Why EVM Compatibility Matters More Than Ever

Ethereum touts the largest and most diverse public blockchain ecosystem, which makes Ethereum Virtual Machine (EVM) compatibility one of the key ingredients for blockchains to build a successful ecosystem, Horizen included. The EVM is a runtime environment that allows developers to create applications that can run on any Ethereum-compatible blockchain.

What Exactly is EVM?

At a high level, virtual machines create a level of abstraction between the executing code and the executing machine. As all Ethereum accounts and smart contracts live on EVM, the protocol exists solely to keep this immutable state machine constantly running.

Let’s get technical. The EVM defines the rules for computing a valid state from one block to the next. EVM itself is a massive data structure, called a modified Merkle Patricia Trie. This links all accounts with hashes and it is reducible to a root hash. Programs send code to the EVM to process transactions in Ethereum. These EVM opcodes perform standard stack operations and blockchain-specific stack operations. When smart contracts are compiled, they turn into EVM opcodes.

Leveraging the Ethereum Developer Community

EVM allows new blockchains to leverage the existing Ethereum developer community. These developers are already familiar with EVM and have built a wealth of applications that can run on it. When it comes to blockchain development, it’s important to have as many choices as possible.

By supporting EVM, an organization such as Horizen opens its platform up to a vast community of developers who can create applications that will drive its success. EVM compatibility is what enables us and other blockchains to tap into the wealth of existing developers who are used to working with Solidity. It’s estimated that there are over 200,000 developers with experience in Solidity.

Leveraging Existing DeFi Infrastructure

Another benefit of EVM compatibility is Ethereum’s DeFi infrastructure. There are well-established Ethereum smart contracts for an enormous range of blockchain-based products, such as automated market makers, decentralized exchanges, peer-to-peer lending protocols, stablecoins, and more.

By leveraging Ethereum’s DeFi infrastructure, new blockchains and dApps working with Horizen can get up and running quickly and easily. This is important for their success, as it lowers the barriers to entry and allows them to focus on building great applications.

Building Interconnected Ecosystems

Ultimately, compatibility with the EVM allows new blockchains to build interconnected ecosystems. This is important, as it connects them with the resources of other blockchains and enables them to benefit from their success.

It also empowers them to create a more diverse and inclusive blockchain community. Horizen, by supporting EVM and using code compatible with the Ethereum network, is helping to lower the barrier to entry for application developers. Essentially, the platform is building a more open and inclusive blockchain ecosystem that will benefit all participants.

Want to get more granular? Horizen offers additional insight on this topic and others by visiting Horizen Academy.

Also published here.