Introduction
Blockchain networks have been increasingly gaining popularity over the past decade, with people finally understanding the power they hold to shape and change the future of the world.
This article summarizes all you need to know about one of the world's most powerful machines; The Ethereum Virtual Machine, popularly known as the EVM, in four (4) minutes.
The Ethereum Virtual Machine (EVM) is a runtime environment that serves as a decentralized computer for the execution of smart contracts.
This means that every smart contract written and deployed on the Ethereum network gets processed by this machine. It is also responsible for processing and validating transactions, as well as maintaining the state of the network.
It is a Turing-complete virtual machine, so it can execute any computation, as long as the computation can be expressed algorithmically.
Why is the EVM important?
The EVM is of great importance to the Ethereum network due to a plethora of features that have been made possible due to its existence.
Execution of Smart contracts: Smart contracts are used to create decentralized applications that facilitate secure, transparent transactions without the need for a third-party system. This is because the EVM handles all computations accurately.
Security and Consensus: The EVM exists to ensure that all participating nodes on the network agree on the execution and outcome of smart contracts. This security is achieved in different ways, such as the implementation of consensus mechanisms like Proof-Of-Work or Proof-Of-Stake.
Turing Completeness: The versatility of being able to execute any algorithmic computation promotes the development of complex and sophisticated applications on the network. This is perhaps one of the best advantages the Ethereum Network has over its predecessor Bitcoin.
Interoperability: The EVM makes smart contracts across different Ethereum-based platforms so compatible with each other, and this helps foster a vibrant ecosystem of decentralized applications seamlessly interacting with each other as the EVM is in the simple sense 'just one big machine'.
What's wrong with the EVM?
Well, just like everything else, Ethereums' Virtual Machine has its share of limitations and drawbacks.
Poor Scalability: In the defense of the EVM, scalability is only an issue due to the congestion of the network while handling its day-to-day activity. Due to the EVM's design which is based on global state and sequential execution, when the network is in high demand, this congestion leads to slower transaction processing times resulting in higher fees and network delays.
Gas fees: For every operation carried out by the EVM on smart contracts, users must pay an execution cost which is popularly known as gas fees. In times of network congestion, this gas fee can get insanely high to the point it frustrates users as they would be charged more than what they should be. Therefore discouraging the use of the network.
Smart contract Hacks: All smart contracts operating within the EVM are vulnerable to hacks and exploitation by malicious users and groups. Having even the slightest bug in a smart contract that hasn't been properly audited could potentially lead to the loss of users' funds, and this has happened severally.
Side note: There are many more significant importance and downsides of the Ethereum Virtual Machine not listed here as this article only aims to simplify some of these concepts without diving too deep into details.
Conclusion
The Ethereum Virtual Machine was a revolutionary game changer in the world of blockchain technology, and although it has come a long way since its initial development, it still has a long way to go if it is to continue heralding the world of blockchain networks.
Interesting links
Now you have a pretty good understanding of the EVM, its ups, and its downs. Feel free to leave any questions in the comment section and Follow me for more blockchain related articles.