The Ethereum Virtual Machine is a programming model that allows developers to create Ethereum-based Decentralised Applications (DApps). This virtual computer stores all Ethereum accounts and smart contracts.
The EVM eliminates the need for powerful hardware, making it accessible for novice programmers. However, further comprehension of the Ethereum virtual machine and EVM code would require familiarity with computer programming terms and blockchain fundamentals such as proof of work, the Merkle Tree, and hash functions.
What is the primary objective behind EVM?
The EVM enables Ethereum-based applications to run efficiently without any significant downtime. Furthermore, from the perspective of blockchain developers, the EVM acts as the comprehensive program that runs smaller executable programs known as smart contracts in Ethereum while providing them with the autonomy to write these smart contracts in any other programming language such as Solidity, Python or Yul.
Because of this flexibility and autonomy offered by Ethereum, the blockchain has been used to create thousands of decentralised applications or DApps within the decentralised finance ecosystem.
Each of these new DApps, along with the smart contracts powering them, is converted into bytecode which is fed into the EVM and disseminated among all nodes in the Ethereum network. When a smart contract is deployed, the EVM is responsible for communicating with all nodes and effecting state changes when a consensus has arrived.
EVM is inserted inside all nodes of the Ethereum network to execute smart contracts using bytecode instead of the base programming language.
Data Storage on the Ethereum blockchain
Data is stored using trie (tree-like) data structures. Account balances, for example, are not explicitly kept in the Ethereum network blocks. Instead, only root node hashes of payments, stages, and invoices get stored in the blockchain.
Permanent data and Ephemeral data are the two types of data in Ethereum. For example, transactions are Permanent data, and the balance of an account address is Ephemeral data.
Permanent Data gets stored in the transaction trie and can never be changed. Ephemeral Data gets recorded in the state trie and can be altered accordingly whenever a payment happens. The record-keeping for Ethereum is similar to that of a bank.
Know the Benefits of EVM
• Anybody can use EVM to construct their own DApp. There are countless possible applications for this type of software, and it isn't limited to a specific demographic or individuals with a lot of money or contacts.
• Smart contracts have a wide range of potential advantages. For example, anyone can make digital art and sell it on a distributed global market using NFTs (non-fungible tokens). It enables greater virtual access to the art market that was previously impossible.
Disadvantages of EVM
• The EVM necessitates some technical expertise. The EVM is limited to those who do know how to code. The development of more user-friendly systems is still ongoing.
• We experience exorbitant gas prices when the network is saturated. It could be a significant disadvantage for Ethereum users. While individuals making massive transactions may be unaffected, those sending minor transactions may be unable to access the network for an extended period. It is particularly problematic for decentralised apps.
When many users interact with the DApps' smart contracts and make huge transactions, operations can slow down or even cease working if gas fees get too expensive. (An ETH transaction is a representation of every process done on Ethereum. Fees are required for transactions. On Ethereum, fees are referred to as Gas, just like the Gas that powers distributed applications.)
Key Takeaways
Because Ethereum is a transaction-based "state" machine, it can implement any transaction-based state machine notion. For various reasons, developers can use almost any Ethereum virtual machine (EVM) specification to generate smart contracts.
