Sonic Labs has launched a new points program to drive DeFi growth and reward users. 

The S&P 500 gained 0.11%, led by utilities, financials, and materials, as lighter inflation eased yields. Focus shifts to December's inflation report and financial earnings. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 3.03%, with Bitcoin and Ether rising by 3.14%  and 3.24%, respectively in the past 24 hours.

Today's top performer is A8, which surged 29.7% following the launch of Ancient8 SuperApp V3, an all-in-one platform for simplified Web3 management.

Ancient8 (A8), founded in 2021, is a gaming-focused Ethereum Layer 2 network using Optimism and Celestia to enable fast, affordable EVM game development with community-driven developer support. 

, a streamlined platform for managing Web3 activities. It combines staking, token swapping, liquidity management, an NFT marketplace, cross-chain asset bridging, and game discovery into a single user-friendly interface. The app simplifies processes, enhances security, and helps users maximize the potential of their digital assets, catering to both newcomers and experienced users.

Check Out the Latest Prices, Charts, and Data of 

 a new points program to drive DeFi growth and reward users. The program includes three types of points: Passive Points for holding whitelisted assets, Activity Points for deploying assets as liquidity on apps, and App Points (Sonic Gems) for developers to distribute as rewards via their apps. The initiative also features an airdrop of 200 million S tokens and incorporates Rings, a yield-bearing stablecoin protocol that provides liquidity to DeFi apps. Sonic's points program offers a dynamic way for users and developers to enhance their DeFi experience while contributing to the growth of the platform.

Yesterday, the BTC Spot ETF data showed a total flow of $9.7 million, with $0.0 million from GBTC and $9.7 million from non-GBTC sources.

, offering participants a chance to receive tokens as part of the platform's decentralization journey. The airdrop rewards key contributors, including early adopters, active community members, and global partners. Registration is open until January 18, 2025, and participants can claim tokens before the Token Generation Event (TGE) in Q1 2025. Plume's mission is to build a unified onchain economy that connects real-world assets with crypto, and the airdrop is the first step toward that vision. More details and eligibility information can be found on their official website.

Beginner

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Sonic Labs Launches Innovative Points Program to Drive DeFi Growth and Reward Users

GAME by Virtuals (GAME) is a leading AI agent development framework enabling quick creation and deployment of autonomous agents for web3, gaming, and social media.

Few people will argue with the notion that 

 (AI) is the fastest-growing sector in the world of business. This also applies to the 

 industry. Within the broader AI field, however, there's one area that particularly stands out with its growth rates — the niche of 

. Self-contained, autonomous AI workers are growing increasingly popular on blockchains, with leading AI agent cryptocurrencies posting head-spinning price increases.

 (VIRTUAL) and several tokens related to the platform, including GAME by Virtuals (GAME). Leveraging the underlying Virtuals Protocol, GAME is a development framework that lets developers quickly build and deploy autonomous AI agents suitable for various transactional environments. The GAME framework allows AI agents to make complex decisions based on the information supplied, lifting the overall sophistication of such agents to an entirely new level.

Launched in October 2024, the GAME token has appreciated over 3,000% as of January 2025, entering the list of the top 10 AI agent cryptocurrencies by market cap.

 (GAME) is an AI agent development framework powered by the Virtuals Protocol. 

It lets developers quickly build modular, autonomous AI agents and deploy them to various environments, such as gaming, entertainment and social media platforms.

At the core level, GAME is supported by the Virtuals Protocol, a decentralized platform on the 

 Layer 2 chain that’s designed to power tokenized, co-owned AI agents with revenue-generating capabilities. Virtuals Protocol provides an environment for tokenizing and using AI agents for various use cases.

GAME by Virtuals supports low-code, efficient creation and management of AI agents that can easily be plugged into various web3 platforms and even interact in real time with other agents. By default, AI agents developed using the GAME framework are deployed as X (formerly Twitter) agents. In this capacity, they can serve varied purposes for crypto users and 

 (DApp) operators. This could include community building, market monitoring, news and trading signal aggregation, data collection and even API-based integration with external trading platforms.

Thanks to the framework's modular design, a GAME-based agent can include different functions that are easily plugged into and out of it. Additionally, GAME allows developers to create non–X AI agents from scratch to integrate into other environments, such as blockchain games, messaging networks like Telegram and other types of applications. In essence, the programming tool kit provided by GAME allows developers to specify sophisticated agent characteristics and autonomous behavior. For example, GAME-based autonomous agents might operate in gaming, virtual reality (VR) and virtual world applications, providing immersive experiences and carrying out complex tasks.

