as the blockchain advances from block to block, thereby maintaining the integrity and functionality of the Ethereum accounts and smart contracts.
After all the mentioned above we can find now that The EVM is a key part of the Ethereum ecosystem, and it is essential for the security and functionality of the blockchain.
As the Ethereum ecosystem evolves, developers and researchers are actively working on refining the EVM to introduce new features.
These updates can include protocol upgrades, bug fixes, performance enhancements, and the introduction of new opcodes or instructions.
So, the EVM is constantly being updated to improve its functionality and performance.
Why would anyone use the EVM?
Let’s talk about the Ethereum Virtual Machine’s benefits, for the EVM having decentralized nature so it’s not controlled by a single entity this will only make it more difficult to be exposed to hacks or attacks, so it will guarantee the security.
Also, the EVM is designed in a way to handle a bug number of transactions without slowing down.
The nice thing about EVM is that it’s even compatible with various blockchains, enabling developers to build applications that can function across multiple blockchain networks.
Due to its flexibility, the EVM has become a main partner for executing smart contracts and running decentralized applications. (Dapps).
It’s right that it was initially developed for the Ethereum blockchain, but now it’s extended way beyond Ethereum itself.
Several other blockchains have already implemented their own versions of the EVM or even developed compatibility layers that allow them to support EVM-based applications.
This compatibility means that developers can create applications using EVM-compatible programming languages and frameworks, and these applications can be deployed and run on different blockchain networks that support the EVM.
By using the EVM's compatibility, developers gain the ability to reach a broader audience and tap into the user base of multiple blockchains.
So, they will be able to build applications only once and then deploy them on various EVM-compatible blockchains without needing to rewrite or modify the core logic of their code.
This will facilitate the cross-chain deployment of applications and promotes greater flexibility and accessibility in the blockchain ecosystem.
Always and like all concepts and projects they have different challenges that will face their trip.
The first and the most important point here is the complexity of the EVM, it’s a complicated and sophisticated system, which can present challenges when it comes to acquiring knowledge and proficiency in its usage.
Since it operates based on a unique set of rules and instructions that will make it a complex software infrastructure to grasp and work with effectively.
Due to its complexity, understanding and mastering the plots of the EVM may require a significant learning curve.
Developers and users who wish to utilize the EVM for building and interacting with smart contracts need to invest time and effort in acquiring the necessary knowledge and skills.
Learning how to use the EVM involves familiarizing oneself with its underlying architecture, programming languages such as Solidity, and the various tools and frameworks available for developing on the Ethereum platform.
It also entails understanding the fundamental concepts of blockchain technology, consensus mechanisms, and decentralized computing.
And for sure don’t forget to stay up to date with the evolving nature of the EVM and its associated technologies since it’s really crucial, as updates, improvements, and new features are regularly introduced to enhance its functionality and security.
Another point which is the cost, where the EVM operates on a proof-of-work (PoW) consensus mechanism, which entails a significant energy requirement. Hence utilizing the EVM can be financially demanding. But how come?
The energy-intensive nature of the EVM's (PoW) mechanism translates into costs associated with electricity consumption. Since miners need powerful hardware and dedicated resources to participate in the mining process, leading to high electricity bills and operational expenses. These costs can be especially significant in regions where electricity prices are high or in situations where the mining operation scales up.
Moreover, the cost of using the EVM go beyond mining.
It’s more about paying transaction fees or the gas fees when interacting with the Ethereum blockchain. Noting that when there is a high network traffic or if there’s lower demand these fees can rise, making it even more costly to run operations in the EVM.
One more point which is the security, yep, the EVM is highly secured to its decentralized nature, but we should not forget that there have been a number of security breaches on Ethereum, and it is important to be aware of the risks before using the EVM.
Overall, the EVM is a hidden gem with a lot of potentials, beside that the continuous enhancements are making it even more powerful, and the demand will keep increasing on using this machine, and it is more likely to play an even more important role in the future of decentralized applications.