The Ethereum protocol itself exists solely for the purpose of keeping the continuous, uninterrupted, and immutable operation of this special state machine; It's the environment in which all Ethereum accounts and smart contracts live. At any given block in the chain, Ethereum has one and only one 'canonical' state, and the EVM is what defines the rules for computing a new valid state from block to block.
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Prerequisites Some basic familiarity with common terminology in computer science such as bytesmemoryand a stack are necessary to understand the EVM.
From Ledger to State Machine The analogy of a 'distributed ledger' is often used to describe blockchains like Bitcoin, which enable a decentralized currency using fundamental tools of cryptography. A cryptocurrency behaves like a 'normal' currency because of number of transactions in a bitcoin block rules which govern what one can and cannot do to modify the ledger. For example, a Bitcoin address cannot spend more Bitcoin than it has previously received.
These rules underpin all transactions on Bitcoin and many other blockchains. While Ethereum has its own native cryptocurrency Ether that follows almost exactly the same intuitive rules, it also enables a much more powerful function: smart contracts. For this more complex feature, a more sophisticated analogy is required.
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Instead of a distributed ledger, Ethereum is a distributed state machine. Ethereum's state is a large data structure which holds not only all accounts and balances, but a machine state, which can change from block to block according to a pre-defined set of rules, and which can execute arbitrary machine code.
The specific rules of changing state from block to block are defined by the EVM. Transactions Transactions are cryptographically signed instructions from accounts.
There are two types of transactions: those which result in message calls and those which result in contract creation. Contract creation results in the creation of a new contract account containing compiled smart contract bytecode.
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Whenever another account makes a message call to that contract, it executes its bytecode. Each item is a bit word, which was chosen for maximum compatibility with the SHA hash scheme.
During execution, the EVM maintains a transient memory as a word-addressed byte arraywhich does not persist between transactions. Contracts, however, do contain a Merkle Patricia storage trie as a word-addressable word arrayassociated with the account in question and part of the global state. Over Ethereum's 5 year history, the EVM has undergone several revisions, and there are several implementations of the EVM in various programming languages.
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All Ethereum clients include an EVM implementation. Additionally there are multiple standalone implementations, including:.
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