The development of X-based agents via GAME is a simplified process. Developers can utilize an Agent Sandbox, a test environment provided by the Virtuals Protocol, to specify the key characteristics of their AI agent on X. This is a streamlined way to quickly and efficiently launch a basic social media agent without having to create an agent token. 

After deploying the agent to X, developers can easily add or remove its functionalities to adapt the agent to their specific use cases.

For applications beyond X, developers can build an agent from scratch using the GAME framework's programming functions. In the project's terminology, this is called GAME-as-a-Service. Within this mode, the agent's decision-making rules and characteristics are specified via API calls. For those familiar with AI-based programming, GAME-as-a-Service provides a more powerful and flexible way to build AI agents, with high levels of functional sophistication, as compared to the Agent Sandbox.

To build and launch an AI agent, developers must specify three categories of attributes that define their agent’s behavior and autonomous decision-making: Agent Definition Prompts, High Level Planner (HLP) Context and Low Level Planner (HLP) Context.

— These include the agent’s goal, character card and world information. In essence, this trio of attributes determines the agent’s overall behavior, memory traits, personality, background, tweeting style and the specifics of its virtual environment.

— This high-level tool establishes the input information to provide a dynamic context for the agent's decisions.

— This is a set of instructions for the agent’s expected outputs to execute various actions and functions within its environment.

To build and deploy agents via GAME-as-a-Service, you’re expected to be familiar with technologies like JavaScript and JSON. The Virtuals platform also provides an agent-building software development kit (SDK) in Python.

The GAME by Virtuals framework’s associated crypto token is also known as GAME. As of early January 2025, the project has provided scant information regarding the token’s utility beyond its basic supply specifications. In general, AI agents launched via Virtuals Protocol are monetized using project-specific tokens. Thus, it’s expected that agents built via the GAME framework are monetized using the GAME token, and that the GAME token might also support additional use cases in the future.

For each token on the Virtuals Protocol, including GAME, there’s a corresponding liquidity pool in which each token is paired with VIRTUAL, the protocol’s native cryptocurrency. This facilitates monetization and trading opportunities for AI agents built using the framework.

The GAME token was launched on Oct 26, 2024 and features a maximum, total and circulating supply of 1 billion. Similar to VIRTUAL and other platform-specific tokens on the Virtuals Protocol, GAME has been issued on the Base blockchain.

You can buy the GAME token on Bybit’s Spot market as a trading pair (

Additionally, through Jan 23, 2025, 9AM UTC, you can take advantage of Bybit's campaign dedicated to the GAME token to grab a share of the 

. New users who complete basic identity verification can earn GAME rewards by accumulating a deposit volume of at least 500 GAME, or depositing at least 100 USDT and trading 100 USDT worth of GAME via their first trade using their Bybit account. Existing users can also qualify for rewards by trading at least 500 USDT worth of GAME on Bybit’s Spot market. The more you trade, the larger your share of the prize pool. 

As of Jan 15, 2025, the GAME token is trading at $0.1922, which is 51% lower than its ATH of $0.3918 on Jan 2, 2025, and 7,190% higher than its ATL of $0.002634 on Nov 20, 2024.

Long-term price forecasts for GAME are mostly bullish.DigitalCoinPrice 

 of $0.65 in 2027 and $0.99 in 2030, whileCoinCodex 

 at around $0.202 in 2027, and rise to $0.629 in 2030.

GAME isn't the only AI agent token on Virtuals Protocol. The protocol supports a variety of applications and use cases that focus on AI agent technology, each of which may have its own token. Excluding the main platform-wide cryptocurrency, VIRTUAL, the leading tokens within the protocol's ecosystem include 

As of Jan 14, 2025, GAME is the second-highest-ranked token in the Virtuals ecosystem by market cap, behind AIXBT, the token of the AI agent-based market intelligence solution AIXBT. However, if ranked by 

 (TVL), GAME is actually the top token on the protocol, with a current TVL of $24.85 million.

GAME by Virtuals is a convenient tool for blockchain developers to launch powerful AI agents — intelligent objects that can perform diverse functions on social media platforms, gaming environments and within a wide variety of other applications. Its framework makes it easy to create X-based agents, and for other platforms and more sophisticated needs a skilled developer has numerous functions and utilities within GAME to play with.

