Ethereum is still the most preferred blockchain for developers. The slower transaction speed and high gas fees haven’t impacted the demand for Ethereum. The maturity of the Ethereum ecosystem acts as a trust factor for the developers. In addition, Ethereum provides a variety of development resources and tools. Crypto space has witnessed the emergence of various new blockchain ecosystems in recent years. But still, the Ethereum ecosystem leads with a market capitalization of over $368 billion. Having understood the demand for the Ethereum blockchain, let’s dive into EVM.
Introduction to EVM
An Ethereum virtual machine (EVM) is a virtual computer that allows the development of decentralized applications (DApps). Moreover, developers use this virtual machine to deploy and execute Ethereum smart contracts. A smart contract can be defined as a computer program that functions on the Ethereum blockchain. Smart contracts execute their functions automatically based on the agreement between users. With the help of smart contracts, you can set specific rules or conditions. As soon as it meets your conditions, the contract will be executed. It’s important to understand two significant concepts of the EVM; Virtual Machine and Turing Completeness.
Virtual Machines
Virtual machines consist of programs used to simulate a computer’s behavior. These virtual machines themselves act as processing and storage units. The virtual machines function the same as our computer software. Unlike our computers, virtual machines are capable of performing complex functions.
Turing Completeness
Named after British mathematician Alan Turing, Turing Completeness ensures that the machine can run any calculation. With enough memory and time, a Turing-complete machine can execute any complex computation. Put together, EVM is a virtual machine with Turing completeness. This technological combination acts as a blessing for DApp developers. EVM also ensures the security of the Ethereum blockchain. In addition, complex calculations are executed quickly. EVM is installed on the operating system for faster execution. Moreover, this virtual machine is a middle layer between the operating system and the smart contract.
Purpose of EVM
The primary purpose of an EVM is to power DApps. Moreover, this virtual machine also restricts major interruptions in the Ethereum network. As mentioned earlier, developers deploy smart contracts to execute functions on the blockchain network. These smart contracts and DApps are converted to bytecode. Bytecode is a computer language compiled from source code to run on a virtual machine. This language is in a computer-readable format. Upon completing the conversion, the bytecodes are deployed into EVM. Finally, these deployed codes are distributed to all nodes present in the Ethereum network. Apart from bytecode, EVM also utilizes “opcodes,” a series of instructions. This set of instructions helps EVM in executing multiple tasks. More than 140 opcodes are used to enable different types of EVM processes. Simply put, opcodes simplify the programming instructions for EVM. EVM plays a crucial role in ensuring that every smart contract functions correctly. Furthermore, transaction data is updated in the Ethereum network.
Gas and Its Impact on EVM’s Performance
Gas can be considered as the fuel of EVM. It represents the fees required to compute the operations of Ethereum smart contracts. The gas depends on the complexity of the opcode. The gas is paid in Wei, the smallest fraction of Ether(ETH). Gas also plays a crucial role in the safety of Ethereum networks. In other words, the expensive fees safeguard the network from attackers. The validators of the transactions receive the gas as a reward—also, the increase in complexity results in higher rewards. The gas mechanism also helps validators filter the big and small fees required. For instance, validators can select difficult opcodes to obtain higher gas. The network activity highly influences gas fees. Also, the sender receives the unconsumed gas left after the transaction. As you understand the importance of gas, let’s look at EVM’s data storage process.
Data Storage in EVM
As you know, data is the most valuable resource. Therefore, data storage is an essential part of EVM. First, let’s understand how data is stored in Ethereum. Ethereum stores data in the form of tire data structures. With the help of these data structures, Ethereum manages permanent and temporary data. Ethereum blockchain consists of three types of tries:
State Trie: Global State Trie is the only state trie of Ethereum, which gets updated constantly. This trie consists of a value and key for every Ethereum account. Storage Trie: Contract data is stored here. As a result, this trie exists on every Ethereum account. Transaction Trie: This trie stores all transactions on every block. You can use this trie to locate specific transactions.
