Source: 4soft

Like physical or hardware machines, virtual machines (VMs) are used to execute actions. With blockchain, virtual machines are software-based replications of hardware computers used as the execution environment for smart contract-based transactions and activities.

Ethereum blockchain popularized virtual machines in the blockchain industry with the development of Ethereum Virtual Machine (EVM).

Types of Virtual Machines

1. Ethereum Virtual Machines (EVM): EVM is the most popular blockchain virtual machine in executing dapps and smart contracts within the Ethereum network. Ethereum blockchain smart contracts utilize a high-level programming language known as Solidity and these smart contracts are executed by the EVM. Some blockchains are 100% compatible with the EVM, meaning they can deploy smart contracts that are compatible with Ethereum, hence, they are referred to as EVM blockchains.

Examples of EVM-compatible blockchain are BNB Smart Chain, Avalanche, etc. Monad (yet to launch on mainnet) will also be EVM-compatible.

2. Solana Virtual Machine (SVM): SVM is the execution environment for Solana-based transactions. This is the underlying tech behind Solana’s ability to handle thousands of transactions per second. The secret weapon to this capability is the Sealevel which enables Solana’s parallelization. This parallelization feature which results in faster execution is lacking in the EVM and this gives Solana an edge in the industry.

3. Cosmos Virtual Machine (CosmWasm): this virtual machine is designed for the Cosmose blockchain ecosystem. CosmWasm allows for interoperability between other blockchains within the Cosmos ecosystem.

4. Fuel Virtual Machine (FuelVM): Fuel is an Ethereum-based layer 2 network, with v2 soon to launch on mainnet. The FuelVM is designed to be an execution ground for other blockchains to utilize, even though its primary purpose is to be launched as a rollup for the Ethereum network. FuleVM is used to execute smart contracts.

5. Rootstock Virtual Machine (RVM): Rootstock (RSK) is a protocol built on Bitcoin that allows developers to deploy smart contracts and decentralized apps on the Ethereum network. RSK virtual machine enables smart contract execution and it is highly compatible with Ethereum virtual machine.

6. Avalanche Virtual Machine (AVM): AVM is the virtual machine utilized by the Avalanche blockchain. It is best suited for carrying out smart contracts written in Solidity and other related programming languages. High throughput and low latency are the main goals of AVM for decentralized applications.

Features and Functions of Virtual Machines

Ability to facilitate the execution of smart contracts, thus, enabling dApps deployment on networks.
Virtual machines can be operated within any consensus mechanism.
Most virtual machines allow interoperability between other blockchains.

The inception of virtual machines brought about smart contract execution, which enables the activities present today within the blockchain ecosystem. It is important to note that VMs are the underlying technology behind blockchains’ activity.