EVM Compatible Blockchains
The concept of Ethereum Virtual Machine (EVM) support is a vital feature that is rapidly redefining the industry in the area of cryptocurrencies, which is a dynamic and ever-changing market. Have you ever noticed that some of your crypto addresses for different blockchains like Ethereum, Polygon , and Binance Smart Chain are identical? This phenomenon is due to the influence of the EVM.
EVM support means the ability of a blockchain to integrate with the Ethereum virtual machine. This compatibility is more than a technical feat; it represents a leap towards interoperability between various blockchain networks. Notably, some of the most widely used blockchains, such as Avalanche , Binance Smart Chain, Phantom Opera, and Polygon, have adopted EVM support, which is a testament to its importance.
In this comprehensive exploration, we'll delve into what it means for a blockchain to support EVM and the workings behind these networks. Understanding the role of EVM provides insight into the benefits and innovations that EVM-enabled blockchains bring. This understanding is crucial as we witness how these compatible networks are shaping the future of blockchain technology, solving interoperability challenges and driving market innovation.
EVM stands for Ethereum Virtual Machine
To understand the concept of the Ethereum Virtual Machine (EVM), it is helpful to start with the basics of how the software works. Developers create programs using programming languages, such as C++. However, Central Processing Units (CPUs) cannot directly understand languages like C++. C++ code is therefore compiled into bytecode, a set of instructions that CPUs can process.
Ethereum is fundamentally different from a traditional computer. It does not have a singular CPU, but is a global network, with hundreds of computers around the world simultaneously running the EVM. Within a particular application known as Go Ethereum (Geth), which is one of the first implementations of the Ethereum protocol, the electronic virtual machine (EVM) functions as a virtual central processing unit (CPU).
The EVM is not a physical hardware component. It is similar to a software-based CPU that runs bytecode, the compiled version of smart contracts . By running Geth on your computer, you effectively join the Ethereum network and operate a version of EVM.
Smart contracts for Ethereum are written in a specific programming language called Solidity. These contracts are then compiled into bytecode and spread across the network, to every computer running Geth and, by extension, EVM.Whenever a smart contract is deployed, a copy of the contract is sent to every node. Activating a smart contract causes these nodes to execute its bytecode, leading to what is known as a “state change.” This change represents an alteration to the current state of the blockchain, which can only be achieved through consensus between all nodes.
Therefore, the EVM is often described as a "distributed state machine." Maintains the state of the blockchain, which can be modified through transactions. Each transaction processed by EVM potentially alters the state of the blockchain, ensuring consistent and synchronized updates across the Ethereum network. This distributed nature of EVM not only improves security but also underpins the decentralized spirit of blockchain technology.
Why do we need EVM compatible blockchains?
The Ethereum network, a pioneer in the implementation of smart contracts, continues to set the benchmark for blockchain technologies. However, its large user base and substantial size have created scalability challenges, manifesting in slow transaction speeds and high gas fees . Ethereum 2.0, an ambitious upgrade, aims to address these issues and promises greater efficiency and capacity.
In response to Ethereum's current limitations, several permissionless blockchains have emerged that offer faster transaction processing and lower gas fees. These networks, often open source and derived from the Ethereum codebase, employ more efficient consensus mechanisms. Instead of reinventing the wheel in smart contract implementation, these developers have chosen to adapt parts of the Ethereum network. This strategy has proven to be advantageous, saving time and facilitating knowledge transfer, with a crucial focus on interoperability.
These alternative blockchains have created environments similar to Ethereum virtual machines, allowing developers to avoid the need to create solutions and protocols from scratch. As a result, the development and deployment of smart contracts and decentralized applications (DApps) are significantly accelerated. These networks feature faster transaction speeds, higher throughput, and reduced gas costs. Notably, they also tend to have a lower energy footprint per transaction compared to Ethereum.
