The Ethereum Virtual Machine (EVM) is the powerhouse of the Ethereum network and blockchain, as it holds the base for smart contract execution and dApp development. The decentralized ecosystem runs on the Ethereum nodes and is programmed to process and execute the codes written in Solidity, the blockchain’s native programming language. EVM is versatile but efficient, providing a secure and isolated environment against malicious activities.
Without the EVM, there would be no smart contracts on Ethereum or transaction execution through the validator. Thanks to this feature, Ethereum can evolve and expand while the cryptocurrency’s value is fairly linked with a massive marketplace. Hence, investors should learn how to buy Ethereum based on Binance data to benefit from the blockchain’s elements.
But as the crypto industry improves, the EVM must keep up with the latest features, which is why 2024 will be critical for this technological advancement. Here’s why.
What does the EVM precisely?
The EVM is Ethereum’s functionality core, but it handles specific blockchain operations. First, it maintains a decentralized execution on the network so that no single entry point has control over the ecosystem, providing the trustless and censorship-resistant network we have today.
The process happens when submitting a transaction to the network that spreads across nodes globally responsible for validating and executing the transaction’s codes. However, since the execution is decentralized, there are no chances of manipulating the system or for failure points to enter the network.
The EVM is also programmed to execute smart contracts, one of the most important features of the blockchain. This goes hand in hand with the Touring completeness system that performs any computation that’s productively working with the help of the gas system, preventing spam and abuse on the network.
But there’s more to what EVM can do, such as:
• Enforcing code execution securely;
• Determining similar results from nodes when executing transactions or smart contracts;
• Deploying immutable smart contracts;
• Enabling global computation to eliminate node failure;
• Establishing compact and stable code execution;
How does the EVM work?
The Ethereum Virtual Machine takes Ethereum’s computing resources and decentralized nodes network and maintains the blockchain. Nodes are significant in this process, whether they’re miners or complete nodes because they execute the network’s codes while acquiring a copy of
the EVM.
The consensus mechanism used is also critical. Ethereum started with the regular PoW but has just switched to PoS in 2022, meaning validating changes. Since then, validators can stake crypto to create new blocks and validate transactions, pushing them to act reasonably. All nodes have access to the transaction or smart contract submitted to Ethereum, and they process the code through EVM to reach a consensus. This global power of the nodes powers up the machine and provides security and immutability.
Given its importance, the EVM will receive improvements in 2024
Ethereum’s development roadmap includes a few updates related to the EVM since it’s not a perfect element. It has yet to expand its compatibility with other blockchains and must solve the problem of exchanging data and assets. Moreover, despite being decentralized, it might need standardized protocols to run smoothly.
This year’s updates that include the EVM are EIP-4788 and EIP-5656. The first, also called the Beacon Block Root Commits, will link the EVM and Beacon Chain as they haven’t been able to operate together, even though they’re pretty similar in terms of activities. The update intends to integrate the Beacon Chain into the EVM so they can collaborate and exchange information for executing smart contracts without external requirements. The proposed protocol will help reduce manipulation and benefit liquidity staking.
On the other hand, MCOPY Opcode is related to the opcodes through which the EVM operates. The update will add a new opcode to improve the data management systems during smart contract executions. Currently, copying large datasets in the EVM poses various challenges, but the upgrade will make the process more efficient by reducing gas fees and improving performance. The MCOPY Opcode will optimize contract execution and ensure access to a more extensive set of tools for developers and nodes to handle large data sets.
The EVM can be improved with various other solution
As the EVM requires more improvements, various solutions can tackle them. However, problems like the state growth and complete node demands call for more storage and increased computational power. Here are possible solutions for mitigating these challenges:
• State pruning is a method that requires removing old and unnecessary data from the network to reduce storage needs;
• Sharding means dividing transaction processing across multiple shards to improve scalability;
• The state rent mechanism requires users to pay for the used storage space to introduce an incentivization system;
• Data efficiency would greatly benefit EVM’s performance;
• Layer 2 solutions, whether payment channels or sidechains, are specially made to handle scalability;
How can the EVM be compatible with other blockchains?
The EVM lacks enough compatibility to connect with other blockchains, which hinders its expansion and potential outside Ethereum. However, this can change by improving several aspects of the machine, such as the following:
• Standardized protocols can link Ethereum-based platforms for full compatibility, such as dApps;
• Testing and validating EVM engagement with other platforms for valuable insights;
• Version control mechanisms are essential for smooth system updates;
• Documentation and guidelines of the EVM can put the base of compatibility;
• Communication within the Ethereum community;
The EVM machine should be compatible with other blockchains and ecosystems because it brings out more opportunities and provides solutions to other networks’ challenges by adding security and immutability and eliminating node failure.
Bottom line
The EVM (Ethereum Virtual Machine) is a critical component of Ethereum as a blockchain and ecosystem because it drives smart contract execution and ensures a safe environment for users and crypto companies. Considering its importance, the EVM will receive additional upgrades in 2024 concerning manipulation, liquidity staking and data management. After these improvements, the EVM will contribute to superior scalability measures in the Ethereum blockchain, reducing gas fees and offering developers more tools for verifying transactions.