Discover how virtual machines (VM) work in the digital age

Key Points

• VMs allow multiple operating systems to run on a single device without the need for additional hardware investment.
• They are invaluable tools for ensuring security when testing unknown applications or new software environments.
• In the blockchain ecosystem, virtual machines such as the Ethereum Virtual Machine (EVM) are the heart that drives smart contracts and decentralized applications (dApps).
• While they offer great flexibility and control, VMs involve trade-offs in terms of performance, resource consumption, and increased operational complexity.

What is the true function of a virtual machine?

Imagine needing to run macOS on a Windows computer, or experimenting with Linux without touching your main operating system. Virtual machines make this possible by creating an isolated space where different platforms and software can coexist without mutual interference. Beyond personal desktops, these virtualized environments are essential in blockchain networks, where they power the execution of smart contracts and decentralized application ecosystems.

Anatomy of a Virtual Machine: How They Really Work

A VM is essentially a computer replica that you set up in a matter of minutes, completely independent of the physical hardware you own. You can install full operating systems, store data, run applications, and connect to the network, all within your host machine. The host system transparently provides its RAM, processing power, and storage for the VM to operate smoothly.

What happens in the background is coordinated by a critical component called a hypervisor. This specialized software takes the physical resources of your machine (processor, memory, disk) and intelligently partitions them, allowing multiple virtual machines to share these resources simultaneously.

There are two main categories of hypervisors:

• Type 1 Hypervisors (Without a base operating system): They are installed directly on the physical hardware, without intermediaries. They are the standard option in enterprise data centers and cloud computing platforms, optimized for maximum efficiency and performance.
• Type 2 Hypervisors ( with base operating system ): They operate like regular applications on your existing operating system. They are ideal for developers who need to test code or experiment with different environments without compromising the main system.

Why incorporate virtual machines into your workflow?

Safe exploration of new operating systems

You can access different platforms in a controlled and isolated environment. If something goes wrong, your main computer remains intact. It is the digital equivalent of rehearsing on a safe stage before the final presentation.

Software threat protection

Do you have doubts about opening an attached document or installing an unknown program? Running it in a VM acts as a buffer. Even if you encounter malware or experience a catastrophic failure within the VM, your host machine and critical data remain protected.

Backward compatibility with old software

Some specialized or legacy programs only work on older versions of the operating system. VMs recreate those historical environments, allowing you to continue leveraging tools that would otherwise be inaccessible in modern technology.

Cross-platform development and distributed testing

For developers, VMs are an ideal laboratory. They can simulate and test how their applications behave on different operating systems without having to maintain multiple physical devices. This accelerates development cycles and improves software quality.

On-demand cloud infrastructure

Services like AWS, Azure, and Google Cloud Platform build their entire infrastructure offering on virtual machines. When you allocate resources in the cloud, you are essentially starting one or more VMs on remote servers ready to host your applications, websites, or databases.

The crucial role of VMs in blockchain networks

In the blockchain context, virtual machines transcend their traditional role. They are not just isolated environments, but computational engines that execute the fundamental operations of decentralized networks.

The Ethereum Virtual Machine (EVM) is the most prominent example. It allows programmers to write smart contracts using languages like Solidity, Vyper, and Yul, which are then deployed on Ethereum and compatible networks. The EVM ensures that every participating node in the network validates and interprets these contracts under the same rules, ensuring consistency across the entire distributed system.

However, the landscape of blockchain virtual machines is much more diverse:

• NEAR Protocol and Cosmos have adopted WebAssembly-based virtual machines (WASM), allowing programmers to write contracts in multiple programming languages, not just in proprietary solutions.
• Sui employs MoveVM, a specialized execution environment that runs contracts written in the Move language, focusing on security and expressiveness.
• Solana implements its own custom virtual machine (SVM), specifically designed to process transactions in parallel and handle massive volumes of network activity at high speed.

Each architecture reflects different design decisions: some prioritize speed and scalability, while others seek greater security, flexibility for developers, or specific protocol innovations.

Virtual machines in action: real use cases

Although they work silently in the background, blockchain virtual machines are active every time you interact with decentralized applications:

• In DeFi transactions: When you swap tokens on platforms like Uniswap, the smart contracts that facilitate that swap are executed within the EVM, checking balances, calculating rates, and transferring assets.
• In the creation and transfer of NFTs: The VM manages the code that registers the ownership of each non-fungible token. When you buy or transfer an NFT, the virtual machine processes the ownership updates while maintaining an accurate record.
• In Layer 2 solutions: In rollups such as those based on zero-knowledge proofs (zkEVM), a specialized virtual machine executes smart contracts while generating cryptographic validity proofs that are sent to the main blockchain.

Inherent challenges and limitations

Performance Cost

Virtual machines introduce an abstraction layer between the hardware and the running code. This mediation can result in slowdowns and require more computational power compared to direct execution on physical machines.

Demand for expertise and maintenance

Maintaining virtual machines, especially in cloud infrastructures or complex blockchain networks, requires meticulous configuration, regular updates, and constant monitoring. This demands specialized tools and deep technical knowledge, consuming valuable time.

Fragmentation due to compatibility

Smart contracts are often developed for a specific virtual machine. Code written for Ethereum will need to be rewritten or significantly modified to work on blockchains like Solana or others that are not EVM-compatible. Developers looking to expand to multiple ecosystems face duplicated efforts.

Final Reflections

Virtual machines are invisible but essential pillars in both conventional computing and blockchain infrastructures. They enable flexibility, security, and efficiency in resource utilization. Understanding their operation provides a clearer perspective on the mechanisms driving DeFi tools, smart contracts, and decentralized applications that are transforming the current digital landscape.

Knowledge Expansion

• Exploring modular blockchains: architectures of the future
• Bitcoin Layer 2: scalability on the original network
• Smart Contract Audits: Ensuring Code Security

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