The simple data division distributed across three tries aids Ethereum in storing and managing massive amounts of data. In addition, this data store mechanism provides users with easier and safer access. In the case of EVM, there are two data types of Ethereum protocols: ephemeral and permanent data.
Ephemeral Data: This data changes according to new transactions, like a wallet balance. Permanent Data: As the name indicates, this data is stored permanently in Ethereum’s data structure. Moreover, this data can’t be changed or modified.
You might have noticed some interesting similarities between the EVM and CPU of your computing device. Ethereum developers create DApps that are similar to computer software. The difference here is that, unlike C++ or Java, Solidity is the programming language of Ethereum. This solidity code is then distributed among other nodes/systems. Like our computers, EVM doesn’t have a physical CPU. In other words, EVM is a virtual CPU distributed across worldwide networks.
Benefits of EVM
Let’s have a look at the advantages of EVM:
Decentralization
EVM plays an essential role in restricting the role of any central authority. No one can control the transactions taking place on the Ethereum network. In addition, no one can remove deployed DApps. This provides the developers with the freedom to build innovative projects.
Low Entry Barriers
EVM helps developers create DApps without any restrictions. This virtual machine allows developers to create and deploy smart contracts that suit their purposes.
Ease of Executing Complex Smart Contracts
The EVM is capable of executing complex tasks assigned in smart contracts. In addition, developers can create a smart contract and run it on multiple platforms.
Foolproof
The complex mechanism of EVM allows the program to execute transactions without failure. Here, the developer can handle the impact of the smart contract based on its complexity.
Data Safety
EVM safeguards the developer’s data. This trust factor encourages developers to test different types of codes. In the case of using untrusted code, the personal data stays unaffected. The computation process also doesn’t affect other system functions.
Drawbacks of EVM
High Gas Cost
You need to pay fees in ETH tokens to execute transactions. The gas required depends on the complexity associated with the execution of the transaction. Moreover, the transaction type and speed also determine the gas. You can use online calculators to find the gas required for a transaction. The gas will increase when there is high network congestion—situations like these result in very high gas fees.
High Data Storage
As we discussed earlier, data is a crucial part of the EVM. Data storage and management are essential for the proper functioning of the machine. Here also, the complexity of a transaction leads to high data storage. Similar to gas fees, storage fees can also be expensive at times.
Requires Technical Knowledge
It’s impossible to change a deployed smart contract. Therefore, the developer who creates smart contracts must have technical expertise. As a Turing complete system, EVM allows developers to use any programming language. In contrast, a bad programming script can ruin the entire project.
Future of EVM
While we consider blockchain technology and EVMs, it’s at an early stage. In the coming years, the speed and efficiency of EVM will increase. The transaction speed and high gas fees are a huge challenge. Overcoming these challenges will brighten the future of EVM. EVM will be a crucial part of decentralizing major industries. The transformation will create an impact on major industries. Banking, gaming, cybersecurity, logistics, health care, cloud storage, and real estate industries will significantly transform. In addition, more useful DApps will make people’s lives easier. Ethereum founder Vitalik Buterin’s vision to flourish a multi-rollup ecosystem also impacts EVM positively. The implementation of this ecosystem increases the EVM functionality. The interoperability function is another significant change that will impact the EVM. Here, DApps on different blockchains can interact with each other. The interactive operation features encourage collaboration among different crypto projects. In addition, more developers tend to choose EVM to deploy their smart contracts.
Author’s Note
Ethereum Virtual Machines play an important role in providing a decentralized ecosystem. DApp developers are now getting more access to build their projects. Developers are approaching Ethereum as an all-in-one platform for DApp development. This factor makes EVM’s future a promising one. Ethereum Virtual Machines are not perfect and have some disadvantages. With the advancement of technology, EVM keeps evolving into a better version. Next, you can explore the best Ethereum wallets.
