smart contracts</strong></a>&nbsp;happen.</p>\n<p>The EVM's purpose is to add a number of new processes to the blockchain so that users have fewer problems with the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-distributed-ledger/">distributed ledger</strong></a>. To ensure blockchain consensus, every Ethereum node runs on the EVM. <strong>The code inside the EVM is entirely isolated</strong>, which means it has no access to the network, file system, or any other processes.</p>\n<p><strong>Externally Owned Accounts (EOA) and</strong> <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-contract-account/">Contract Accounts</strong></a> are the two types of accounts that are recognized equally by the EVM. Account abstraction attempts to convert these two into a single account because EOAs and Contract Accounts are interchangeable and work pretty much the same. 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Harmony</strong>. This means that Harmony&rsquo;s blockchain uses Effective Proof-of-Stake as a replacement for <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-proof-of-work-pow/">Proof-of-Work (PoW)</strong></a>.&nbsp;</p>\n<p>EPoS is an improved version that <strong>guarantees that Harmony&rsquo;s blockchain remains <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-decentralization/">decentralized by implementing random state <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-sharding/">sharding. Its goal is to make sure that major stakeholders can&rsquo;t centralize power. This is done by making the validators that hold a bigger number of stake tokens than others must also run a bigger number of <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-node/">nodes.&nbsp;

/n

Effective Proof-of-Stake</strong> is considered to be <strong>the first Proof-of-Stake mechanism that directs its attention to the sharding process</strong>.</p>\n<p>In order to make sense of EPoS, you must have a clear understanding of Proof-of-Stake.</p>\n<p>Essentially, Proof-of-Stake is a consensus mechanism implemented within the blockchain that allows the production of blocks while also validating transactions and eliminating the problem of <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-double-spending/">double-spending. It can be considered a sort of alternative to Proof-of-Work.</p>","level":"easy","meta_title":"What is Effective Proof-of-Stake (EPoS)? Definition & Meaning | Crypto Wiki","meta_description":"Effective Proof-of-Stake (EPoS) meaning: Effective Proof-of-Stake (EPoS) - is a variant of the Proof-of-Stake consensus mechanism introduced by Harmony.","meta_keywords":null,"language":"en","created_at":"2022-04-06T13:21:53.000000Z","updated_at":"2022-05-13T14:32:24.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-effective-proof-of-stake-epos"},"prevSection":{"id":337,"original_id":null,"author_id":42,"translator_id":null,"title":"What is Ether?","slug":"what-is-ether","section":"E","keyword":"Ether","status":"published","definition":"the cryptocurrency that is used in the Ethereum blockchain.","content":"<p>The terms Ether and <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/buy-ethereum-eth/">Ethereum are usually used interchangeably. However, these two terms are not the same thing. Ethereum refers to a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-blockchain/">blockchain network while Ether is the world&rsquo;s second-largest <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-cryptocurrency/">cryptocurrency that operates in it. Ether keeps this blockchain network running efficiently.</p>\n<p>It can be used as <strong>a medium of exchange</strong>, allowing crypto users to freely purchase and sell goods and services. Besides, Ether can be used to pay for a variety of transaction fees and <strong>computational services</strong>. In addition, it is essential for improving the development of <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-are-decentralized-applications-dapps/">decentralized apps</strong></a> on the Ethereum network.</p>\n<p>It&rsquo;s not hard to find Ether because you can purchase it on almost every major <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/best-cryptocurrency-exchange/">cryptocurrency exchange platform</strong></a>. Besides, a number of tokens (referred to as <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-erc-20/">ERC-20 tokens</strong></a>) with their own unique value have been created <strong>on the same blockchain</strong>.</p>\n<p>Previously, new coins were created every time miners verified a new block of transactions, however, the Ethereum platform has taken a brave step of switching to a&nbsp;<a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-proof-of-stake-pos/">Proof-of-Stake protocol</strong></a>.</p>","level":"easy","meta_title":"What is Ether? Definition & Meaning | Crypto Wiki","meta_description":"Ether meaning: Ether - the cryptocurrency that is used in the Ethereum blockchain.","meta_keywords":null,"language":"en","created_at":"2022-03-14T15:56:21.000000Z","updated_at":"2022-05-13T14:32:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-ether"},"currentChapter":"E","currentSection":"what-is-ethereum-virtual-machine-evm","chapterTitle":"E","readingLevel":"easy"},"url":"/crypto/learn/crypto-terms/what-is-ethereum-virtual-machine-evm","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0">

Crypto Terms: Letter E

What is Ethereum Virtual Machine (EVM)?

Ethereum Virtual Machine (EVM) MEANING:
Ethereum Virtual Machine (EVM) - a Turing-complete blockchain-based software that executes code exactly the way it was intended.
Easy
1 minute

Let's find out Ethereum Virtual Machine (EVM) meaning, definition in crypto, what is Ethereum Virtual Machine (EVM), and all other detailed facts.

Ethereum Virtual Machine (EVM) is a computation engine that functions as a decentralized computer with millions of projects to be executed. It acts as the virtual machine that drives the entire Ethereum operating system where task execution and smart contracts happen.

The EVM's purpose is to add a number of new processes to the blockchain so that users have fewer problems with the distributed ledger. To ensure blockchain consensus, every Ethereum node runs on the EVM. The code inside the EVM is entirely isolated, which means it has no access to the network, file system, or any other processes.

Externally Owned Accounts (EOA) and Contract Accounts are the two types of accounts that are recognized equally by the EVM. Account abstraction attempts to convert these two into a single account because EOAs and Contract Accounts are interchangeable and work pretty much the same. Contract accounts are maintained in the smart contracts while EOAs are managed by private keys.

The majority of the source code of smart contracts is written in the Solidity programming language. A contract written in the smart-contract coding is transformed into what is known as bytecode. After that, it is transformed into opcodes that EVM interprets and uses the operation codes to accomplish specific tasks.

Thus, EVM is one of the biggest projects that run in the cryptocurrency world and it acts as a massive decentralized computer that executes various operations on the blockchain.