What is Ethereum Virtual Machine and How Does It Work?

What is Ethereum Virtual Machine?

The Ethereum Virtual Machine (EVM) is the period of the environment for smart contracts on the Ethereum network. It is a virtual machine that runs on each node in the Ethereum network and executes the bytecode of the smart contract. In this way, the EVM enables the execution of decentralized applications (Dapps) on the Ethereum network.

How Does It Work?

The EVM was designed to be a Turing-complete virtual machine, which means that it can execute any program that can be written in a programming language. This makes it possible to create complex smart contracts that can perform a wide range of functions, such as executing financial transactions, managing digital assets, and enforcing complex business logic.

The Ethereum environment includes the Ethereum Virtual Machine (EVM), which is a runtime environment that executes smart contracts written in programming languages such as Solidity, Vyper, and more. The Ethereum environment also supports the creation of non-fungible tokens (NFTs), which are unique digital assets that can be bought, sold, and traded on the Ethereum blockchain.

NFTs have gained popularity in recent years for their use in digital art, gaming, and other applications. Overall, the Ethereum environment provides a powerful platform for creating decentralized applications, executing smart contracts, and enabling the creation and exchange of digital assets on a global scale.

EVM as an Integral Part of the Ethereum Blockchain

The EVM is an integral part of the Ethereum blockchain, and it is responsible for executing the bytecode of each smart contract that is deployed to the network.

When a user deploys a smart contract to the Ethereum network, the bytecode is distributed to every node in the network, and each node executes the bytecode in the Ethereum Virtual Machine. This ensures that the smart contract executes in a deterministic way across the entire network and that the results are consistent and predictable.

The EVM is also responsible for managing the state of the Ethereum network. The state of the network is represented by a global state tree, which is a data structure that tracks the current state of all accounts and smart contracts on the network.

Each node in the network maintains its copy of the state tree and updates it as new transactions are executed in the Ethereum Virtual Machine. This ensures that the state of the network remains consistent across all nodes in the network.

Gas System

One of the key features of the Ethereum Virtual Machine is its gas system. Gas is a unit of measurement that represents the computational resources required to execute a transaction or a smart contract on the network.

Each transaction or smart contract execution in the Ethereum Virtual Machine requires a certain amount of gas, which must be paid for by the user who initiates the transaction. The gas price is determined by the market, and it is paid in ether (the native cryptocurrency of the Ethereum network).

Significance of EVM

The gas system serves two important purposes. First, it ensures that the network remains secure and efficient by preventing spam attacks and resource exhaustion. Second, it incentivizes efficient code and discourages wasteful or malicious code, since the cost of execution is borne by the user who initiates the transaction.

In addition to its role as a virtual machine for executing smart contracts, the EVM also serves as a platform for developing and testing new blockchain technologies. Since the EVM is an open and decentralized platform, developers can experiment with new ideas and applications without worrying about the costs and risks associated with deploying their blockchain.


In short, the EVM is a critical component of the Ethereum ecosystem. It enables the execution of smart contracts on the network, manages the state of the network, and provides a platform for developers to experiment with new blockchain technologies. By combining the power of decentralized computing with the flexibility of a Turing-complete virtual machine, the EVM has opened up a new world of possibilities for decentralized applications and blockchain innovation.