A key feature of these blockchains is their interoperability, which is primarily achieved through interchain bridges . These bridges enable seamless asset transfers between different EVM-enabled networks. This capability not only improves user convenience but also fosters a more interconnected and efficient blockchain development company. As such, these developments represent a significant step in addressing the scalability and efficiency challenges facing the Ethereum network, while also advancing the broader blockchain landscape.
What does 'EVM compatibility' mean?
EVM (Ethereum Virtual Machine) support means the ability of a blockchain to run Ethereum smart contracts, allowing developers to write and deploy identical smart contracts on multiple EVM-compatible blockchains with minimal code adjustments. This feature makes it easier to create multi-chain decentralized applications (dApps) by allowing these smart contracts to seamlessly interact with other EVM-compatible blockchains.
While not all EVM-compatible blockchains are Layer 2 networks , a significant portion fall into this category. The scalability and efficiency of Layer 2 networks are the primary design goals of these networks. They operate on the Ethereum mainnet, inheriting the strength of the Ethereum ecosystem, including its tools, technological advancements, and established user base. These networks employ mechanisms such as optimistic summarization and zk summarization to improve performance. By handling off-chain calculations and only recording final state changes on the mainnet, Layer 2 solutions significantly reduce transaction fees and increase overall blockchain performance.
Additionally, EVM support is a crucial factor in the growing interoperability trend in the blockchain world. It enables not only shared smart contracts, but also shared infrastructure, security models, and development frameworks. This approach not only streamlines the development process but also expands the potential user base of dApps as they can serve users on multiple blockchain platforms. As the blockchain space evolves, EVM support is becoming a key component in fostering a more connected and efficient blockchain ecosystem, providing developers with the tools to create more versatile and scalable applications.
Benefits of EVM-compatible blockchains
The Ethereum Virtual Machine (EVM) offers a set of advantages for those developing smart contracts and decentralized applications (dApps) on EVM-compatible blockchains:
Portability and Interoperability – Smart contracts and dApps designed for an EVM-compatible blockchain, such as Ethereum, can be effortlessly ported to others such as Polygon with minimal code changes. Through the implementation of this functionality, the development process is made easier, and the establishment of a blockchain ecosystem that is more integrated is encouraged.
Cost Effectiveness : EVM provides a uniform environment for developing smart contracts and dApps, allowing developers to write code once and deploy it to any EVM-compatible chain. This uniformity eliminates the need for separate code bases for each blockchain and reduces development costs. Additionally, since most EVM-compatible blockchains use Solidity, a popular language for Ethereum programming, developers face a much lower learning curve when working on various EVM-compatible platforms.
Expanded user base and developer community – dApps built on EVM-compatible blockchains inherently leverage the extensive Ethereum network. This connection provides access to Ethereum's significant user base, which includes over 100 million unique wallet holders, facilitating broader adoption of web3 applications developed on EVM-compatible networks. Additionally, this integration into the Ethereum ecosystem brings developers into a rich and vibrant community, offering abundant resources, shared knowledge, and collaboration opportunities.
These benefits not only make EVM a powerful tool for developers, but also play a crucial role in the advancement and adoption of blockchain technology. By fostering an environment that fosters innovation, profitability, and community collaboration, the EVM is instrumental in driving the future of decentralized applications and smart contract development.
Which blockchains are supported by EVM?
The burgeoning field of EVM-enabled blockchains features a diverse and dynamic range of platforms, each bringing unique features and benefits to the blockchain ecosystem. These networks, which adopt the Ethereum Virtual Machine (EVM) for enhanced functionality, serve a wide range of developers and users. Here is an integrated overview, structured to highlight the key aspects of these blockchains:
Ethereum and its influential legacy :
Smart contracts and decentralized applications (dApps) were pioneered by Ethereum (ETH), which also established the standard for EVM compatibility.
Layer 2 Solutions – Networks such as Arbitrum , Optimism and Polygon (MATIC) offer scaling solutions for Ethereum, improving transaction speed and profitability using technologies such as Optimistic Rollup.
Top EVM-Supported Blockchains :
Binance Smart Chain (BSC) – stands out for its low transaction fees and high performance, attracting a multitude of dApps and users.
