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Ethereum Virtual Machine: Explained
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In Brief
Discover the Ethereum Virtual Machine (EVM): its workings, significance, and effect on smart contracts and decentralized applications.
The Ethereum Virtual Machine (EVM) is a critical component of the Ethereum blockchain. EVM acts as the decentralized computer that enables smart contracts and decentralized applications (dApps) to function. Understanding EVM is essential for anyone interested in Ethereum development, blockchain technology, or decentralized finance (DeFi). This article provides a high-level overview of EVM, how it works, and why it is important.
Before We Continue
Before we continue discussing the Ethereum Virtual Machine, remember that Trust Wallet - a secure, self-custody crypto wallet - supports 10M+ assets across 100+ blockchains including Ethereum’s native currency ETH. You can buy, sell, swap, transfer, and earn crypto all in one place.
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What is the Ethereum Virtual Machine?
The Ethereum Virtual Machine (EVM) is a sophisticated, decentralized computational environment that forms the core of the Ethereum blockchain ecosystem. As a Turing-complete, software-based virtual machine, EVM serves as the runtime environment for smart contracts. EVM effectively functions as a vast, distributed computer that executes code across a network of nodes.
Operating as a closed system, EVM can only access and modify its state. This ensures isolation that guarantees security and determinism in contract execution. This design is important for maintaining the integrity of a blockchain-based world computer.
EVM's primary function is to execute smart contracts consistently and securely across all Ethereum nodes. EVM uses a concept called "gas" to measure and allocate computational resources, promoting efficiency and safeguarding the network against potential attacks or resource exhaustion.
Beyond cryptocurrency transactions, Ethereum's power lies in its ability to support complex smart contracts. This functionality transforms Ethereum from a distributed ledger into a distributed state machine. The Ethereum state is a comprehensive data structure that tracks accounts and maintains a machine state capable of changing from block to block, according to predefined rules.
This machine state can execute arbitrary code. EVM defines the specific rules for state changes between blocks. This design enables Ethereum to function as a global, decentralized computer, capable of running complex applications and enabling a wide range of innovative use cases beyond simple value transfer.
How EVM Works
To understand how EVM works, it's important to break down its key components and processes:
Bytecode Execution
EVM operates on a stack-based architecture with a 256-bit word size, enabling efficient native hashing and elliptic curve operations for secure fund management. It supports various programming languages, with Solidity being the most popular for smart contracts. These high-level languages are compiled into bytecode, which is stored on-chain as runtime bytecode. EVM then converts this bytecode into opcodes, which it interprets and executes to perform a smart contract's functions. This process enables complex smart contracts to run securely and consistently across the Ethereum network.
Gas and Computation
Every operation in EVM consumes a predetermined amount of "gas," which is a measure of computational effort. Gas serves two primary purposes:
Gas prevents infinite loops and other resource-intensive computations that could potentially crash the network.
Gas fees incentivizes efficient code writing, as users must pay for the gas their contracts consume.
State Management
EVM maintains the global state of the Ethereum network, which includes all account balances, contract codes, and storage. Every transaction modifies this state, and EVM ensures that all nodes in the network reach a consensus on the new state after each block of transactions.
Memory and Storage
EVM uses different types of memory:
Stack: A last-in-first-out data structure for storing small local values.
Memory: A byte-addressable space for storing temporary data during contract execution.
Storage: A key-value store that persists between function calls and transactions. This is where contract state variables are stored.
Message Calls
Contracts can communicate with each other through message calls. These calls can transfer Ether, pass data, and even execute code in other contracts, enabling complex, interconnected systems of smart contracts.
Why is EVM Important?
Decentralized Applications (DApps): EVM enables the creation and execution of decentralized applications. DApps can range from simple token transfers to complex financial instruments, all running on a global, censorship-resistant platform.
Smart contract innovation: By providing a standardized environment for executing code, EVM has enabled innovation in smart contract development. Developers can create and deploy contracts with confidence, knowing they'll behave consistently across the entire Ethereum network.
Interoperability: EVM's standardized bytecode format enables interoperability between different high-level languages. A contract written in Solidity can interact seamlessly with one written in Vyper or any other EVM-compatible language.
Security and determinism: EVM's isolated execution environment and gas system provide important security features. They prevent malicious code from affecting the broader network and ensure that contract execution is deterministic.
Ecosystem Growth: EVM has been instrumental in the growth of the Ethereum ecosystem. It has enabled the development of a wide range of projects, from decentralized finance (DeFi) protocols to non-fungible token (NFT) marketplaces, all built on the same foundational technology.
EVM and Ethereum Wallets
While EVM operates at the core of Ethereum, most users interact with the network through Ethereum wallets. These wallets serve as the interface between users and EVM, enabling for several key functions:
Account management: Ethereum wallets manage user accounts, which are addresses on the Ethereum blockchain. These accounts can hold Ether and tokens, and they're the entry point for interacting with smart contracts.
Transaction signing: When a user wants to interact with a smart contract or send Ether, their wallet creates and signs the transaction. This signed transaction is then broadcast to the network and eventually processed by EVM.
Contract interaction: Advanced Ethereum wallets can interact directly with smart contracts, enabling users to call functions and execute complex operations without needing to understand the underlying EVM bytecode.
Gas management: Wallets often provide interfaces for users to set gas prices and limits for their transactions, helping to manage the costs associated with EVM computation.
How to Buy Ethereum (ETH) Using Trust Wallet
You can buy crypto, including Ethereum, using Trust Wallet, via our trusted partners. Here’s how:
Select “Buy” from the home screen.
Search for “Ethereum” or “ETH” and select it.
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Select the third-party provider & payment method you’d like to use.
Select the Buy button and complete the remaining steps.
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Conclusion
The Ethereum Virtual Machine stands as a testament to the power of decentralized computing. By providing a standardized environment for executing smart contracts, EVM has enabled a new era of blockchain applications and financial instruments. As Ethereum continues to evolve, EVM will undoubtedly play a central role in shaping the future of decentralized technologies.
Disclaimer: Content is for informational purposes and not investment advice. Web3 and crypto come with risk. Please do your own research with respect to interacting with any Web3 applications or crypto assets. View our terms of service.
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Note: Any cited numbers, figures, or illustrations are reported at the time of writing, and are subject to change.