The use of this site and the content contained therein is governed by the Terms of Use. When you use this site you acknowledge that you have read the Terms of Use and that you accept and will be bound by the terms hereof and such terms as may be modified from time to time.
All text, graphics, audio, design and other works on the site are the copyrighted works of nasscom unless otherwise indicated. All rights reserved.
Content on the site is for personal use only and may be downloaded provided the material is kept intact and there is no violation of the copyrights, trademarks, and other proprietary rights. Any alteration of the material or use of the material contained in the site for any other purpose is a violation of the copyright of nasscom and / or its affiliates or associates or of its third-party information providers. This material cannot be copied, reproduced, republished, uploaded, posted, transmitted or distributed in any way for non-personal use without obtaining the prior permission from nasscom.
The nasscom Members login is for the reference of only registered nasscom Member Companies.
nasscom reserves the right to modify the terms of use of any service without any liability. nasscom reserves the right to take all measures necessary to prevent access to any service or termination of service if the terms of use are not complied with or are contravened or there is any violation of copyright, trademark or other proprietary right.
From time to time nasscom may supplement these terms of use with additional terms pertaining to specific content (additional terms). Such additional terms are hereby incorporated by reference into these Terms of Use.
Disclaimer
The Company information provided on the nasscom web site is as per data collected by companies. nasscom is not liable on the authenticity of such data.
nasscom has exercised due diligence in checking the correctness and authenticity of the information contained in the site, but nasscom or any of its affiliates or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this site. The information from or through this site is provided "as is" and all warranties express or implied of any kind, regarding any matter pertaining to any service or channel, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement are disclaimed. nasscom and its affiliates and associates shall not be liable, at any time, for any failure of performance, error, omission, interruption, deletion, defect, delay in operation or transmission, computer virus, communications line failure, theft or destruction or unauthorised access to, alteration of, or use of information contained on the site. No representations, warranties or guarantees whatsoever are made as to the accuracy, adequacy, reliability, completeness, suitability or applicability of the information to a particular situation.
nasscom or its affiliates or associates or its employees do not provide any judgments or warranty in respect of the authenticity or correctness of the content of other services or sites to which links are provided. A link to another service or site is not an endorsement of any products or services on such site or the site.
The content provided is for information purposes alone and does not substitute for specific advice whether investment, legal, taxation or otherwise. nasscom disclaims all liability for damages caused by use of content on the site.
All responsibility and liability for any damages caused by downloading of any data is disclaimed.
nasscom reserves the right to modify, suspend / cancel, or discontinue any or all sections, or service at any time without notice.
For any grievances under the Information Technology Act 2000, please get in touch with Grievance Officer, Mr. Anirban Mandal at data-query@nasscom.in.
The evolution of decentralized distributed ledger technology may be attributed to bitcoin, but in all honesty, Ethereum became the true harbinger of the said revolution. When bitcoin at its core still remains a distributed ledger, a platform to generate its native currency (BTC), Ethereum broke the norm by going beyond the expected capabilities. Simply put, Ethereum is a distributed state machine.
The innovative programmable Ethereum blockchain is not just a platform to create ETH; it allows users to perform a myriad of functions like creating decentralized applications and generating smart contracts. All the said functionalities are made possible with the help of EVM, otherwise known as Ethereum Virtual Machine.
Often termed the “backbone of the Ethereum network,” EVM is a runtime environment where all Ethereum accounts and smart contracts reside. It allows the generation of smart contracts with the help of a programming language called Solidity. Smart contracts are generated for the development of programs using Dapps. All this is possible with Ethereum virtual machines.
EVM has been long pitched as a program for beginners as operating it requires a basic understanding and knowledge of terms such as bytes, memory, stack, and blockchain concepts such as Merkel tree, hash functions, and proof of work.
Elements that make EVM
However, to understand the basics and workings of EVM, one needs an in-depth knowledge of the elements that make up an Ethereum virtual machine.
The concept of Virtual machines and their components: Virtual machines, Smart Contracts, Machine State, Solidity, Opcodes, and Gas
Virtual machines are virtual codes that are used to execute programs and deploy applications. Just like any tangible physical computer, they have all the relevant components such as CPU, memory, and storage and can be connected to the internet. Working on top of multiple operating systems, they work on higher abstractions. As we know, Eth nodes enables the creation of smart contracts, which is a more powerful protocol that enables transactions. Another noteworthy factor is that EVM is completely siloed and has no access to any files on the network or processes. Now, every participating node on the Ethereum network runs EVM to maintain the consensus.
Smart contracts are pre-written lines of codes that execute transactions sans any intermediary. Smart Contracts over the Ethereum ecosystem are written in Solidity code, which cannot be altered or changed, making them a secure way of conducting transactions. Whenever a contract is executed, EVM’s state is modified.
EVM is also referred to as a “statemachine” as it gives a picture of the current state. With every new block added, abetted by the constant new transactions, EVM works as a virtual central processing unit that executes and displays the speed of the execution process. Simply put, EVM in the Ethereum ecosystem determines the rules for computing transactions and changing the current state of the block and network. Also, EVM on its own doesn’t possess the ability to process Solidity; therefore, smart contract bytecode is consolidated to machine-level instructions called Opcodes that further execute certain stack operations. At an estimate, there are approximately 141 opcodes in EVM.
