Most of us in the crypto, Web-3, and blockchain space have heard a thing or two about “EVM and EVM compatible blockchains” but don’t know what they mean. This article will lay out the meaning of EVM and EVM compatibility in the simplest way possible.
WHAT DOES EVM MEAN?
EVM is an abbreviation that stands for Ethereum Virtual Machine. Before we go further, let’s check out what “virtual machine” means so that we can relate to it. A Virtual Machine (VM) is a software program that simulates a computer environment, including its own virtual CPU, memory, storage, and other hardware components. It can be used to run software that is not compatible with the host computer’s operating system, or to run multiple operating systems on the same computer. The EVM operates in a very similar way to all other VMs but also has substantial differences from them.
The EVM can be described as a VM that is in charge of executing smart contracts, as well as managing and controlling the state of the Ethereum blockchain. It is also responsible for the development and execution of new tokens and decentralized finance (DeFi) apps on the Ethereum network. Consider it a virtual machine that runs on the Ethereum network, allowing developers to create and deploy smart contracts and, in the process, keeping the Ethereum network secure and tamper proof.
WHAT DOES IT MEAN FOR A BLOCKCHAIN TO BE EVM-COMPATIBLE?
EVM-compatible blockchains are blockchain platforms that fully support the Ethereum Virtual Machine (EVM), which allows them to run and execute Ethereum smart contracts. This enables developers to easily develop DApps on these platforms, similar to how it is done on the Ethereum blockchain. In addition, DApps developed on EVM-compatible blockchains can easily interact with the Ethereum network, creating a seamless multi-chain experience. The ability to execute Ethereum smart contracts on EVM-compatible blockchains means that developers can deploy the same smart contracts they use on the Ethereum blockchain without making significant changes to their code. This allows for easy migration of applications and tokens between different EVM-compatible blockchains, creating a network of interoperable blockchain platforms.
By leveraging the EVM and building on EVM-compatible blockchains, developers can create multi-chain DApps that interact with other EVM-compatible blockchains, allowing for greater flexibility and innovation in the decentralized application space. This interoperability opens up new possibilities for cross-chain asset transfers, data exchange, and other use cases that were previously limited to a single blockchain network.
A number of EVM-compatible blockchains include:
- BSC
- POLYGON
- HEDERA
- AVALANCHE
- CARDANO
- ARBITRUM
- ZKSYSNC
- OPTIMISM
- TRON
- FANTOM etc.
HEDERA’S EVM-COMPATIBILITY
Hedera became EVM-compatible on February 3, 2022, when the Hedera smart contract 2.0 mainnet was launched. Hedera Smart Contract 2.0 was launched with the aim of integrating the Hedera Smart Contract Service with the Hedera Token Service (HTS). The Hedera Smart Contract Service is fully compatible with the Ethereum Virtual Machine (EVM) and can run Solidity. With the introduction of Smart Contracts 2.0, Hedera now offers Solidity and EVM-compatible smart contracts with the added versatility of Hedera’s tokenization infrastructure. This means that developers can now utilize the Hedera Token Service to support native Hedera tokens and NFTs, creating new possibilities for users and developers.
IMPORTANCE OF EVM-COMPATIBILITY
- EVM compatibility enables different blockchains to be seamlessly interoperable with each other, enabling developers to build DApps that can interact with multiple networks.
- It enables developers to write and deploy Ethereum smart contracts on EVM-compatible blockchains without significant modifications hence saving time and effort.
- EVM compatibility allows for the development of multi-chain DApps that can leverage the unique features of different blockchain networks, not just Ethereum.
- It enables developers to access a large pool of existing Ethereum developers and resources, making it easy to locate talent and stay up to date on the newest trends and best ways to carry out certain tasks.
- EVM compatibility helps to create a standard for smart contract execution, reducing fragmentation and improving efficiency in the blockchain ecosystem.
- It lets developers take advantage of the Ethereum network’s security and dependability, which has been battle-tested and proved to be trustworthy over time. EVM compatibility also allows for the development of decentralized finance (DeFi) apps, which have grown rapidly in recent years and have the potential to transform traditional finance.
To conclude, EVM compatibility is a crucial feature that allows Hedera developers to easily access a vast pool of existing resources, making them viable to stay up to date on the latest trends and best practices. Developers can reference the Ethereum network’s battle-tested code bases which facilitate the development of innovative and creative DApps on Hedera. Overall, EVM compatibility is an important factor in the growth and success of the Hedera network.
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About HeliSwap
HeliSwap is bringing DeFi to Hedera by launching its first DEX and DAO to unlock the power of Ethereum in the ecosystem, supporting swaps between HTS, ERC20s and HBAR in a cost-effective and permissionless way.
