What is EVM? Understand the Ethereum Virtual Machine and master the core of the Web3 ecosystem

The Ethereum Virtual Machine (EVM) is the core of the Ethereum protocol. It is a global, decentralized computing engine designed specifically for executing smart contracts.

You can think of it as a virtual supercomputer maintained collectively by tens of thousands of nodes worldwide, ensuring that code runs precisely and trustlessly according to predefined rules on Ethereum and compatible blockchains.

01 Technical Core: How EVM Drives Blockchain

The essence of the EVM is a stack-based, Turing-complete state machine. This definition encompasses three key aspects.

First, “stack-based” means all computation instructions and temporary data are organized and processed according to a Last-In-First-Out (LIFO) stack structure. This architecture lays the foundation for deterministic execution.

Second, “Turing-complete” indicates it can theoretically perform any computation task. However, the Gas mechanism artificially sets computational limits to prevent infinite loops or malicious code from exhausting network resources, cleverly solving the “halting problem.”

Finally, as a “state machine,” the EVM manages the global state of Ethereum. This state includes balances, storage data, and contract code for all accounts (both user accounts and contract accounts).

Whenever a transaction is executed, the EVM reads the current state, performs calculations based on the transaction instructions, and produces a deterministic new state, which is synchronized and updated across the entire network.

02 Execution Process: From Code to On-Chain Action

A smart contract on the EVM undergoes a standardized process from deployment to execution. The entire process begins with developers writing contract logic in high-level languages like Solidity or Vyper.

The code is then compiled into EVM bytecode, a low-level sequence of operation codes that the EVM can directly understand.

When the contract is deployed on-chain, this bytecode is permanently stored at a specific contract address.

Every interaction between users and the contract—such as token swaps or staking assets on Gate—triggers an EVM execution.

Your wallet initiates a transaction, attaching the required Gas limit and Gas price. The EVM reads and executes each operation code (like arithmetic operations ADD, MUL, or state storage SSTORE) in the bytecode, with each step consuming a certain amount of Gas.

If execution completes successfully, state changes (such as token transfers) take effect; if Gas runs out mid-execution, the process rolls back, but the Gas fees already spent are non-refundable. This mechanism effectively prevents network abuse.

03 Ecosystem Expansion: Beyond Ethereum, the EVM-Compatible Chain Universe

The design of the EVM has been so successful that its standards have far exceeded Ethereum itself, forming a vast “EVM-compatible chain” ecosystem.

These blockchains (such as BNB Smart Chain, Polygon, Avalanche, TRON, etc.) choose to fully or partially implement the EVM specification.

This means that smart contracts and DApps developed for Ethereum can be deployed directly on these chains with minimal adaptation or even without modification.

This compatibility creates significant network effects. It greatly lowers the barriers for developers to migrate and develop cross-chain, enabling liquidity, users, and assets to move relatively freely across multiple chains.

It also explains why many mainstream crypto assets exist within the EVM environment. Below is a brief overview of some major EVM-related tokens’ latest prices on Gate (data as of January 5, 2026):

These price dynamics reflect the market vitality and attention within the entire EVM ecosystem. For investors, understanding whether a project is EVM-based is an important dimension for assessing its technological maturity, development convenience, and ecosystem connectivity.

04 Current Challenges: Scalability Bottlenecks Facing EVM

Although the EVM ecosystem is thriving, its initial design also faces practical challenges, most notably scalability limitations.

As the earliest EVM platform, Ethereum’s mainnet is constrained by its sequential transaction processing mode and limited block space, often leading to soaring Gas fees and slow transaction confirmations during network congestion.

This directly impacts user experience and restricts the development of high-frequency, low-cost DApps (such as GameFi and micro-payments).

To overcome these bottlenecks, the community has proposed multi-layer solutions.

Layer 2 scaling solutions (like Optimistic Rollups, ZK-Rollups) bundle many transactions and submit proofs to the Ethereum mainnet for settlement, sharing the computational load of the EVM.

Meanwhile, new high-performance EVM-compatible chains (such as Monad) attempt to innovate from Layer 1 by introducing parallel execution, improved consensus mechanisms, and other cutting-edge technologies, aiming to achieve ultra-high performance of over 10,000 TPS.

05 Future Evolution: Continuous Upgrades and Broader Blueprints

EVM is not standing still. The Ethereum core development team continues to optimize it deeply.

According to plans, Ethereum will undergo a major upgrade called Glamsterdam in 2026, which is expected to significantly increase network throughput to around 10,000 transactions per second by introducing parallel processing and raising Gas limits.

Modular blockchain architecture is another key trend. Future blockchains may separate functions such as consensus, data availability, settlement, and execution into layered components. EVM is expected to further evolve into a highly specialized “execution layer,” focusing on efficient and flexible smart contract operation, while other layers provide security and data guarantees.

From a broader perspective, EVM as a standardized computing environment may be widely adopted as a reference model. It ensures deterministic execution and state consistency for decentralized applications, forming the foundation for building a trustworthy digital economy.

Conclusion

For global trading platforms like Gate, a thriving EVM ecosystem means a rich variety of assets and trading opportunities. Understanding EVM is not only about grasping a core technology but also about comprehending the operational logic of the current blockchain application innovation battlefield. As scaling solutions are implemented and cross-chain interoperability improves, a more efficient, interconnected multi-chain world linked by EVM is becoming a reality.