Understanding the concept of EVM and how it works.

Greetings dear friends,
It's another of the week and I'm delighted to share with you another interesting topic which I titled Understanding the concept of EVM and how it works. Here we are going to be learning the full meaning of EVM and how it works as well as its advantages and disadvantages.

Some concepts are not so popular in the crypto space yet very important and the case of the EVM is not an exception. I recently asked a trader if he had an idea about EVM and he said he hadn't heard anything about that before. This shows that a lot of people have no real idea about some concepts.

What is EVM?

We are all learning and that is the main reason I wish to share this concept here in the easiest way so that even those who are not familiar with the crypto space can read and understand the message I'm trying to pass. Without further ado, let's go into detail on the topic of discussion.

Ethereum Virtual Machine (EVM) is a virtual machine that is used in the Ethereum blockchain which helps to execute and validate smart contracts in the network for data consistency and decentralization of the network.

What this means is that the EVM is a virtual machine that is used in the Ethereum blockchain across every node on the blockchain i.e nothing like transaction in the blockchain that doesn't pass through the EVM the EVM acts as a gateway through which every transaction on the Ethereum blockchain is carried out.

Just like the Bitcoin network which relies on miners to validate and execute transactions for the blockchain, the Ethereum blockchain uses the EMV to perform the validation of the smart contract in all the nodes connected to the blockchain and these nodes earn ETH as a reward at the end of the validation.

It is important to mention here that the EVM is completely isolated or separated from the Ethereum network hence it is working as a separate entity this is to ensure that the blockchain has data consistency, decentralization, and proper validation across the network.

How does the EVM work?

To know how this EVM works, we need to first understand how how Bitcoin works. In Bitcoin, it uses the decentralized ledger for its operations whereas the Ethereum blockchain uses something much more complex which we call the distributed state machine.

The state machine in this concept refers to the collection of data on the Ethereum network and this includes the gas, storage, etc. The rule that this state follows is the rule established by the EVM because that is where all the processes are carried out. So data state on the Ethereum blockchain can be changed based on the rules of the EVM.

Advantages of EVM

Sometimes it is good to discuss the importance of an entity so that those reading through it will understand better its use cases. Here we will be discussing the importance of EVM to users and developers.

Familiarity to users: Since the EVMs in the Ethereum blockchain are also similar it is easier for a user to get familiar with it because what the EVM did in transaction A is what it will do in transaction B.

Diverse products and utilities for users: Since we have new EVMs coming up because of the many tokens built using the Ethereum blockchain, we can now diversify our assets and earn more returns from more promising tokens.

Saving time for developers: Since it is the same pattern of developing the EVM tool, developers do not need to write a new program anytime a new EVM is to be deployed, instead they will only need to make some minor changes.

Increased influence for developers: Since it can be deployed on another compatible network for usage, it will create more influence on the users and they will also have more audience because more people will use it if deployed on another network.

Disadvantages of EVM

Everything that has an advantage also has a disadvantage and the case of the EVM is not an exception. So we will be looking at a few of the disadvantages below.

High-security risk: The EVM is prone to security attacks that can lead to loss of access by the blockchain thereby leading to loss of users' funds. So it is paramount that the security part be well-taken care of.

High audit cost: The cost of auditing when checking through the network is also very high and that is one of the reasons why the Ethereum blockchain charges higher than many other networks.

High transaction fee: Network chargers here are very high when compared to another network especially when the network is congested.

Conclusion

Ethereum Virtual Machine (EVM) is a virtual machine that is used in the Ethereum blockchain which helps to execute and validate smart contracts in the network for data consistency and decentralization of the network. We have also discussed how it works above, the merits and demerits.

Remember also that trading is like meditation, patience is the key. Always wait for the market to come to you and not for you to go to the market. Learn to identify your key support and resistance level and also trade with the trend and in that way, you will be a successful trader.

Finally, I want to thank you all for reading through my post today. If you have any questions or contributions, please do well to use the comment section of this post. See you all in my next publication.

Disclaimer: ^{This post is made as an education and not investment advice. Digital asset prices are subject to change. All forms of crypto investment have a high risk. I am not a financial advisor, before jumping to any conclusions in this matter please do your research and consult a financial advisor.}

NB: All images except otherwise stated are mine and are edited on canvas.