VM: The Invisible Engine Behind Web3

Main Highlights

• Virtual Machines (VM) enable the execution of different operating systems or applications on a single device, eliminating the need for additional hardware
• They are essential tools for software validation, safe experimentation of alternative environments, and isolation of potentially harmful programs
• The Ethereum Virtual Machine (EVM) functions as a fundamental infrastructure for executing smart contracts and DApps on global decentralized networks
• Despite the versatility and control offered, VMs have limitations: performance overhead, high resource consumption, and the need for technical expertise

Introduction

Imagine running Windows on a MacBook or trying Linux without altering the native system or purchasing new equipment. VMs make this possible through isolated environments where multiple operating systems and applications coexist securely.

This capability has transcended personal computers. In blockchain networks, VMs act as the driving mechanism for smart contracts and decentralized applications (DApps), allowing thousands of nodes to process and validate instructions simultaneously.

Unveiling the Virtual Machine

A VM functions as a simulated computer, configurable in just a few clicks, without adding physical components. You can install an operating system, manage files, run programs, and access the internet — all operating within a host server, also called the host machine.

The server system works behind the scenes providing computational power: CPU (CPU), RAM, and disk space. This architecture is particularly valuable when you need to use specific software for a particular operating system.

The Mechanism: How a VM Works

A component called a hypervisor orchestrates this ecosystem. It captures physical resources of the machine — CPU, RAM, storage — and allocates them, allowing multiple VMs to share the same infrastructure simultaneously.

There are two main categories of hypervisors:

Type 1 (Bare-metal): Installed directly on physical hardware, prevalent in data centers and cloud platforms. This architecture optimizes performance and operational efficiency.

Type 2 (Hosted): Runs on a conventional operating system, functioning as a standard application. Suitable for testing and development scenarios.

Once configured, the VM starts as an independent computer: you install software, browse the web, develop applications.

Why Adopt a Virtual Machine?

Testing new environments: Different operating systems can be evaluated without altering the main equipment. It’s like having a safe sandbox for experimentation.

Protection against malicious code: Suspicious files or unknown applications can be run in isolation. If malware or crashes are encountered, your main machine remains intact.

Rescuing legacy software: Programs developed for Windows XP or other obsolete systems can be re-executed via VMs recreating those environments, bypassing incompatibilities on modern devices.

Multi-platform development: Developers test code simultaneously across various operating systems, simulating behaviors of new applications in heterogeneous environments.

Cloud infrastructure: Services like AWS, Azure, and Google Cloud are based on VMs. Each cloud instance is a VM hosted in remote data centers, ready to host websites, applications, or databases.

VM in the Blockchain Universe: The Heart of Web3

While traditional VMs are isolated testing environments, blockchain virtual machines serve as the core processor of smart contracts in decentralized networks.

The Ethereum Virtual Machine (EVM) allows developers to code smart contracts in Solidity, Vyper, or Yul, deploying them on Ethereum and EVM-compatible networks. It ensures all network validators apply identical rules when processing or creating contracts.

Different blockchains implement their own virtual machines according to their architectural goals:

WebAssembly-based networks (WASM): NEAR and Cosmos use WASM-based VMs, supporting smart contracts in multiple programming languages, promoting flexibility.

MoveVM: Sui implements MoveVM, executing contracts written in the Move language, focusing on security and efficiency.

Solana Virtual Machine (SVM): Solana employs a custom execution environment (SVM) designed to process transactions in parallel, managing high volumes of simultaneous activity.

Virtual Machine in Action: Practical Examples

You interact with VMs constantly when using DApps, often without realizing it:

DeFi transactions: Swapping tokens on decentralized protocols involves executing smart contracts on the EVM.

NFT minting: The VM runs code that records ownership of each digital asset, updating history when you buy or transfer, ensuring ownership accuracy.

Layer 2 scalability: Second-layer solutions employ specialized VMs. For example, zkEVM allows zk-rollups to execute smart contracts using zero-knowledge proofs (ZKP).

Challenges of a Virtual Machine

Performance penalty: VMs add an intermediate layer between hardware and code. This can reduce speed or require more computational resources compared to direct execution.

High operational costs: Maintaining VMs — especially in cloud infrastructures or blockchain networks — demands meticulous configuration, constant updates, and specialized technical knowledge.

Compatibility fragmentation: Smart contracts often tie to specific VM environments. Code developed for Ethereum needs rewriting or adaptation to operate on incompatible blockchains like Solana. Developers spend significant time porting applications across ecosystems.

Final Summary

Virtual Machines are the invisible backbone of modern computing — from PCs to blockchain infrastructure. They enable different operating systems to coexist, software to be tested securely, and single hardware to meet multiple needs. In Web3, VMs are the engine powering smart contracts and DApps on global networks.

Understanding how a VM works provides clarity on the internal mechanisms of platforms and DeFi tools we use daily, revealing the technological sophistication behind decentralization.

Related references:

• What is Modular Blockchain?
• How does Bitcoin’s Layer 2 Network work?
• Smart Contract Security Testing: The Essentials