The crypto market also seems impressed with GAME by Virtuals, judging by the GAME token's early performance. As the AI sector, particularly its AI agent niche, continues to flourish and capture the business world's attention, the GAME framework is likely to find more use cases and eager adopters in the AI developer community.

Advanced

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GAME by Virtuals (GAME): Your Gateway to Advanced AI Agent Development

Bitcoin liquid staking is a DeFi mechanism that enables BTC holders to earn passive yields. Learn more about how it works in this article.

The rise of Bitcoin liquid staking marks a significant evolution in cryptocurrency yield generation. At the core of this innovation is Babylon, a non-custodial infrastructure that serves as the foundation for Bitcoin liquid staking protocols like Lombard and pSTAKE. By building on Babylon, these protocols enable BTC holders to earn staking rewards while maintaining liquidity, BTC holders to earn rewards while retaining their assets’ liquidity, bridging the gap between Bitcoin's store-of-value proposition and yield opportunities within 

This article explores how Bitcoin liquid staking works, examines its advantages and risks, and considers whether it’s worth trying. We also analyze the leading Bitcoin liquid staking platforms driving adoption in this rapidly growing ecosystem.

Bitcoin liquid staking is a DeFi mechanism that enables BTC holders to earn passive yields by participating in 

 (PoS) networks and receive tradable tokens that maintain their Bitcoin's liquidity and utility in the broader DeFi ecosystem.

Liquid staking protocols open new yield-bearing opportunities in the Bitcoin ecosystem. While Ethereum liquid staking generates yields through network validation rewards, Bitcoin liquid staking creates returns by securing other blockchain networks, and through 

 that expand the utility of BTC beyond its primary function as a store of value.

Bitcoin liquid staking operates through a straightforward process that bridges traditional Bitcoin holding with DeFi functionality. When users stake their Bitcoin, they interact with specialized DeFi protocols that generate yield while maintaining liquidity.

First, users deposit their Bitcoin into a liquid staking protocol, where it's securely stored using various methods, which can include multi-signature wallets or other security mechanisms depending on the platform.

Users begin by depositing their Bitcoin into their chosen liquid staking protocol, which secures deposits through various methods like 

 or other security mechanisms. In return, they receive 

 (LSTs) representing their staked BTC on a 1:1 basis.

These LSTs can be used across various DeFi applications while the underlying Bitcoin works to secure PoS networks through protocols such as 

. The staking rewards are generated through point systems, protocol incentives or network fees, depending upon the specific Bitcoin liquid staking platform used.

, users' staked Bitcoin helps secure their networks. Rewards are typically distributed daily through the protocol's native tokens, which users can claim while holding their LST positions.

The unstaking process is equally straightforward — users can redeem their LSTs for their original Bitcoin whenever they choose, subject to any applicable unbonding periods or protocol-specific conditions.

Bitcoin liquid staking offers unique opportunities for yield generation, but it comes with its own set of risks that investors should carefully evaluate.

The Bitcoin liquid staking landscape offers diverse options for BTC holders seeking yield opportunities. Following are the top platforms.

Lombard transforms Bitcoin into a yield-generating asset through its LBTC token on Ethereum, with over $1.5 billion in 

 (TVL). The protocol integrates with established DeFi platforms like Morpho, Pendle and Symbiotic, enabling LBTC holders to access lending, borrowing and 

 opportunities. A 5% fee applies to staking rewards.

Following a successful private beta that attracted $230 million from over 4,000 institutional and individual users, Lombard has entered its public beta. Lombard maintains strict security standards through regular audits and a self-custodial model, ensuring LBTC remains fully backed by Bitcoin at a 1:1 ratio.

Recently launched by the Core Foundation, LstBTC is an 

 blockchain. The protocol enables daily rewards in CORE tokens through a dual staking model, whereby users can stake both Bitcoin and CORE tokens for enhanced yields.

Since its launch in April 2024, Core has attracted over 5,500 BTC (around $500 million) in staked assets and built a comprehensive 

 ecosystem. The protocol leverages Bitcoin 

 power for security, with about 55% of miners contributing to network stability.

 integration, allowing users to earn rewards from Layer 2 activity. The protocol converts deposited BTC into stBTC tokens for DeFi applications, enabling its users to earn daily Lightning Network routing fees without managing node infrastructure.