Avalanche C-Chain – Offers high performance and scalability while ensuring compatibility with Ethereum.
Cardano : Working on KEVM to enable Ethereum-style smart contracts, despite not being natively supported by EVM.
TRON (TRX) – A high-performance blockchain aimed at decentralizing the Internet, which started as an ERC-20 token .
ThunderCore (TT) – An EVM-compatible, gaming-focused blockchain with native Thunder Token (TT) and ThunderCore Bridge for cross-chain mechanisms.
EVM Compatibility vs. EVM Equivalence :
EVM Equivalence – Networks like Optimism and Metis are transitioning toward full compliance with the Ethereum protocol, exemplifying EVM equivalence, as opposed to the broader category of EVM-compliant chains.
Layer 2 Distinction – EVM equivalent chains, such as Optimism, are integrating closely with Ethereum, offering seamless transitions between mainnet and Layer 2 operations.
Greater reach and innovation:
Diverse Networks – Chains like Solana and Cosmos (with Evmos) are integrating EVMs to improve interoperability and scalability.
Innovation in Layer 1 and 2 solutions – Platforms like Fantom , which use DAG technology, and projects like Cardano's KEVM, are pushing the boundaries of EVM support.
This consolidated vision underscores the collective progression toward optimization, improving user experience, and scaling the decentralized web, anchored in the foundational technology of the Ethereum Virtual Machine. These EVM-compatible and equivalent blockchains are instrumental in shaping the future of blockchain technology, offering scalability, interoperability, and innovative solutions across the cryptocurrency landscape.
EVM-Compatible Blockchain Use Cases
EVM-enabled blockchains are at the forefront of blockchain innovation, offering a broad spectrum of applications that are reshaping various industries. Below are some key use cases that highlight its versatility and potential:
Decentralized Finance (DeFi) :
Core Services: DeFi is a core application that offers services like lending, borrowing, and yield farming.
Expansion: DeFi platforms are evolving to include more complex financial instruments such as derivatives and insurance.
NFT Markets :
Creation and trading: These blockchains support NFT marketplaces to create, buy, and sell NFTs , with low transaction fees that improve accessibility.
Diverse Sectors: The integration of NFTs into art, music, sports, and entertainment is broadening their appeal and utility.
Games and virtual worlds :
Blockchain-based games: use in games to create decentralized gaming experiences and virtual economies.
The development of virtual worlds offering users the opportunity to buy, sell, or rent digital real estate is referred to as virtual real estate.
Supply Chain and Traceability :
Product Authenticity: Leveraging the immutable nature of blockchain to track and verify product origin and history.
Operational Efficiency: Improve logistics and reduce counterfeits in supply chains.
Gobernanza and DAO :
Democratic Processes: Facilitate transparent and inclusive decision-making in decentralized organizations.
Community management: empowering communities to collectively manage resources and make decisions.
Tokenization and Crowdfunding :
Asset digitization: enable digital representation of physical assets, improving liquidity.
Project financing: streamlining the process of obtaining capital for innovative projects through decentralized crowdfunding platforms .
Interoperability and bridges between chains :
Asset Transfer: Enabling the seamless movement of assets between different blockchain ecosystems.
Network connectivity: improve communication and interaction between various blockchain networks.
Decentralized Identity (DiD) :
Privacy and security refer to the provision of a private and secure administration of digital identities, with the goal of lowering the likelihood of identity theft and fraud.
User empowerment: Giving people control over their personal data and how it is shared.
Social networks and content platforms :
Data control: creating decentralized social media platforms where users have greater control and ownership of their content.
Monetization Models: Innovative new ways for content creators to monetize their work.
Supply Chain Financing:
Automation and Transparency: Use of smart contracts to automate processes and increase transparency in financial transactions within supply chains.
These applications demonstrate the role of EVM-enabled blockchains in advancing not only the financial sector, but also transforming the arts, entertainment, logistics, governance, and more. Its ability to achieve decentralization, transparency and efficiency is paving the way for a new era of technological innovation and social transformation.