Ethereum ecosystems and essentials
Let us look at some of the essentials that we need to know about Ethereum. These fundamentals will help you align with the rest of the book and are required to understand the code and other advanced topics covered later in this book.
The Ethereum virtual machine
The Ethereum virtual machine (EVM) is an execution and runtime environment that executes smart contracts on the blockchain network. It is a virtual machine that can execute arbitrary computations, similar to the way a traditional computer’s CPU executes instructions. The EVM is referred to as a Turing-complete virtual machine very often, meaning it can run any program that can be expressed in code.
The EVM is responsible for executing the bytecode that makes up a smart contract, which is generated from the contract’s high-level programming language code. It processes the smart contract’s code and performs the required operations, such as updating the contract...