The Ethereum Virtual Machine, or EVM, is the core driving force behind the Ethereum network, their open-source platform that has redefined the blockchain technology landscape. Although EVM only works on the Ethereum network, its importance extends far beyond its native network. Many blockchain networks currently want to be EVM compatible, mainly due to the potential ecosystem of developers and dApps.

This article explained the basic concept of EVM, its role within the Ethereum ecosystem, and its impact on blockchain and the world beyond.

Ethereum Virtual Machine Explained

The Ethereum Virtual Machine (EVM) plays an important role in creating an optimal environment for executing smart contracts and decentralized applications (DApps) on the Ethereum blockchain platform. It acts as a decentralized computer to manage the global network of Ethereum nodes. Ethereum’s EVM native programming language works to process and execute code written in Solidity or other compatible languages.

At the core of EVM is a Turing-complete and sandboxed execution environment. Theoretically Turing completeness means it can perform any computation, and it makes a versatile platform for building dApps. The sandboxed feature ensures that code execution is isolated and secure and prevents any spam code from infecting the entire network. Ethereum developers compile their smart contracts into bytecode that can be executed by the EVM and thus remain immutable once the code is placed on the blockchain.

Transactions Users and DApps interact with EVM by sending code containing executables to Ethereum addresses. These transactions enable the EVM to run code to read and write from the distributed ledger on the Ethereum blockchain, enabling the creation of decentralized applications useful for various tasks such as decentralized finance (DeFi), and non-fungible tokens (NFTs).

All nodes in the Ethereum network help reach consensus on state changes resulting from these transactions while maintaining integrity to ensure decentralized and deterministic execution of EVM and trustworthiness of the blockchain.

How EVM works

EVM operates on a stack-based architecture with 256-bit word form cryptographic operations optimized for hashing and elliptic curve calculations, which are essential for securing transactions. It interprets smart contracts written in languages ​​like Viper and Solidity and converts them to bytecode.

When making a transaction to execute a smart contract, the EVM is loaded with the transaction data, which includes a certain amount of gas fee that is reduced as the operation is completed. If the gas fee drops before the transaction is settled, the transaction is terminated and considered invalid, although the miner is paid a fee for computational effort up to that point.

A smart contract in an EVM can call other contracts. Each new call loads another EVM instance with the required data inherited from the original transaction. Insufficient gas during these operations results in a rollback to the state prior to the transaction attempt

Breaking down the steps:

• Transactions compete with each other to be included in blocks. Once selected, they proceed to the EVMs.
• EVM verifies and executes these opcodes one by one
•  The EVM accesses and updates the global state database, which stores information about all accounts and their balances, to process transactions

Key Features of EVM

Let's learn about some key features of EVM.

1 Decentralization

The decentralized nature of EVMs like the BNB chain ensures that the Ethereum smart contract platform remains robust and resistant to the control of any single authority. This is accomplished by code execution by distributed nodes and collective verification across the network. It creates a trustless environment through transparent and immutable setup of transactions.

2 Turing complete

Turing completeness is a unique aspect of EVM. This means that EVMs are theoretically adept at handling any computational task, opening up endless possibilities for developing applications given enough resources.

EVM implements a gas system to prevent network abuse and manage computational resources efficiently. This system ensures the stability of the network and limits the computational effort required to execute transactions and smart contracts.

What Is EVM Compatibility?

Being a pure smart contract platform, Ethereum has already developed a rich and diverse developer community. EVM compatibility enables developers to deploy Ethereum-based smart contracts and Dapps on their chains without any modifications.

The primary benefit of EVM compatibility is to increase interoperability between blockchain networks. It supports cross-chain transactions, asset transfers and data sharing, ensuring seamless communication and interaction with the Ethereum mainnet. Essentially the interconnected network expands the operational capabilities and scope of the decentralized platform.

Additionally, EVM-compatible chains provide an intimate environment for developers familiar with Ethereum's tools and language, making their development and innovation easier. This proximity reduces barriers to learning and complexity to entry, thereby encouraging greater participation and development across platforms.

Orderly Network is expanding to EVMs

It's pretty clear that the Ethereum ecosystem is at the heart of DeFi and dApps. This is proven by the thousands of dApps working on the Ethereum blockchain

The most important thing is that projects existing outside of the local Ethereum blockchain are compatible with EVM. EVM is in line with DeFi Orderly Network's core vision, so we are currently working on expanding to it.

Orderly's expansion is the first step because the largest and most powerful ecosystem in DeFi is Ethereum; That's why we are bringing the benefits of orderly networks and CLOB infrastructure like strong liquidity levels to the EVM chain. Also, Orderly Network becoming compatible with the EVM chain led to the decision to expand into the EVM ecosystem which is in line with our vision to provide an omnichain CLOB infrastructure for DeFi.

This expansion will thus ultimately expose all the tools, resources and infrastructure of the Orderly Network to the larger DeFi space to create better options and use cases for DeFi projects in the EVM ecosystem.

Conclusion

The Ethereum Virtual Machine (EVM) is a significant innovation in blockchain technology. The ability to execute smart contracts and power dApps has redesigned industries and opened up horizons for a more transparent, efficient and decentralized future. As we move forward daily, EVM has pioneered blockchain evolution and is redefining our digital landscape.