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Ethereum Virtual Machine (EVM) Meaning

The Ethereum Virtual Machine (EVM) is the execution environment that powers Ethereum and many other blockchains. It can be thought of as a global, decentralized computer that runs smart contracts exactly as written, ensuring that the same inputs always produce the same outputs across thousands of independent nodes. Every Ethereum node runs an instance of the EVM, and consensus is achieved by agreeing on the resulting state after transactions and smart contracts are executed.

The EVM is responsible for maintaining Ethereum’s state, which includes account balances, smart contract code, and storage. When a transaction is submitted-such as sending ETH, interacting with a DeFi protocol, or minting an NFT-the EVM processes the instructions step by step. These instructions are expressed in low-level bytecode that is generated when developers compile smart contracts written in languages like Solidity or Vyper.

Because the EVM is deterministic and sandboxed, smart contracts cannot access external systems or data directly, which protects the network from unpredictable behavior and security risks. One of the EVM’s defining features is its gas model.

Every operation has a predefined computational cost, paid in gas and denominated in ETH. This mechanism prevents infinite loops, allocates network resources fairly, and creates economic incentives for efficient code.

From a developer perspective, the EVM’s standardization is critical: the same contract can run on Ethereum mainnet and on any EVM-compatible chain, such as Polygon, Arbitrum, Optimism, or Avalanche. This portability has driven massive ecosystem growth, tooling reuse, and cross-chain expansion.

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Finery Markets BVI Limited (“Finery Markets”) provides software, technology infrastructure, and related Information and Communication Technology (ICT) services on a Software-as-a-Service (“SaaS”) basis. Finery Markets acts solely as a software vendor and does not operate a trading platform, does not intermediate, match, execute, clear, or settle transactions, and does not engage in any activities that would require regulatory authorisation under applicable laws.

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