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EVM

The EVM is the virtual computer of Ethereum. It runs transactions and smart contracts on the blockchain.

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What is the EVM?

EVM stands for Ethereum Virtual Machine. A virtual machine is a computer system that exists digitally, rather than as a single physical computer in one fixed location.

The EVM is shared by many nodes. These are computers that help run the Ethereum network. This means that no single party can decide what happens on its own.

A smart contract is a program on the blockchain that automatically carries out agreed-upon steps. The EVM reads the code in a smart contract and runs it. It also keeps track of data, such as transaction results and how tokens are distributed among wallets.

A simple example of the EVM

Suppose you press a button in a crypto app to use a function in a smart contract. You then send a transaction to the address of that contract.

The EVM reads which function you want to use and runs the corresponding code. You pay gas fees in ETH for this computing power. More complex actions may require more gas.

Why is the EVM important in crypto?

The EVM lets developers build apps that aren’t controlled by a single company. These apps are called dApps. The EVM also helps nodes verify the same transactions and results.

In crypto news, you’ll often see the term used with Ethereum, new dApps, or blockchains that are EVM-compatible. This means they support the EVM, allowing Ethereum smart contracts to work on them.

The EVM doesn’t automatically make a smart contract error-free or secure. Errors in a smart contract’s code can lead to bugs or make it possible to exploit the contract.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.