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What Is a Virtual Machine (VM)?
Key Takeaways
Virtual machines (VMs) let you run different operating systems or applications on the same device without extra hardware.
VMs are great for safely testing new software, trying out other systems, or isolating programs that might be risky.
VMs like the Ethereum Virtual Machine (EVM) enable smart contracts and decentralized applications (DApps) to run reliably across a global network of computers.
While VMs offer flexibility and control, they can come with trade-offs in performance, resource usage, and complexity.
Introduction
Have you ever wanted to run Windows on your MacBook or test a Linux app without changing your operating system or buying a separate computer? VMs let you do that by creating an isolated environment where different operating systems and applications can run safely. They’re also widely used in blockchain networks to support smart contracts and decentralized applications (DApps).
What Is a VM?
A VM is like a computer you can set up with just a few clicks, and no extra hardware is needed. You can install an operating system, save files, run apps, and connect to the internet, but you're running it inside your existing computer, also known as the host.
Your host system does the heavy lifting behind the scenes, lending out its memory, processing power, and storage so the VM can run smoothly. This is especially useful if you need to use software that's only available on another operating system.
How Do VMs Actually Work?
Behind the scenes, a piece of software called a hypervisor manages all of this. The hypervisor takes your computer’s physical resources like CPU, Random Access Memory (RAM), and storage and divides them up so multiple VMs can use them at once.
There are two main types of hypervisors:
Type 1 (Bare-metal): These are installed directly on hardware and are often used in data centers or cloud platforms. They’re built for performance and efficiency.
Type 2 (Hosted): These run on top of your regular operating system (like apps) and are suited for testing and development.
Once a VM is set up, you can start it just like a real computer and install software, browse the web, or build applications.
Why Use a VM?
1. Test new operating systems
With a VM, you can test different operating systems without making any changes to your main computer. It’s like trying out a new system in a safe, separate space.
2. Isolate risky software
Need to open a file you are not sure about or test an unfamiliar app? Running it in a VM keeps your computer protected, so if you encounter malware or a system crash, your main computer won’t be affected.
3. Run legacy or unavailable software
Some programs only work on older systems like Windows XP. A VM can recreate that environment, letting you keep using software that might not run on today’s devices.
4. Develop and test code across platforms
VMs make it easier for developers to test code on different operating systems and simulate how new applications will behave in different environments.
5. Power the cloud
Many cloud services (like AWS, Azure, and Google Cloud) are built on VMs. When you launch a cloud instance, you are starting a VM in a remote data center that is ready to host websites, apps, or databases.
How Blockchain Networks Use VMs
While traditional VMs are isolated sandboxes, blockchain virtual machines act as the engine that runs smart contracts in blockchain networks. The Ethereum Virtual Machine (EVM) lets developers write smart contracts in languages like Solidity, Vyper, and Yul and deploy them on Ethereum and other EVM-compatible networks. The EVM ensures that every node on the network follows the same rules when creating or interacting with smart contracts.
Blockchain networks implement their own types of VMs based on design goals. Some focus on speed and scalability, while others aim to be more secure or flexible for developers. Networks like NEAR and Cosmos use WebAssembly (WASM)-based VMs, which support smart contracts written in multiple programming languages.
Other blockchain networks like Sui use MoveVM, which executes smart contracts written in the Move language. The Solana blockchain uses a custom runtime, often called the Solana Virtual Machine (SVM), that is designed to process transactions in parallel and handle large amounts of network activity.
Virtual Machines in Action
You might not notice them, but VMs are working behind the scenes every time you interact with decentralized applications (DApps).
If you’re using a Decentralized Finance (DeFi) application like Uniswap to swap tokens, your transactions are being handled by smart contracts running inside the EVM.
If you’re minting an NFT, the VM is running the code that keeps track of who owns each NFT. When you make a purchase or transfer, the VM updates the records so ownership of the NFT stays accurate.
If you’re using a Layer 2 rollup, your transactions may be carried out by a specialized VM, such as a zkEVM. zkEVMs make it possible for zk-rollups to run smart contracts while benefiting from zero-knowledge proofs (ZKP).
Limitations of VMs
1. Performance overhead: VMs add an extra layer between the hardware and the code being executed. This can slow things down or require more computing resources compared to running apps directly on a physical machine.
2. Operational complexity: Maintaining VMs (especially across cloud infrastructure or blockchain networks) takes a lot of effort to set up and update. This will take time and often requires specialized tools and knowledge.
3. Compatibility: Smart contracts are often designed for a specific VM environment. Code written for smart contracts on Ethereum will need to be rewritten or adapted to work on other non-compatible blockchains like Solana. This means developers need to spend extra time and effort if they want to launch the same app on multiple environments.
Closing Thoughts
VMs play an important role in how both regular computers and blockchain systems operate. They let you run different operating systems, test software safely, and use the same hardware for multiple tasks.
Virtual machines are also used in blockchain networks to power smart contracts and decentralized apps. Even if you are not an expert, knowing how VMs work can give you a better sense of what’s happening under the hood in many of the DeFi tools and platforms we use.
Further Reading
What Are Modular Blockchains?
What Are Bitcoin Layer 2 Networks?
