EVM Ecosystem

Definition ∞ The EVM ecosystem comprises all blockchains, applications, and tools compatible with the Ethereum Virtual Machine. This refers to the broad network of decentralized applications, smart contracts, and layer-two solutions that operate on or are interoperable with the Ethereum Virtual Machine. The EVM provides a runtime environment for smart contracts, making it a foundational technology for a vast array of digital assets and decentralized finance protocols. Its widespread adoption fosters a rich environment for developer activity and innovation.
Context ∞ The EVM ecosystem continues to be a dominant force in the digital asset space, serving as a primary platform for decentralized application development. Current discussions often focus on scalability solutions, such as rollups and sharding, designed to enhance transaction throughput and reduce costs within this extensive network. News frequently highlights new projects launching within the EVM compatible chains or advancements in its underlying infrastructure, reflecting its central role in the crypto economy.