Virtual Machines (VM): How They Shape the Digital World

Have you ever wondered how to run multiple different computers without having each one separately? Or how smart contract code finds a way to operate across the entire Ethereum network simultaneously? The answer lies in virtual machines—VMs essentially enable the same physical device to function as multiple distinct systems at once. Although this concept may seem complex, VMs are actually one of the most elegant engineering solutions we’ve developed. In this article, learn what VMs really are and why they are important for both cloud infrastructure and blockchain networks.

VM: From Theory to Practice

Imagine your computer as a large household servant, and virtual machines as separate rooms. In each room, you can have a different interior style (operating system), different furniture (programs), and different people (users)—all existing on the same land without direct conflicts. That’s the essence of a VM.

A VM is actually a program that simulates a real computer. You can install Windows, Linux, or any other operating system, open files, run applications, and connect to the internet within it. The key point is—all of this runs on your main computer. Your physical system operates in the background, providing memory, processing power, and storage—like a secure basement where other family members live.

How VMs Work: The Hypervisor Secret

Everything begins with a special program called a hypervisor. The hypervisor is like the control center for VMs. It takes your computer’s physical hardware—CPU, RAM, storage—and divides it among multiple VMs, which can run simultaneously.

There are two main types of hypervisors, each with its own purpose:

Type 1 hypervisors are installed directly on the hardware, bypassing the operating system. They are very fast and efficient, used in data centers and cloud platforms like AWS, Azure, and Google Cloud. Here, speed and reliability are top priorities.

Type 2 hypervisors run inside a normal operating system as simple programs. They are ideal for personal users who want to test a new OS or try out unfamiliar software on their laptop. Although slightly slower, they are easier to set up.

Why VMs Are Indispensable for Blockchains and Cloud Services

VMs have spread across key areas such as:

Secure testing. With VMs, you can test anything—from a new Windows version to a suspicious file—without risking your main system. If something goes wrong, just delete the VM and start fresh.

Running legacy software. Some people want to use programs designed for Windows XP, released in 2005. Instead of buying an old computer, they can create a VM that recreates that environment.

Development across platforms. Want to see how your code runs on Windows, Mac, and Linux? VMs allow this on a single machine, significantly speeding up development.

Cloud computing. The entire cloud industry—AWS, Azure, Google Cloud—is built on VMs. When you rent a “cloud server,” you’re essentially renting a dedicated VM in a remote data center, ready to host websites, applications, or databases.

Smart Contract Engines: EVM and Other Blockchain VMs

Blockchain virtual machines operate differently from traditional VMs. Instead of being isolated sandboxes, they function as decentralized engines managing smart contracts and decentralized applications (DApps).

Ethereum Virtual Machine (EVM) is the best example. EVM reads and executes smart contract code written in Solidity, Vyper, and Yul. Every time you perform an operation on Ethereum, the EVM ensures all network nodes verify the same results. This is the heart of decentralization.

However, different blockchains have their own VM strategies:

• NEAR and Cosmos use WebAssembly (WASM)-based VMs. This approach is flexible and allows developers to write smart contracts in multiple programming languages.

• Sui uses the Move VM, designed specifically for the Move language. Move was created to securely manage resources, making Sui’s Move VM highly safe and efficient.

• Solana does not use a traditional EVM. Instead, it employs a custom execution environment called Solana VM (SVM). SVM is optimized for parallel processing of transactions and handling high throughput—hence Solana can process thousands of transactions per second.

From the User Perspective: VMs in Action

When you use a DApp or DeFi platform, the VM operates behind the scenes:

• When swapping tokens on Uniswap, your transactions are managed by a smart contract running inside the EVM.

• When creating an NFT, the VM tracks ownership of each token. When you buy or transfer, the VM updates logs to ensure clear ownership records.

• Using Layer 2 solutions like zkEVM, specialized VMs execute smart contracts with zero-knowledge proof (ZKP) validation—combining security and speed.

VM Limitations: What You Should Know

While VMs are incredibly useful, they are not perfect:

Performance cost. VMs add an extra layer between your hardware and code. This can sometimes slow things down compared to code running directly on physical hardware.

Complexity and maintenance. Managing VMs, especially in cloud or blockchain environments, is not trivial. It requires ongoing updates, security patches, and expertise.

Cross-system compatibility. A smart contract written for EVM won’t run directly on Solana or other incompatible blockchains. You’ll need to rewrite or adapt the code, which takes time and resources.

Final Thoughts

Virtual machines (VMs) are an invisible but indispensable foundation of the modern digital world. From personal computers to global cloud systems and decentralized blockchain infrastructure, VMs provide flexibility, security, and multi-user capability on the same device. Even if you’re not technically inclined, understanding how VMs power DApps and smart contracts helps you better manage your digital assets in the evolving economy.