Virtual Machines: Hidden Engines Powering Blockchain

Introduction

Although an operating system (OS) is mutually exclusive in that it is either Windows, MacOS or Linux, etc. sometimes it is possible to run one OS on another. For example, there is a possibility to run Windows OS on MacOS, and Android OS on Windows OS. The purpose behind stacking the operating systems is to test an OS, isolate some risky software from the host OS, run an old version of an OS or to develop and test code across platforms. An EVM is used in blockchains because it provides a universal, reliable way to run smart contracts and ensures that every node on the network executes transactions in exactly the same way.

What is a Virtual Machine?

A virtual machine (VM) is essentially a different computer that lives inside your existing one. With just a few clicks, you can set it up without needing any extra physical hardware. Once running, it acts like a full-fledged computer. You can install an operating system, store files, run applications, and even browse the internet, and this is possible all within that virtual space. In the world of cryptocurrencies, smart contracts on blockchains are developed and run on virtual machines. The most common of them is Ethereum Virtual Machine (EVM).

Behind the scenes, it’s your main computer, known as the host, that makes this possible. To keep the VM running smoothly, the host shares its own resources like memory, processing power, and storage. This setup comes in handy when you need to work with a software that only runs on a different operating system than the one installed on your host.

How a VM Works

So how does a virtual machine actually work? At the center of the whole process is a special piece of software called a hypervisor. The hypervisor acts like a manager, taking the physical resources of your computer. These resources include components like the processor (CPU), memory (RAM), and storage. They are made to work in efficient division so that one or even several virtual machines can run at the same time.

There are two ways hypervisors are typically set up. Some are installed directly on the hardware itself, which is why they are often found in data centers and cloud environments where speed and efficiency matter most. Others run on top of your normal operating system, almost like any other app. These are more common for everyday use, testing, or development work. For example, you can enjoy android ecosystem on Windows OS by installing an app BlueStacks.

Once the hypervisor has done its job and your virtual machine is ready, you can treat it just like a physical computer. You can boot it up, and then install programs, use the internet, or even build and run applications, all inside that virtual space.

Virtual Machines in Blockchain Networks

Most people who use blockchain applications never contemplate the invisible infrastructure that makes everything run smoothly. Whether you are swapping tokens on a decentralized exchange, minting an NFT, or sending funds across a Layer 2 blockchain, a vital component is doing all the heavy tasks in the background. That component is the blockchain virtual machine.

In the traditional tech world, a virtual machine (VM) is basically an isolated sandbox. It allows developers to run software in a limited and controlled environment. This software is separate from the underlying hardware. On blockchain networks, however, VMs serve a very different purpose. They serve as the execution engines for smart contracts, the self-executing agents of code that enable decentralized applications to run 24/7 smoothly. Without VMs, there would be no reliable way for thousands of independent computers across the world to agree on how a contract should run.

Ethereum Virtual Machine

The Ethereum Virtual Machine (EVM) is the most well-known example of Blockchain VMs. Languages like Solidity, Vyper, or Yul can be used by developers to write contracts and deploy them on Ethereum as well as other EVM-compatible blockchains. The EVM ensures that every node process smart contracts in the exact same way, because it helps maintain consistency and security across the network.

Other VMs in Blockchain World

But Ethereum is not the only blockchain that has a virtual machine. Different blockchain networks design their own models to meet goals specific to their requirements. NEAR and Cosmos rely on WebAssembly-based VMs, known for their flexibility. These allow smart contracts to be written in several programming languages, which lowers the hurdles for developers who do not want to learn something entirely new. Meanwhile, the MoveVM, used by blockchains like Sui, gives more importance to the Move language to prioritize security in the execution of transactions. Solana takes a different route with its Solana Virtual Machine, optimized to process many transactions simultaneously. 

Although most users never interact with them directly, VMs are working constantly in the background. When you make a token swap on a DeFi platform like Uniswap, the EVM is executing the contract. If you mint a new NFT, the VM updates the ledger to show who owns it. Even advanced scaling solutions like zk-rollups depend on specialized VMs such as zkEVMs, which combine smart contract execution with cryptographic proofs to improve both efficiency and security.

Flaws of VMs

Yet, Virtual machines have certain disadvantages, too. VMs run code and manage smart contracts on borrowed components, which makes processes slower compared to running directly on hardware. Operational complexity results from maintaining VMs on large networks, requiring constant updates and specialized knowledge. Compatibility is another downside. A contract written for Ethereum will not run on Solana without substantial changes. It creates extra work for developers who want to reach multiple ecosystems.

Despite these challenges, blockchain VMs remain at the core of innovation in decentralized technology. They are the unsung heroes that make users trust code readily instead of middlemen. VMs create a world of financial products, digital ownership, and decentralized communities. While you may never see them directly, virtual machines are the silent engines that keep the blockchain economy moving.

Conclusion

In brief, virtual machines might go unnoticed, but they play a crucial role in modern technology. By making things simpler and safer behind the scenes, they help us build and use new kinds of computer programs and change how we trust and share information. Whether they’re powering the latest blockchain tools or letting people run software in a protected space, VMs keep improving quietly. Their real power lies in how they support everything from the background, showing that much of what makes technology work best is often invisible.