With over 105 active channels and the capacity to process over 18,000 

 (TPS), Stroom Network is secured by established validators, such as P2P.org and Allnodes. Stroom' 

 structure and multisig system ensure decentralized governance while managing Lightning Network integrations.

Babylon is an infrastructure protocol that enables Bitcoin holders to secure PoS networks through BTC staking without requiring 

 or third-party custody. The protocol has accumulated nearly 24,000 BTC in its ecosystem since launching in 2024.

Babylon’s platform prioritizes security through its innovative timestamping protocol, and partnerships with established validators like P2P.org. Though offering more conservative yields than competitors, Babylon's self-custodial model and robust security features have attracted institutional users seeking to put their Bitcoin to work while they maintain control of their assets.

 simplifies BTC yields through Bitcoin staking on Babylon's infrastructure. With over $35M in TVL, the platform offers two core offerings: a fixed-yield earn product (similar to Bybit Earn) accessible to all users and a Bitcoin LST, called YBTC, that offers tailored Bitcoin yield solutions to institutions.

Users can earn staking rewards from Bitcoin-secured networks by staking native BTC through 

. YBTC, a yield-bearing ERC-20 token on Ethereum backed 1:1 by BTC, connects with BNB Chain, Corn, B Squared, and Bitlayer through LayerZero integration.

Institutions can use YBTC in the BTCfi ecosystem to generate additional yields from DeFi protocols focused on restaking, yield farming, and more. PSTAKE — the protocol's incentivization, governance, and staking token — trades on exchanges like Bybit and can be staked on the Base L2 chain to earn Bitcoin rewards for participating in protocol and community activities.

Bitcoin liquid staking is worth considering if you:

Before participating, investors should carefully evaluate platform security, understand the technical aspects of liquid staking and assess their 

. Additionally, smart contract vulnerabilities and LST price fluctuations present real risks that need to be considered against potential rewards.

Choose a platform that aligns with your expertise level and goals. Established protocols like pSTAKE suit experienced DeFi users, while newer participants might prefer user-friendly platforms, such as Core's LstBTC. Start with smaller amounts of assets to familiarize yourself with the mechanics before committing significant capital.

Bitcoin liquid staking represents a significant evolution in Bitcoin's utility, offering holders new ways to earn yields while participating in the broader DeFi ecosystem. While the technology and protocols are still being developed, growing market adoption and continued innovation suggest a promising future for the Bitcoin liquid staking sector.

Intermediate

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Bitcoin Liquid Staking: New Yield Opportunities for BTC Holders

BlackRock has launched the iShares Bitcoin ETF (IBIT) on Cboe Canada, offering Canadian investors access to Bitcoin through brokerage accounts.

The S&P 500 rose 0.16% as focus shifts to inflation data and earnings reports from major banks. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 0.16%, with Bitcoin and Ether dropping by 1.14%  and 4.65%, respectively in the past 24 hours.

Today's top performer is AAVE, which surged 4.3% after the announcement of Aave and GHO's expansion across networks for broader integration.

Aave (AAVE), founded in 2017, is a decentralized lending platform on Ethereum for lending, borrowing, and earning interest on 17 cryptocurrencies. It uses smart contracts, collateral for loans, and aTokens for interest, along with features like instant loans. Aave is 

 to multiple networks, with ARFCs passed for Linea, Celo, and World Liberty Finance, while Sonic, Mantle, BOB, and Rootstock are in earlier stages. GHO stablecoin is also growing, with expansions to Avalanche and Base already approved. Aave and GHO aim for widespread integration.

 the iShares Bitcoin ETF (IBIT) on Cboe Canada, offering Canadian investors access to Bitcoin through brokerage accounts. The ETF mirrors Bitcoin's price performance by investing in the U.S. iShares Bitcoin Trust ETF, which holds long-term Bitcoin assets. This launch highlights BlackRock’s focus on innovation and simplifying Bitcoin exposure by addressing operational and custody complexities. Cboe Canada, known for pioneering financial products, emphasizes its role in expanding the crypto ecosystem. IBIT and IBIT.U join seven other iShares ETFs on Cboe Canada, enabling investors to trade via standard investment channels.

