Execution Environment

Definition ∞ An Execution Environment is a specialized virtual machine or runtime system where smart contracts and decentralized applications operate within a blockchain network. It provides the necessary computational resources and state management for these programs to run predictably and securely. This isolated environment ensures that operations are deterministic and do not interfere with the underlying blockchain protocol.
Context ∞ The design and optimization of execution environments, such as the Ethereum Virtual Machine (EVM) or WebAssembly (WASM) runtimes, are central to blockchain development. Innovations in this area focus on improving transaction processing speed, reducing gas costs, and supporting more complex computational logic. Compatibility across different execution environments is a significant topic for interoperability within the broader digital asset ecosystem.