To run the opcodes on EVM, a certain amount of Gas is required. Gas is the transaction fee for processing the smart contract’s operations performed by nodes on the Ethereum network. The purpose of applying a gas fee is, firstly, to compensate miners for their services. Secondly, to gaslight any attempt by a hacker to stop computing actions or slow down the network’s speed by spamming the network with unwarranted transactions. And finally, to avoid any computational wastage of codes or accidental infinite loops. It is pertinent to set up a limit of computational codes for each transaction to bypass such issues. Each opcode has a gas cost attached to it, depending upon the complexity of the opcode. More complexity, the higher the gas fee.
Gas limit is the amount of fee a user is able or willing to pay for the processing and validating of a transaction. Moreover, Gas that is not used in a transaction is returned to the user, which is definitely an upside in the system.
The London Upgrade was introduced on 5th August 2021 to transform the transaction fee mechanism on Ethereum. The benefits of the upgrade included superior gas estimation, speedier transactions, and balancing ETH issuance by burning a certain percentage of the transaction fee.
Account abstraction on Ethereum
There are two types of accounts atop Ethereum – External accounts and Contract accounts. The basic difference between the two is that external account owners hold private keys to be able to execute transactions using ETH, and they are outside the gambit of EVM. In comparison, contract accounts are smart contracts living in EVM. Now both the accounts have equal status under EVM. Account abstraction means treating both accounts as one account- a contract account. The idea is that the transaction process will completely transfer to EVM and no longer be on the blockchain environment. Account abstraction is a feature that would be implemented in Ethereum 2.0
What is Turing completeness in Ethereum?
Turing completeness as a concept means a machine’s ability to process data. A set of instructions or a programming language is said to be Turing complete, given its ability to stimulate a Turing or an abstract machine. According to the Ethereum yellow paper, EVM is defined as “Quasi-Turing” complete.
It is assumed that EVM can complete any given, even the most complicated computations, which is the key feature of being Turing-complete. However, it’s virtually impossible to predict if a particular transaction will be completed. Therefore EVM has a terminating mechanism in place. Also, gas or transaction fee is extracted for executing smart contracts. So EVM has the ability to abort a transaction when the Gas runs out, making it quasi-Turing complete.
Benefits of Ethereum virtual machines
EVM facilitates decentralised applications’ creation, allowing any user to develop them without discrimination.
EVM is compatible with other public and private blockchains for the development of decentralized applications
EVM facilitates creating ERC- 721 tokens and developing smart contracts to create NFTs or non-fungible tokens. Anyone can create these virtual assets and sell them on NFT marketplaces, a concept that was unheard of a few years ago.
Challenges of Ethereum virtual machines
EVM isn’t completely decentralized, as assumed by many. With the rise of BaaS services, many Ethereum nodes are being hosted via third-party cloud-based servers, which are more centralized than decentralized. Assuming that the service provider shuts their server down will effectively bring down the nodes. Such an event can cause a lot of damage to the network.
For all intent and purposes, EVM does require certain technical knowledge and familiarity with programming languages
The biggest drawback for Ethereum users is the preposterously high transaction fee, especially when network traffic is high. The larger transactions may not suffer much, but smaller ones become the victim of congestion. Such network chokes can adversely affect dApps development. Too many users using smart contracts and thereby executing corresponding transactions can considerably slow the network down, even bringing it to a halt.
Final thoughts
Ethereum virtual machines, in a way, have helped create a parallel economy by making Ethereum move beyond the distributed ledger state. Undoubtedly, many benefits of EVM are countered by challenges, making it less than a perfect system. However, with Ethereum 2.0 in the offing, EVM mechanisms relating to transactions speed, high Gas, or complexity of the transactions are expected to go under a massive upscaling.
About The Author
Dr. Ravi Chamria is co-founder CEO of Zeeve Inc, an Enterprise Blockchain company. He has an experience of 18+ years in IT consulting spanning across Fintech, InsureTech, Supply Chain and eCommerce. He is an executive MBA from IIM, Lucknow and a prolific speaker on emerging technologies like Blockchain, IoT and AI/ML.
Passionate About: Blockchain, Supply Chain Management, Digital Lending, Digital Payments, AI/ML, IoT
That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.
Zeeve is an enterprise-grade Blockchain Infrastructure Automation Platform. Join the growing list of clients that trust us with their Blockchain initiatives
Maintaining secure access to sensitive information is a challenge that keeps more than a few members of the medical information technology industry up at night.The data kept, if breached, has the potential to destroy patients’ lives while ruining…
What is a Blockchain?A Blockchain is a distributed database that handles a rigorous list of records, (termed as blocks), safe from tampering.Blockchain public ledgers record transactions between two parties in a verifiable and permanent manner.…
I came across an interesting answer, would be glad to come across any other contrarion or complimentary views.This occurs outside of blockchain as well in the context of a “break the glass” scenario https://hipaa.yale.edu/security/break-glass-…
I am working on developing a whitepaper for creating a Blockchain ecosystem for Home care/ Elder. Need to connect with peers who are already working towards this and maybe Collaborate. (By 2030, older persons will outnumber children aged 0-9 years…
Patient satisfaction is not a clearly defined concept, although it is identified as an important quality outcome indicator to measure success of the services delivery systemThere is no clear consensus between the literatures on how to define the…