What Is a Smart Contract Security Audit?
Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
Virtual machines (VMs) let you run different operating systems or applications on the same device without extra hardware.
VMs are great for safely testing new software, trying out other systems, or isolating programs that might be risky.
VMs like the Ethereum Virtual Machine (EVM) enable smart contracts and decentralized applications (DApps) to run reliably across a global network of computers.
While VMs offer flexibility and control, they can come with trade-offs in performance, resource usage, and complexity.
Introduction
Have you ever wanted to run Windows on your MacBook or test a Linux app without changing your operating system or buying a separate computer? VMs let you do that by creating an isolated environment where different operating systems and applications can run safely. They’re also widely used in blockchain networks to support smart contracts and decentralized applications (DApps).
What Is a VM?
A VM is like a computer you can set up with just a few clicks, and no extra hardware is needed. You can install an operating system, save files, run apps, and connect to the internet, but you're running it inside your existing computer, also known as the host.
Your host system does the heavy lifting behind the scenes, lending out its memory, processing power, and storage so the VM can run smoothly. This is especially useful if you need to use software that's only available on another operating system.
How Do VMs Actually Work?
Behind the scenes, a piece of software called a hypervisor manages all of this. The hypervisor takes your computer’s physical resources like CPU, Random Access Memory (RAM), and storage and divides them up so multiple VMs can use them at once.
There are two main types of hypervisors:
Type 1 (Bare-metal): These are installed directly on hardware and are often used in data centers or cloud platforms. They’re built for performance and efficiency.
Type 2 (Hosted): These run on top of your regular operating system (like apps) and are suited for testing and development.
Once a VM is set up, you can start it just like a real computer and install software, browse the web, or build applications.
Why Use a VM?
1. Test new operating systems
With a VM, you can test different operating systems without making any changes to your main computer. It’s like trying out a new system in a safe, separate space.
2. Isolate risky software
Need to open a file you are not sure about or test an unfamiliar app? Running it in a VM keeps your computer protected, so if you encounter malware or a system crash, your main computer won’t be affected.
3. Run legacy or unavailable software
Some programs only work on older systems like Windows XP. A VM can recreate that environment, letting you keep using software that might not run on today’s devices.
4. Develop and test code across platforms
VMs make it easier for developers to test code on different operating systems and simulate how new applications will behave in different environments.
5. Power the cloud
Many cloud services (like AWS, Azure, and Google Cloud) are built on VMs. When you launch a cloud instance, you are starting a VM in a remote data center that is ready to host websites, apps, or databases.
How Blockchain Networks Use VMs
While traditional VMs are isolated sandboxes, blockchain virtual machines act as the engine that runs smart contracts in blockchain networks. The Ethereum Virtual Machine (EVM) lets developers write smart contracts in languages like Solidity, Vyper, and Yul and deploy them on Ethereum and other EVM-compatible networks. The EVM ensures that every node on the network follows the same rules when creating or interacting with smart contracts.
Blockchain networks implement their own types of VMs based on design goals. Some focus on speed and scalability, while others aim to be more secure or flexible for developers. Networks like NEAR and Cosmos use WebAssembly (WASM)-based VMs, which support smart contracts written in multiple programming languages.
Other blockchain networks like Sui use MoveVM, which executes smart contracts written in the Move language. The Solana blockchain uses a custom runtime, often called the Solana Virtual Machine (SVM), that is designed to process transactions in parallel and handle large amounts of network activity.
Virtual Machines in Action
You might not notice them, but VMs are working behind the scenes every time you interact with decentralized applications (DApps).
If you’re using a Decentralized Finance (DeFi) application like Uniswap to swap tokens, your transactions are being handled by smart contracts running inside the EVM.
If you’re minting an NFT, the VM is running the code that keeps track of who owns each NFT. When you make a purchase or transfer, the VM updates the records so ownership of the NFT stays accurate.
If you’re using a Layer 2 rollup, your transactions may be carried out by a specialized VM, such as a zkEVM. zkEVMs make it possible for zk-rollups to run smart contracts while benefiting from zero-knowledge proofs (ZKP).
Limitations of VMs
1. Performance overhead: VMs add an extra layer between the hardware and the code being executed. This can slow things down or require more computing resources compared to running apps directly on a physical machine.
2. Operational complexity: Maintaining VMs (especially across cloud infrastructure or blockchain networks) takes a lot of effort to set up and update. This will take time and often requires specialized tools and knowledge.
3. Compatibility: Smart contracts are often designed for a specific VM environment. Code written for smart contracts on Ethereum will need to be rewritten or adapted to work on other non-compatible blockchains like Solana. This means developers need to spend extra time and effort if they want to launch the same app on multiple environments.
Closing Thoughts
VMs play an important role in how both regular computers and blockchain systems operate. They let you run different operating systems, test software safely, and use the same hardware for multiple tasks.
Virtual machines are also used in blockchain networks to power smart contracts and decentralized apps. Even if you are not an expert, knowing how VMs work can give you a better sense of what’s happening under the hood in many of the DeFi tools and platforms we use.
Further Reading
What Are Modular Blockchains?
What Are Bitcoin Layer 2 Networks?
What Is a Smart Contract Security Audit?
Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.