Yesterday, BTC Spot ETFs experienced outflows totaling $313.6M, including $89M from GBTC and $224.6M from non-GBTC sources.

 its governance token, $ANIME, in January 2025 with a total supply of 10 billion (7.69 billion initially circulating). Community allocation is 50.5%, including 2% for Hyperliquid stakers, Kaito yappers, and Arbitrum users. Completing Azuki's points tasks might help with eligibility for the airdrop.

BlackRock Launches iShares Bitcoin ETF on Cboe Canada for Simplified Crypto Access

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Tech Deep Dive

The Ethereum Virtual Machine allows for DApp creation and enables code execution for smart contracts. Find out why it's essential with our EVM beginner's guide.

The Ethereum virtual machine (EVM) is often referred to as “the heart of Ethereum” — which is exactly what it is. Just as the heart pumps blood that distributes oxygen and nutrients throughout the body, an EVM grants developers the ability to create smart contracts and DApps in the Solidity programming language. It’s responsible for the majority of DApps being created today, which is what distinguishes it from Bitcoin and other distributed ledgers. In this article, we’ll dive headfirst into Ethereum virtual machines and break down what they are, how they work and their role in DApp development and the advancement of Web 3.0.

Whether you’re a programmer with an interest in DApps or an investor wanting to learn more about the ever-evolving world of EVM crypto, you’ve probably heard of Ethereum virtual 

 best understand what an EVM is, it helps to first learn a little about its history.

According to Vitalik Buterin, Ethereum’s creator, BitTorrent was the very first DApp. 

 invented the file-sharing protocol in 2001, and despite several efforts to destroy it, BitTorrent remains very much alive.

To truly halt BitTorrent, every computer in every home across the world would have to be shut down. It’s a virtual machine unbound by physical constraints. The same is true of the Ethereum virtual machine. The EVM eliminates the need for superpowered hardware, and is an ideal platform for beginning programmers. However, knowledge of bytes, stacks, and blockchain concepts like hash functions and proof of work is helpful when trying to gain a deeper understanding of EVM-compatible code and the Ethereum virtual machine in general.

The Ethereum virtual machine’s purpose is to determine the state of every block in the Ethereum blockchain. While EVMs are similar to other blockchain-based networks in that they use a distributed ledger to maintain databases for transactions, they add another layer of functioning due to their smart contract capabilities. Many refer to this second layer as a “distributed state machine.”

In its most rudimentary form, an Ethereum virtual machine is a large database for holding all of Ethereum’s accounts and balances. At the same time, it’s also a machine state with the ability to execute machine code and change with each new block added to the blockchain ledger. The specific rules that determine how the EVM will change with each new block are actually defined by the EVM itself.

More simply put, an Ethereum virtual machine is a processing engine and software platform that functions like a decentralized computer. From DeFi and EVM crypto apps to games and marketplaces like OpenSea, developers use the Ethereum virtual machine to create DApps based on Ethereum and its EVM-compatible programming language, Solidity.

Most important, the Ethereum virtual machine is the part of the Ethereum network responsible for the execution and deployment of smart contracts. It’s where smart contracts and millions of DApps based on Ethereum blockchain live and breathe.

Think of Ethereum’s blockchain as a P2P structure of different individual nodes. One node connects to the next, making each node responsible for the security and stability of the entire ecosystem. To do so and maintain consensus throughout the Ethereum blockchain, each node uses the EVM.

Ethereum isn’t a CPU — it’s a distributed worldwide network with 100 CPUs simultaneously running the EVM. However, the EVM functions as a virtual CPU or virtual “machine” running inside of the Go Ethereum, or “Geth,” program.

Similar to other software programs, developers create DApps and write smart contracts in a programming language. Instead of Java or C++, the language for Ethereum is called Solidity. Solidity code is compiled into bytecode and distributed to every computer (node) running Geth in the network.

When a smart contract gets deployed, every node receives a copy of it, runs its bytecode and gives the code to whomever called for the deployment, resulting in “state change.” This means the blockchain’s current state has been altered, which can be done only with the consensus of every node.

Therefore, an EVM is often referred to as a “distributed state machine.” It tracks the state of the blockchain as it transforms with each transaction.

If you’ve ever downloaded a song, movie or software from BitTorrent, then you know what a decentralized network can do. Even the world’s most powerful authorities can’t remove it because doing so would require shutting down every computer tied to the network.

