What Is Parallel EVM?

There has been a lot of talk about Parallel EVM technology lately, and networks are taking steps one after another to shape their working mechanisms in this direction.

So what is Parallel EVM? How is it different from the currently used EVM? Let’s talk about these briefly.

What is Parallel EVM?

Parallel Ethereum Virtual Machine (Parallel EVM) is an advanced iteration of the traditional Ethereum Virtual Machine (EVM) used in the Ethereum blockchain. The key distinction between Parallel EVM and the standard EVM lies in their approach to processing transactions and executing smart contracts.

In a standard EVM, transactions and smart contract executions occur sequentially. Each transaction must be processed one after the other, forming a linear and orderly progression. This method, while straightforward, can lead to bottlenecks, especially as the volume of transactions increases. As each transaction waits its turn, the time to process can increase, leading to potential delays and higher costs (in terms of gas fees).

In contrast, Parallel EVM introduces the concept of parallel processing to this environment. Instead of processing each transaction sequentially, Parallel EVM can handle multiple transactions at the same time, provided they do not depend on the outcome of each other. This parallelism significantly enhances the efficiency and scalability of the network.

In fact, it would not be wrong to compare Parallel EVM to Apache Spark in parallel processing of independent data. Basically, in both of them, independent transactions and data can be processed asynchronously, without waiting for each other, and as a result, the overall process can be more effective.

Example of Independent Block Data Processing:

Consider a block in the Ethereum blockchain that contains the following transactions:

1. Transaction A: Alice sends 5 ETH to Bob.
2. Transaction B: A smart contract executes a function to calculate and distribute tokens to various holders based on their current holdings.
3. Transaction C: Charlie sends 3 ETH to Dana.

In a standard EVM (Let’s assume the fees paid are A>B>C), these transactions would be processed in the order they are received — A, then B, then C. However, in a Parallel EVM, Transactions A and C can be processed simultaneously because they are independent of each other. They are simple transfers of ETH and do not affect or depend on the outcome of Transaction B. Meanwhile, Transaction B, being a smart contract execution that might depend on the precise state of the blockchain, might be processed separately.

This ability to process Transactions A and C at the same time as B (but in a different thread) significantly speeds up the overall block processing time. It allows the network to handle a larger volume of transactions more efficiently, thereby increasing throughput and reducing delays and costs.

To further understand the impact, consider a decentralized exchange (DEX) running on the blockchain. In a standard EVM, if multiple users are trying to execute trades simultaneously, each trade must wait for the previous one to complete. During times of high volume, this can lead to slow trade executions and a poor user experience.

In a Parallel EVM, many of these trades could be processed at the same time, as long as they don’t interfere with each other (for example, trades involving different trading pairs). This parallel processing would lead to faster trade execution, a more responsive DEX, and an overall improved user experience.

In summary, Parallel EVM represents a significant step forward in blockchain technology, addressing the critical issue of scalability by enabling more efficient transaction processing. By processing transactions in parallel where possible, it allows the network to handle a higher volume of transactions more swiftly and cost-effectively, making the blockchain more suitable for a broader range of applications and use cases.

Technologies Currently Using Parallel EVM

1. Sei: Sei is a notable example of a blockchain network utilizing Parallel EVM. It leverages this technology to provide a highly scalable platform for decentralized finance (DeFi) applications. By using Parallel EVM, Sei can process DeFi transactions at a much faster rate compared to traditional blockchain networks, making it an attractive platform for developers and users in the DeFi space.
2. NEON EVM (NEON): NEON is another blockchain that has integrated Parallel EVM into its infrastructure. This integration allows NEON to offer enhanced performance and scalability for Ethereum-compatible smart contracts. By using Parallel EVM, NEON can execute these contracts more efficiently, attracting developers who are looking for a high-performance environment for their Ethereum-based applications.
3. Nomad: Nomad plans to utilize Parallel EVM to enhance its cross-chain communication capabilities. The use of Parallel EVM will enable Nomad to process cross-chain transactions more efficiently, reducing the latency and costs associated with bridging assets between different blockchain networks.

If I can find time, I would also like to do research on how these networks use parallel EVM technology within themselves.

In addition, many other networks are working to add the parallel EVM structure to their existing system.