Virtual Machine: What Is It and Why Does It Matter?

Understand the Digital Infrastructure

The concept of virtual machine ( or VM) is more present in our lives than we realize. Whether using cloud applications, interacting with smart contracts on blockchain networks, or simply running a different operating system on your computer, virtual machines are operating discreetly behind the scenes, enabling this technological flexibility.

Definition: What Is a Virtual Machine?

Think of a virtual machine as a computer within another computer. It is an isolated environment that functions like a real device, but is entirely virtual. You can install a complete operating system, manage files, run programs, and access the internet – all happening in layers of software, without requiring additional hardware.

The host computer ( called host) shares its physical resources – processor, RAM, and storage space – to support these simultaneous virtual machines. This intelligent distribution of resources enables sophisticated multitasking without waste.

The Engine Behind: How Does It Work?

A specialized software called hypervisor orchestrates all this operation. There are two main categories:

Type 1 Hypervisors (Bare-metal): Installed directly on the hardware, typical of data centers and cloud platforms. Offer optimized performance and superior efficiency.

Type 2 Hypervisors (Hosted): Run as conventional applications on an already installed operating system. Suitable for development and exploratory testing.

Both fragment the computational capacity, allowing multiple virtual machines to operate independently and simultaneously.

Practical Applications on Personal Computer

Test Different Operating Systems

Do you want to try Windows on a MacBook without a permanent installation? A virtual machine solves this issue by creating a protected sandbox for exploration.

Security Risk Protection

Suspicious files or unknown software can be executed inside a VM without compromising the main system. Confined malwares cannot migrate to the host.

Compatibility with Legacy Software

Old programs developed for Windows XP or other obsolete systems gain new life in virtualized environments that recreate that specific configuration.

Multiplatform Development

Programmers validate code in various operating systems and analyze behaviors in different environments – all without having multiple physical devices.

Cloud Infrastructure

Services like AWS, Azure, and Google Cloud provide on-demand virtual machines in remote data centers, hosting websites, applications, or databases in seconds.

Virtual Machines in Blockchain Technology

While traditional virtual machines operate as isolated environments, virtual machines in blockchain networks act as processors for transactions and smart contracts.

A Ethereum Virtual Machine (EVM)

The EVM enables programmers to compose smart contracts in languages such as Solidity, Vyper, and Yul, implementing them on Ethereum and compatible networks. It ensures that all nodes in the network follow identical rules when processing and validating contracts.

Diversity of Blockchain Virtual Machines

Each blockchain network implements its own solutions according to design objectives. NEAR and Cosmos utilize WebAssembly-based machines (WASM), allowing contracts in multiple languages. Sui implements MoveVM to execute the Move language. Solana operates with its own custom runtime, the Solana Virtual Machine (SVM), optimized for processing high-volume parallel transactions.

Specialized VMs in Layer-2

Layer two solutions, such as zkEVMs, operate specialized virtual machines that leverage zero-knowledge proofs (ZKP) to validate compressed transactions while maintaining compatibility with existing smart contracts.

Virtual Machines in Action: Concrete Examples

In DeFi Applications: when you swap tokens on Uniswap, smart contracts running on the EVM process the transaction, validate balances, and update ownership atomically.

In NFT Issuance: the virtual machine executes the code that governs ownership, updating records with each purchase, transfer, or burn of non-fungible tokens.

In Rollups: transactions in layer 2 solutions are often processed by specialized virtual machines before being compressed and settled on the main network.

Limitations and Challenges

Performance Overhead: The additional layer between code and hardware can introduce latency or high resource consumption compared to native execution.

Operational Complexity: Maintaining virtual machines, especially in cloud infrastructure or blockchain networks, requires time, technical expertise, and sophisticated tools.

Compatibility Restrictions: Smart contracts designed for the EVM often require substantial rewriting to function on incompatible blockchains like Solana. Developers need to invest additional time to support multiple environments.

Final Reflection

Virtual machines are an essential foundation for both traditional computing infrastructure and blockchain ecosystems. They facilitate operational flexibility, provide secure isolation, allow risk-free testing, and enable global decentralized application ecosystems. Understanding how a virtual machine operates – even at a fundamental level – sheds light on the hidden complexity of the DeFi platforms and blockchain tools we use daily.