One of the best ways of scaling a decentralized network is through the use of virtual machines. Acting as a layer between machines and the code they execute, virtual machines can be run on various hardware and operating systems from anywhere in the world.

Virtual machines like the EVM function similarly to physical machines with CPUs, memory and storage, but they operate as nothing but code. Theoretically, anyone can run a virtual machine, giving it the flexibility and portability decentralized networks need.

The Ethereum virtual machine uses a decentralized nodal network to execute smart contracts. It’s a dynamic, sandboxed virtual stack, embedded inside each Ethereum node to execute EVM-compatible smart contract bytecode.

When learning what EVMs are and what they do for crypto in cases like DeFi lending, keep in mind that smart contracts are written in Solidity and other higher-level languages, and then they’re translated to bytecode and compiled to the EVM. This means the machine code is isolated from the filesystem, processes and network of the host computer.

For each instruction the EVM implements, a cost is assigned to it, allowing the system to keep track of the execution costs. The cost of making EVM crypto transactions and executing other instructions is measured in EVM-compatible units known as gas.

By enabling an economy based on charges for executed instructions rather than executed financial transactions, like Bitcoin, Turing Completeness is achieved. This means the Ethereum virtual machine is a peer-to-peer, globally connected computer, able to create smart contracts, P2P crowdfunding events, file-sharing economies and more.

Not unlike the internet in the early 1990s, the future is there for the taking.

At the moment, there are approximately 150 different opcodes an EVM can execute. So, what exactly are opcodes — and why are they important in understanding EVMs?

The reason the Ethereum virtual machine is referred to as Turing Complete is largely because of its ability to execute machine-level instructions known as 

EVM-compatible opcodes help the EVM complete specific tasks related to EVM crypto transactions or smart contracts. However, opcodes are used for a variety of operations, ranging from arithmetic and data logging to memory and the retrieval of block information.

That said, opcodes aren’t written directly into an EVM. Due to their ability to let developers easily create and interact with smart contracts, EVMs are written in the Solidity programming language. However, this native language must be converted to opcode for an EVM to interpret.

Each opcode is assigned one byte. This means a maximum of 256 opcodes can be used.

When trying to understand what an EVM is, a basic knowledge of smart contracts and their role in EVM crypto, DeFi and other blockchain functions is necessary.

Sometimes referred to as the “App of the EVM,” smart contracts are EVM-compatible lines of code used by parties to transact with one another without the use of a third party, or interference from central authorities.

Within each smart contract is a defined list of operations that are to be executed when certain on- or off-chain conditions are met. These operations can range from the transfer of funds to certain addresses, to the creation of new smart contracts and the communication between existing ones. Instead of requiring a third party, anyone can send funds to a smart contract address to prompt these operations.

Ethereum took the Bitcoin concept and supercharged it by allowing developers to build smart contracts on top of their blockchain. The next step was creating an environment where smart contracts could live and interact with one another. This is where the Ethereum virtual machine comes into play.

The EVM combines the resources of not just one but thousands of CPUs connected to Ethereum’s network. In addition to verifying transactions, it translates smart contract opcode written in Solidity into bytecode, so instructions can be read and operations can be executed. For this last part, you need gas.

Each opcode is assigned a gas cost. The more complex the opcode, the higher the gas fee. At the moment, the starting cost of every transaction is 21,000 gas.

Gas fees are charged to compensate the validators responsible for checking to make sure the transaction information is valid, and that there are no exceptions or errors from the EVM.

Even more important, gas fees help prevent 

 attacks and keep the network secure. Since deploying complex contracts at scale would require lengthy and expensive computations, attackers are monetarily discouraged from making any malicious attempts. The attack would simply be too expensive to run.

Interoperability between blockchains has proven to be a significant problem. As issues with Ethereum — such as high gas fees and slow transactions — persisted, developers began creating DApps and smart contracts based on other permissionless blockchains to offer faster transactions and lower gas fees. Unfortunately, many of these blockchains are severely limited and lack interoperability with other blockchains.

EVM-compatible blockchains have proven to be an easy way of solving this issue. Rather than starting from scratch and creating an environment similar to that of EVMs through the use of cross-chain bridges, developers can copy certain pieces of the Ethereum network, and create DApps that allow users to quickly and easily transfer assets between any EVM networks.

