Virtual Operating Systems: How VMs Are Revolutionizing Computing and Blockchain

Have you ever needed to run a different operating system without additional hardware or test risky software without worrying about your main computer’s security? Virtual operating systems, known as VMs, make this possible. Through isolated environments, virtual machines allow you to run various OSes, protect against malicious code, and reliably execute smart contracts on blockchain networks. This revolutionary solution bridges traditional IT infrastructure and decentralized finance.

What Are Virtual Operating Systems and Why Are They Important

Imagine having access to an entire computer without needing to buy new hardware. Virtual machines do exactly that—they create a completely independent environment within your existing computer. You can install any operating system, store files, run applications, and connect to the internet—all without affecting your main computer, which we call the host.

External physical hardware—memory, processor, and storage—is shared between the virtual environment and the host. This means one machine can run multiple virtual systems simultaneously, making it highly flexible for different tasks. It’s especially useful when you need access to software available only on another OS without leaving your current setup.

How the Hypervisor Manages Virtual Environments

At the core of this process is a key technology—the hypervisor. This specialized software takes the physical resources of your computer, such as CPU, RAM, and storage, and efficiently allocates them so multiple virtual machines can operate in parallel.

Hypervisors are divided into two main types:

• Type 1 – Bare-metal: Installed directly on hardware, bypassing the host OS. Used in data centers and cloud platforms because it offers the best performance and efficiency.

• Type 2 – Hosted: Runs as a regular application on your standard operating system. Ideal for developers and testing because it’s more flexible and easier to use.

Regardless of the type, the hypervisor ensures each virtual environment believes it has its own resources, while in reality, they share the physical hardware with other systems.

VMs in Practice: From IT Infrastructure to Blockchain Applications

Where are virtual machines used? Everywhere around us. In traditional computing, developers use VMs to test code across different operating systems before deploying it in production. IT teams utilize VMs in cloud services—Amazon AWS, Microsoft Azure, and Google Cloud build entire infrastructures on virtual machines, allowing users to rent computing power without purchasing physical hardware.

However, the most innovative applications come from the blockchain world. Virtual machines have become fundamental mechanisms in decentralized networks, enabling reliable execution of smart contracts across thousands of computers simultaneously.

Virtual Machines in Blockchain Networks

Blockchain virtual machines differ from traditional VMs—they are not primarily for security isolation but for executing decentralized code. The Ethereum Virtual Machine (EVM) is the most popular example.

EVM allows developers to write smart contracts in languages like Solidity, Vyper, and Yul, then deploy them on the Ethereum network. A key feature: every node in the network executes the same code in the same way, ensuring deterministic results. This is crucial for blockchain—participants must agree on what happened.

Different blockchain networks use various types of virtual machines tailored to their goals:

• NEAR and Cosmos utilize WebAssembly (WASM) VMs that support smart contracts written in multiple programming languages, making the ecosystem more accessible to developers.

• Sui employs MoveVM with its own Move programming language, optimized for security and parallel processing of assets.

• Solana uses a custom runtime environment called Svm (Solana Virtual Machine), designed to process thousands of transactions per second through parallel execution.

Practical Examples: When Are Virtual Systems Used

Testing new operating systems: Need to try Windows on a MacBook? A VM environment allows this without installing an extra hard drive or rebooting your computer.

Isolating risky software: Need to open suspicious files or test unknown applications? Running them inside a virtual machine protects your main computer—if problems occur, the VM can be deleted without harm.

Running legacy code: Software that only works on Windows XP or older systems can be reactivated in an appropriate virtual environment.

DeFi and NFT operations: When using Uniswap to swap tokens, the EVM executes smart contracts managing the transaction. When minting NFTs, the VM tracks ownership and updates records with each transfer.

Layer 2 solutions: Specialized VMs like zkEVM enable rollups to execute smart contracts while using zero-knowledge proofs (ZKP) to validate thousands of transactions in a single batch.

Challenges of Virtual Environments

While powerful, virtual machines have limitations:

Performance: An extra layer between physical hardware and running code can slow down applications. VM environments require more computing resources than direct execution on physical hardware.

Management complexity: Maintaining, updating, and configuring VMs—especially in large infrastructures or blockchain networks—requires specialized knowledge and sophisticated tooling.

Network compatibility: Smart contracts written for Ethereum are not automatically compatible with Solana or other blockchain networks. Developers must rewrite or adapt code, adding time and cost to development.

Conclusion

Virtual operating systems are transformative technology that enable more efficient hardware use and safer software testing. In the blockchain space, VMs have become indispensable—they are mechanisms that allow thousands of nodes to follow the same rules when executing decentralized applications and smart contracts.

From AWS cloud infrastructure to Ethereum blockchain networks, virtual machines operate behind the scenes. Understanding how they work provides insight into how functionalities like DeFi, NFTs, and Layer 2 solutions are actually executed. This knowledge may seem technical, but it’s key to understanding the future of distributed computing.