EVM-compatible blockchains are networks that can run the Ethereum Virtual Machine (EVM) and execute smart contracts on Ethereum. This means that developers can write and deploy the same smart contracts across multiple EVM blockchains, without needing to make significant changes to their code. These smart contracts can then interact with other EVM-compatible blockchains through the EVM, allowing anyone to create multi-chain dApps.

What is EVM (Ethereum Virtual Machine)?

The Ethereum Virtual Machine (EVM) is a software environment that executes smart contracts on the Ethereum blockchain. It is the backbone of the Ethereum network, responsible for executing all operations and transactions on the blockchain. The EVM operates on a unique set of instructions which allow for the creation and execution of smart contracts. The EVM is also responsible for managing the state of the Ethereum blockchain, including the storage of data, the processing of transactions, and the calculation of gas fees ¹.

Advantages of EVM Compatible Blockchains

The Ethereum Virtual Machine (EVM) is a software environment that executes smart contracts on the Ethereum blockchain. EVM compatible blockchains or EVM compatibility refers to the ability for a blockchain to run the EVM and execute Ethereum smart contracts. Here are some of the advantages of EVM blockchain:

Smart Contract Execution: The EVM allows users to create and execute smart contracts, which are software used to make secure transactions, mint non-fungible tokens (NFT), work on decentralized applications and much more ².
EVM Compatibility: EVM compatibility enables developers to quickly create decentralized applications as the same technologies can be used on all EVM-compatible blockchains. The user experience is also simplified, as wallets generally behave the same way on all EVM compatible blockchains ³.
Interoperability: EVM compatibility allows for interoperability between different EVM-compatible blockchains. This means that smart contracts can interact with other EVM compatible blockchains through the EVM, allowing anyone to create multi-chain dApps.
Decentralized Finance (DeFi): DeFi applications are built on the Ethereum blockchain and leverage smart contracts to provide financial services such as lending, borrowing, and trading without intermediaries. The EVM provides a standardized environment for dApps, making any application built on an EVM-compatible blockchain portable and interoperable with other EVM networks.
Layer 2 Scaling Solutions: EVM-compatible layer-2 scaling solutions such as Arbitrum and Optimism are designed to provide faster and cheaper transactions on the Ethereum network, while also providing interoperability with other EVM-compatible blockchains.

EVM compatibility simplifies smart contracts

EVM compatible blockchains or EVM compatibility refers to the ability for a blockchain to run the EVM and execute Ethereum smart contracts. This means that developers can write & deploy the same smart contracts across multiple EVM blockchains, without needing to make significant changes to their code. These smart contracts can then interact with other EVM-compatible blockchains through the EVM, allowing anyone to create multi-chain dApps ⁴.

dApps and decentralized financial systems on the EVM chain

The EVM provides a standardized environment for dApps, any application built on an EVM-compatible blockchain is portable and interoperable with other EVM networks — enabling access to the broader Ethereum ecosystem for all dApps built on those blockchains. Decentralized finance (DeFi) is one of the most popular use cases for EVM. DeFi applications are built on the Ethereum blockchain and leverage smart contracts to provide financial services such as lending, borrowing, and trading without intermediaries ⁵.

Popular EVM Compatible Blockchains

Here are some more popular EVM compatible blockchains:

Ethereum: Ethereum is a decentralized, open-source blockchain that is EVM-compatible. It is the second-largest cryptocurrency by market capitalization and is widely used for building decentralized applications and smart contracts.
Binance Smart Chain: Binance Smart Chain is a high-performance blockchain that is compatible with the Ethereum Virtual Machine (EVM) and supports the Ethereum toolchain. It is designed to be fast, efficient, and cost-effective for developers and users.
Polygon: Polygon is a Layer 2 scaling solution for Ethereum that is EVM-compatible. It is designed to provide faster and cheaper transactions on the Ethereum network, while also providing interoperability with other EVM-compatible blockchains.
Avalanche: Avalanche is a Layer 1 blockchain that is EVM-compatible. It is designed to provide high throughput, low latency, and low transaction fees for developers and users. Avalanche also supports the creation of custom subnets, which can be used to create private or public blockchains that are EVM-compatible.
Arbitrum: Arbitrum is a Layer 2 scaling solution for Ethereum that is EVM-compatible. It is designed to provide faster and cheaper transactions on the Ethereum network, while also providing interoperability with other EVM-compatible blockchains.
Optimism: Optimism is a Layer 2 scaling solution for Ethereum that is EVM-compatible. It is designed to provide faster and cheaper transactions on the Ethereum network, while also providing interoperability with other EVM-compatible blockchains.