The Ethereum network consists of several interconnected components, including Ether (ETH), smart contracts, decentralized applications (dApps) and the Ethereum Virtual Machine (EVM). Here's how Ethereum's "decentralized computer" works.

The Ethereum Virtual Machine (EVM) is the heart of the Ethereum network. It is responsible for executing smart contracts and dApps on the Ethereum network. But it extends far beyond the Ethereum ecosystem. Apps like Avalanche, Polygon and Fantom, for example, also rely on the blockchain network.

How does the Ethereum Virtual Machine work?

The EVM is the epitome of decentralization: it consists of countless computers, forming a network that spans the globe. Each of these computers uses software to enable the processing of smart contracts. This also makes the Ethereum Virtual Machine very different from conventional computers. For example, it uses special software and a decentralized network to process smart contracts.

Opcodes and gas costs

The programming language that programmers typically use for smart contracts on the Ethereum network is called Solidity. To understand this language, it must be translated into "bytecode," a combination of zeros and ones. Between bytecode and solidity, there is another language: "opcode."

This can represent operational code or instructions required by the EVM to execute smart contracts. Each of these opcodes costs a certain amount of ETH to execute. If you add up all the opcodes and multiply by their respective price, you get the total amount of gas needed to execute a smart contract. This means that the more complex a smart contract is, the more expensive it is to execute.

The key: interoperability

The big advantage of EVM: All blockchains that rely on it can communicate with each other. Smart contracts executed on Ethereum, for example, can also be executed on Polygon.