Slot Machines (VM): How do they change the ICT environment

On your computer booting Windows on a MacBook? Safe testing of an unknown application without risking your computer? VMs (virtual machines) make all this possible by creating an isolated digital environment where different operating systems and applications can run independently. More than just an IT tool — in blockchain networks, VMs run the entire smart contract ecosystem, ensuring that transactions are secure and reliable.

Why should you use virtual machines?

Virtual machines have many practical uses that make work easier and safer.

Secure testing of new systems: Each VM allows you to test a completely different operating system without changing anything on your main computer. For example, if you need to run old Windows XP applications, you can create a VM with that environment. After testing, simply delete it.

Safe environment for testing risky software: Malware, unknown files, or experimental applications? Installing them in a VM keeps your main system completely protected. If something goes wrong, the VM can always be restored to its original state.

Running multiple operating systems in parallel: With one computer, you can run Windows, macOS, and Linux in separate VMs simultaneously. This increases flexibility, especially for developers who need to test in multiple environments.

Code development and testing: Developers can test their applications across multiple operating systems on the same machine, without buying expensive hardware. Production becomes faster and with more options.

Cloud infrastructure: Many cloud platforms like AWS, Azure, and Google Cloud operate on the same VM principles. When your website is hosted in the cloud, it runs inside a virtual computer in a remote data center.

How do VMs actually work physically?

Behind the scenes, software called a hypervisor manages the VMs. This hypervisor is the VM supervisor — it takes your computer’s physical resources (CPU, memory, hard drive) and allocates them so many VMs can use them simultaneously.

There are two main types of hypervisors:

Type 1 (bare-metal): Installed directly on hardware, without an underlying OS. Ideal for data centers and cloud services — very fast and efficient, but require specialized setup.

Type 2 (hosted): Runs on your regular operating system as an application. Great for testing and development, as it doesn’t require complex configuration.

Once a VM is created, you can start it like a regular computer. You can install software, browse the internet, run applications — all as if on a physical device, but actually inside a hypervisor-controlled environment.

VMs in blockchain networks: EVM and other environments

Traditional VMs are isolated sandboxes. But in blockchain networks, VMs operate differently — they are engines running the entire decentralized application network.

Ethereum’s VM (EVM) is the best example. Developers write smart contracts in Solidity, Vyper, or Yul and deploy them to the EVM. All Ethereum nodes execute the same contracts in the same order, ensuring network trustworthiness.

Different blockchains implement their own VMs:

• NEAR and Cosmos use WebAssembly (WASM)-based VMs, supporting multiple programming languages.
• Sui uses MoveVM, designed specifically for Move language smart contracts.
• Solana has developed its own custom SVM, which executes transactions in parallel and can handle larger data volumes.

These VMs are not just technical choices — they determine how all decentralized applications operate on the network.

Using VMs in practice: DeFi, NFTs, and more

Even if you didn’t notice, VMs are working behind the scenes every time you interact with a decentralized application.

In DeFi trading: When swapping tokens on Uniswap, the smart contracts run inside the EVM. The virtual machine calculates the correct exchange rate, takes your tokens, and sends the new ones.

Creating NFTs: When you mint an NFT, the VM runs code that tracks ownership. Each buy or sell updates the data, ensuring the NFT is on the correct owner.

Layer 2 transactions: Faster and cheaper transfers are often achieved via specialized VMs, like zkEVM. These use smart contracts and zero-knowledge proofs (ZKP) to validate transactions.

All of this runs behind the scenes — the user only sees fast, low-cost transfers.

What are the main challenges of VMs?

While VMs are flexible and powerful, they also have limitations.

Performance overhead: VMs add an extra layer between hardware and code. This can slow down operations and increase energy consumption compared to running directly on physical hardware.

Complex setup and management: VMs (especially in cloud and blockchain contexts) require careful configuration and regular updates. This takes time and specialized knowledge.

Compatibility issues: Smart contracts written for one VM often don’t work directly on another. Code written for Ethereum may need rewriting to run on Solana. Developers must invest extra effort to deploy the same application across different networks.

In conclusion

Virtual machines are a key technology in both traditional IT and blockchain networks. They enable running multiple systems, provide secure testing environments, and optimize resource use. In blockchain, VMs define how smart contracts and decentralized applications function.

Even if you’re not an IT expert, understanding how VMs work helps you better grasp how DeFi tools and platforms operate behind the scenes.