• Ethereum’s computational core: The Ethereum Virtual Machine (EVM)  runs smart contracts and dApps on Ethereum and other EVM-compatible blockchains
• Battle-tested benefits: The EVM connects multiple chains, ensuring consistent security standards, cryptographic capabilities, and transaction execution methods.
• EVM beyond Ethereum: There are different levels of EVM compatibility, which affect each chain’s interoperability and developmental requirements.

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What is the Ethereum Virtual Machine?

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The Ethereum Virtual Machine (EVM) is the computational core of Ethereum and its compatible blockchains. In essence, it is a virtual environment that is designed to run smart contracts and decentralized applications (dApps).

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There are many different blockchains, and not all of them operate the same way. This often makes it difficult for different chains to interact with one another. But chains that rely on the EVM to operate are capable of interacting with one another in some capacity, which means the EVM plays a big role in connecting different parts of today’s blockchain ecosystem.

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Think of it as a global, decentralized computer that allows developers to build and deploy an ever-growing array of web3 applications without downtime or third-party interference, under a shared technical standard.

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Why is the EVM Important?

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The EVM's significance can't be overstated. It standardizes how smart contracts are executed across Ethereum and EVM-compatible blockchains, which account for sizable share of today’s crypto market.

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This uniformity ensures that all nodes agree on the outcome of transactions and the blockchain's state, resulting in a more secure and connected on-chain ecosystem.

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More specifically, the main benefits of EVM include:

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• Cross-chain Interoperability: The EVM is a game-changer for cross-chain compatibility. It allows applications on Ethereum to seamlessly interact with other EVM-compatible networks and vice versa, as they are executed and accessed across different chains.
• Network Scalability: The EVM spreads smart contract execution across multiple chains. This approach eases the load on the Ethereum mainnet, improving performance and preventing the mainnet from becoming a bottleneck.
• Developer Accessibility: The EVM introduces set standards to the vast web3 space. This makes it easier for developers to plug into or build across different ecosystems using well-tested libraries and tools, without the need to master new programming languages.
• Battle-tested Security: The EVM’s established protocols come loaded with cryptographic capabilities like hashing, digital signatures, and more. These built-in features help ensure data integrity and authenticity across smart contract executions.‍

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How Does the EVM Work?

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The EVM relies on a decentralized network of nodes to help it execute smart contracts, validate transactions, and maintain the blockchain's state.

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Here’s a quick overview of how it works:

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1. Code Compilation: The EVM processes instructions that are provided in bytecode, a low-level, stack-based language that is the output of high-level languages like Solidity and Vyper. Whenever a smart contract is deployed, its code is compiled into this bytecode, which the EVM can then execute.
2. Contract Deployment: The compiled bytecode is deployed to the EVM blockchain, creating a smart contract that is stored on the network and assigned a unique address.
3. Transaction Execution: When a user interacts with a smart contract, the EVM executes the contract's bytecode. This involves processing data using a stack-based architecture, where data is stored and executed in a verifiably “correct” sequence.
4. Gas Computation: Gas represents the computational effort required to execute an operation, such as a token swap or smart contract execution. Users must provide enough gas to cover an operation’s on-chain execution costs.
5. State Changes: The state machine is responsible for maintaining the state of all accounts, balances, and smart contracts on an EVM blockchain. Each on-chain transaction leads to a state transition, which updates the blockchain and ensures all nodes maintain a consistent reference of what has occurred on-chain.

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Together, these components enable the EVM to execute dApps and smart contracts securely and efficiently.

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The gas mechanism serves as both a resource management tool and a protective measure against potential cyberattacks, while the stack-based execution and state machine ensure accurate and consistent transaction processing.

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The EVM Beyond Ethereum

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The EVM was originally designed for smart contracts and dApps on the Ethereum mainnet. However, the EVM has since become a standard in the blockchain world, with many other networks adopting or adapting it to their own systems.

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This has resulted in multiple EVM-compatible blockchains, which are designed to be compatible with Ethereum-based smart contracts and dApps to some extent. Different chains have different levels of EVM compatibility, which influences how seamlessly these systems integrate with Ethereum and each other.

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These chains fall into one of three general categories:

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• Full Compatibility: Blockchains that have implemented the EVM in its entirety, ensuring complete compatibility with Ethereum. This means smart contracts and dApps developed for Ethereum can run on these chains without any additional changes.
• Partial Compatibility: Blockchains that deploy some form of EVM with minor modifications or additional features that might require developers to tweak their Ethereum-based smart contracts. These adaptations can include changes in consensus mechanisms, block sizes, or gas pricing models.
• EVM-Compatible Languages: Some blockchains do not use the EVM but are compatible with Ethereum smart contract languages like Solidity. While these chains are not technically “EVM compatible”, their infrastructural overlap makes it easier for developers to port over their EVM applications after some code modifications.

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EVM's operational dynamics are consistent across different blockchains, but the level of interoperability, native gas token, and underlying infrastructure depend on the network in question.

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And even if a chain isn’t strictly EVM compatible, as long as it shares a common coding language with an EVM chain it can still interact with the broader EVM ecosystem —with a little extra work.

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Closing Thoughts

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The Ethereum Virtual Machine is a cornerstone of today’s blockchain landscape, enabling the development and execution of smart contracts and dApps within a secure, multichain environment. While there are varying degrees of EVM compatibility among today’s leading chains, the industry standards set by the EVM help unify much of today’s web3 landscape.

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This increased interoperability and accessibility ultimately benefits developers and crypto users alike, and will continue to play a key role in future blockchain deployments.

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