With this interoperability, many of today’s most used blockchains follow this EVM-compatible model. Examples include some of the biggest names in the EVM crypto space, such as:

Ultimately, when discussing EVM-compatible blockchains, it all comes down to optimization and creating the best possible decentralized user experience. That said, there are other benefits as well.

One of the biggest benefits of EVMs is their interoperability within the Ethereum ecosystem. Ethereum is the most widely used blockchain in the world. Thanks to the Ethereum virtual machine, DApps based on the Ethereum blockchain are able to communicate and interact with one another, allowing for a faster and more seamless user experience.

By using blockchain bridges, interoperability among blockchains can be achieved. Users can freely send assets across EVM networks from one DApp to the next.

Low Barrier to Entry for Ethereum Developers

Now that we’ve gone over what an EVM is and how it works, let’s look at how everything comes together to power EVM crypto and other Ethereum-based projects.

Several DApps and Ethereum projects incentivize users with ERC-20 tokens, which are specifically designed to be easily transferred between addresses and maintain the same value across the network.

ERC-20 tokens are created by smart contracts following defined data structures. This data structure is responsible for naming, distributing and monitoring the token.

These tokens are used for much more than EVM crypto. Nexus Mutual, which provides insurance on smart contracts, utilizes the NXM ERC-20 token to give users the ability to make claims and purchase coverage.

. Although it’s not exactly the most popular example when discussing EVMs, this decentralized video streaming network employs the Livepeer ERC-20 token to incentivize users to supply the network with resources. These are just two of the many DApps that handle ERC-20 tokens.

 (DEXs) enable the exchange of ERC-20 tokens through the deployment of smart contracts. These smart contracts allow users to tap into the liquidity pools of tokens without third-party interference, giving them the title of 

 and several other popular exchanges are actually applications of this decentralized AMM model.

Another widely popular token is the non-fungible ERC-721. Smart contracts with this token are frequently used for minting 

 (NFTs), which are tokens possessing unique value across the Ethereum blockchain.

Unthinkable a few years ago, a piece of code now has the ability to democratize virtual access to art markets. Such gaming projects as 

 also use these tokens for in-game items and collectables.

AdaSwap and Milkomeda are using this collaboration to integrate Ethereum virtual machines into the Cardano ecosystem. There are several other DeFi platforms following Cardano’s lead.

Ultimately, DAOs are entirely governed by individual members who collectively make critical decisions regarding the project. collectively. The rules of a DAO are established by core community members and implemented through smart contracts. Since these are visible, verifiable, and open to public audit, every member of the DAO can understand how the protocol functions at each and every step of the way.

When trying to understand what is an EVMs, it's important to consider both their pros and their cons. Despite its many advantages, EVM technology also comes with certain limitations. For one thing,irstly, using an Ethereum virtual machine requires some level of technical experience. Knowledge of Solidity, Java, and other programming languages is a must.

Secondly, EVMs are infamous for their high gas fees. No matter how smart an EVM may be, it can’t avoid its own popularity and the data congestion that comes with it, resulting in higher transaction fees compared to other chains.

Lastly, the Ethereum virtual machine isn’t entirely decentralized. In fact, about 25 percent of Ethereum nodes are actually running on Amazon Web Services. If AWS were to experience a major outage or discontinue its services, EVMs and the DApps they power would be noticeably affected.

When it comes to Ethereum blockchain and EVMs, we are only at the beginning. In the near future, the speed, complexity, and ability of the Ethereum virtual machine will only increase, in much like the same way as the PCs of the 1990s evolved into the processing powerhouses being used today.

That said, EVMs aren’t perfect. Challenges regarding network throughput and transaction speed continue to be an issue plaguing the system. Currently, these issues are focal points for the Ethereum development community, and solving them is a road map for Ethereum’s continued usage and success.

If Ethereum is to live up to its promise of revolutionizing the way we interact and transact with each other, it will be the result of improvements made to the EVM.

In this article, we’ve traversed the Ethereum virtual machine, explored the execution of smart contracts, and looked at how EVMs execute bytecode. We’ve also discussed gGas, the accounting mechanism for EVMs, and talked about how itthey facilitates transactions and protects Ethereum from DDoS attacks. Ultimately, EVMs are the heart and soul of smart contract deployment and execution. Gaining a deeper understanding of the Ethereum virtual machine is essential a must for anyone looking to develop DApps and dive into our future decentralized world.

What Is an Ethereum Virtual Machine (EVM)? A Beginner's Guide

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