As we are now using next-gen internet web 3.0, the need for interoperability and connection between two or more blockchain ecosystems is also increasing. In this case, virtual machines come into the picture, and Ethereum Virtual Machine (EVM) is the most widely used VM.
What is an Ethereum Virtual Machine (EVM)?
EVM is a programmable, open-source, decentralized public blockchain. It stores millions of executable projects and runs and executes smart contract deployment. The transactions on EVM are clustered in the blocks in a decentralized ecosystem. The consensus algorithm is applied for transaction validation. The EVM uses proof-of-work consensus, meaning participating nodes must solve an arbitrary mathematical puzzle. All nodes on the EVM ensure the POW is achieved for transaction validation.
Ethereum Virtual Machine is a Turing complete, which means it can solve complex computational problems if appropriate instructions, memory, and time are allocated. EVM uses the Ethereum protocol that ensures the execution of every code in a trustless ecosystem, and the outcome is guaranteed for smart contract execution.
The system keeps a track record of execution costs for all the instructions on the EVM. The execution cost is recorded in terms of the Gas units. At the beginning of transaction execution, Ether is reserved for gas fees. With this Gas reserve mechanism, the validator is ensured about pre-paid gas amount even if the transaction does not execute. At the transaction execution time, the validator will ensure that there is valid transaction information and enough funds are available for the transaction.Thousands of applications can run on EVM as its nodes work in a decentralized manner without any need for them to have their blockchain.
Data Storage in Ethereum
The data storage on Ethereum resembles bank record-keeping. The data is stored in a trie (tree-like) structure. Complete information is not recorded in the blocks of the Ethereum blockchain, and only hashes of the transactions are stored in the node. Two different data types exist in Ethereum, namely permanent data and ephemeral data.
1. Permanent Data: EVM transactions are permanent transactions that can not be altered once confirmed. This data is stored in a trie (tree-like structure)
2. Ephemeral Data: The example of Ephemeral data is the account balance. This data changes with the progress of the transactions.
Benefits of EVM:
1. Easy to build Dapps on EVM: It is an effortless task for the developers to build Dapps on the EVM due to its interoperability feature.
2. Many benefits of smart contracts: One famous example is the smart contract for NFT, which enables the creation of digital art and its sale on a decentralized platform.
Downsides of EVM:
1. Not entirely decentralized: Many Ethereum nodes use centralized cloud servers. If these agencies discontinue the EVM, it could damage the network.
2. Huge gas fees at the time of network congestion: Due to a rise in the load on the blockchain, it may result in network congestion, leading to an increase in the gas fees. This incidence is the biggest downside for the transacting parties.
Final Thoughts: EVM is the most popular and adopted blockchain platform regarding interoperability and technological prowess. In the following article, we will discuss more exciting information about EVM. Please feel free to comment on the box below if you have questions. Team Blockchain Shiksha would be happy to help.©
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