Blockchain & Cryptocurrency Glossary

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Virtual Machine

1 min read
Pronunciation
[ver‑choo-uhl muh-sheen]
Analogy
A virtual machine is like a simulated computer within your computer—it runs programs in isolation from the host system.
Definition
A software emulation of a computing environment that executes bytecode instructions in a deterministic, sandboxed context.
Key Points Intro
VMs enable smart contracts through:
Key Points

Bytecode execution: Runs compiled contract code.

Sandboxing: Prevents contracts from accessing host resources.

Determinism: Ensures identical results across nodes.

Gas metering: Tracks resource usage per instruction.

Example
The EVM executes smart contract bytecode on each Ethereum node, updating state according to transaction logic.
Technical Deep Dive
VM implements a stack machine with instructions (PUSH, SLOAD, CALL). It maintains memory, stack, storage, and program counter. Gas costs are assigned per opcode. VM errors (out‑of‑gas, invalid opcodes) revert state changes.
Security Warning
VM bugs (e.g., Parity multisig vulnerability) can freeze or corrupt contracts.
Caveat
VM performance impacts throughput; heavyweight VMs may slow block times.
Related Terms
EVM
WASM
Bytecode
Gas Optimization

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