Crypto Glossary: Ethereum Virtual Machine (EVM)
Ethereum Virtual Machine (EVM): The Ethereum Virtual Machine, abbreviated as EVM, serves as a crucial component within the Ethereum blockchain network. It functions as a decentralized computation engine, akin to a virtual computer with the capability to execute smart contracts.
Computation Engine: As a computation engine, the EVM acts as a decentralized computer with the capacity to handle millions of executable projects. It is integral to Ethereum’s operating structure, running the execution and deployment of smart contracts on the blockchain.
Execution and Smart Contract Deployment: The primary role of the EVM is to deploy additional functionalities to the Ethereum Blockchain, ensuring a seamless user experience on the distributed ledger. It plays a pivotal role in executing and deploying smart contracts, enhancing the capabilities of the Ethereum network.
Consensus Maintenance: Every Ethereum node incorporates the EVM, contributing to the maintenance of consensus across the blockchain. This decentralized approach ensures that all nodes consistently execute smart contracts, upholding the decentralized nature of the Ethereum network.
Isolation and Account Types: The EVM operates in isolation, meaning the code within it has no access to the network, file system, or other processes. Ethereum features two types of accounts: Externally Owned Accounts (EOA) controlled by private keys, and Contract Accounts stored in smart contracts, also known as smart wallets. Account abstraction aims to treat both account types equally, simplifying the Ethereum account structure.
Smart Contracts and Bytecode: Smart contracts, written in languages like Solidity, are executed in the EVM’s virtual runtime environment. The EVM converts the smart contract code into bytecode, a readable format for execution. Solidity is a primary programming language for creating smart contracts, and its source code is transformed into opcodes interpreted by the EVM to perform various tasks on the blockchain.
Task Execution: The EVM, functioning as a decentralized master computer, executes a wide range of tasks on the blockchain. It interprets operation codes (opcodes) derived from smart contract code to achieve consensus and carry out actions on the Ethereum network.
Decentralization Significance: The EVM’s widespread usage and adoption underscore its significance in the realm of cryptocurrencies. Its role in executing smart contracts and maintaining decentralized consensus positions it as one of the cornerstone projects within the cryptocurrency world.