Virtual machines: from traditional systems to blockchain ecosystems

Main Provisions

• Virtual machines create isolated computing environments, allowing multiple operating systems to operate simultaneously on a single physical hardware.
• VMs serve as a sandbox for safely working with unknown software, testing, and development without the risk of damaging the main system.
• In the blockchain, virtual machines function as executors of smart contracts, ensuring uniform execution of code across the entire network of nodes.
• The advantages of VM ( flexibility and isolation) are balanced by the drawbacks: additional resource load, complicated setup, and code compatibility issues.

Introduction

Imagine a situation: you need to try another operating system, but you do not want to change the current one on your computer or buy a new device. Or you need to test an unknown application, but you are afraid of viruses and system crashes. Virtual machines solve both problems by creating a secure environment within the main OS.

In cryptography and decentralized networks, VMs have taken on a different meaning. Here they serve as the foundation upon which smart contracts and decentralized applications stand, ensuring reliable and transparent execution of code on numerous independent computers.

Definition and Basic Concept

A VM is a software emulation of a physical computer. It operates as an independent machine within your main device, possessing its own operating system, file system, network access, and installed applications. All processes remain completely isolated from the host system.

The physical computer ( host ) provides the necessary resources for the virtual machine: CPU cycles, RAM, and disk space. As a result, the VM operates independently but does not require separate hardware.

Technical Mechanism: Hypervisor and Resource Management

The organization of virtual machine operations is handled by specialized software — the hypervisor. Its task is to allocate the physical resources of the computer so that multiple VMs can function simultaneously without conflicts.

Hypervisors are divided into two classes:

Type 1 Hypervisors (Bare-metal) They are installed directly on the physical hardware, bypassing the operating system. This approach provides maximum efficiency and performance, which is why type 1 hypervisors are common in data centers and cloud infrastructure.

Type 2 Hypervisors (Hosted) They work like a regular application on top of the existing OS. They are less resource-intensive and are better suited for local testing and development on a personal computer.

Practical Applications: Five Key Scenarios

Experimenting with other operating systems

VMs allow for safe exploration of alternative operating systems — whether it's different versions of Windows, macOS, various Linux distributions — without any consequences for the current system. This is perfect for users who want to expand their knowledge.

Protection against malware and unknown programs

If you need to open a file of unclear origin or try a program from an unreliable source, running it in a VM will protect the main device. Even if a virus infects the virtual machine, the host system will remain unharmed.

The use of outdated applications

Programs designed for older operating systems (Windows XP, older versions of Linux) can be run in a VM that recreates the necessary environment. This allows for the continued operation of critical legacy software.

Cross-platform development

Developers use VM for simultaneous testing of applications on different OSs, checking compatibility and code behavior in various environments.

Cloud Computing

Large cloud providers deploy VMs in remote data centers. Clients receive virtual machines for hosting websites, databases, mobile applications—without the need to own and maintain physical hardware.

Virtual Machines in Blockchain: Redefining the Concept

In the blockchain ecosystem, virtual machines take on a fundamentally different role. While traditional VMs are isolated environments for operating systems, VMs in crypto networks are interpreters and executors of smart contract code.

Ethereum Virtual Machine (EVM)

EVM is one of the most recognized examples. It allows developers to write smart contracts in the Solidity, Vyper, and Yul languages, and then deploy them to the Ethereum network or other EVM-compatible networks.

A critically important point: EVM ensures that every node in the network executes the same code in the same way. This creates conditions for true decentralization — no single node can alter the computation result to suit its own interests.

Diversity of VMs in alternative blockchains

Different networks choose their own virtual machines based on their priorities:

• NEAR and Cosmos use a WebAssembly-based VM that supports smart contract development in multiple programming languages.
• Sui uses MoveVM to execute contracts written in the specially designed Move language, ensuring the security of asset operations.
• Solana implements its own execution environment (SVM), processing transactions in parallel and handling extreme network loads.

How Virtual Machines Work in Everyday User Interaction

When you interact with decentralized applications, virtual machines operate in the background:

When trading through DeFi protocols When you perform a token swap on a decentralized exchange, the smart contracts running within the EVM handle the transaction, check balances, execute the exchange, and update the state of the blockchain.

When working with non-fungible tokens When an NFT is created or transferred, the virtual machine executes code that manages ownership rights over the digital asset. The VM updates the registry to reflect the change of ownership.

When using layer two solutions Level 2 rollups often utilize specialized virtual machines like zkEVM( to process multiple transactions off the main chain while maintaining security guarantees through zero-knowledge proofs.

Limitations and Challenges of Virtual Machines

) Decrease in performance The VM adds an additional layer of abstraction between the hardware and the executable code. This can lead to increased latency or consumption of more CPU cycles compared to direct execution on a physical machine.

Difficulty of management

Deploying, configuring, and maintaining VMs requires specialized knowledge. In large-scale infrastructure, this maintenance becomes an energy-intensive and costly process.

Code portability issues

Smart contracts are usually developed for a specific VM. Code written for EVM will not work in SVM or MoveVM without significant rework and adaptation. Developers have to create separate versions for each platform.

Conclusion

Virtual machines are a fundamental technology that plays a dual role. On traditional computers, they provide flexibility, security, and efficient use of hardware. In blockchain, they have transformed into smart contract executors, ensuring uniform and transparent execution of code across the decentralized network.

Even if you are not a programmer, understanding the principles on which virtual machines operate helps you better understand the architecture of DeFi protocols, the mechanism of interaction with the blockchain, and the reasons for the emergence of various optimization solutions in the ecosystem.