Ethereum Virtual Machine: 5 use cases you should know

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Ethereum Virtual Machine

The Ethereum Virtual Machine (EVM) is often called “the heart of Ethereum”, and for a good reason. Like the heart, which pumps blood throughout the body to deliver oxygen and nutrients, EVM enables developers to create smart contracts and decentralized applications (DApps). The majority of DApps today are developed on Ethereum’s platform, which sets it apart from other blockchains.

In this article, we’ll explore the most common use cases of Ethereum Virtual Machine to help you understand the incredible versatility of this solution and its paramount role in developing DApps and Web 3.0.

5 EVM use cases

ERC-20 Tokens

Several decentralized applications and Ethereum projects use ERC-20 tokens as incentives for users, who can easily transfer between addresses and maintain the same value across the network. Smart contracts create these tokens following a defined data structure responsible for naming, distributing, and monitoring the token.

One example of this is Nexus Mutual, an insurance provider on smart contracts that uses the NXM ERC-20 token to offer users the option to make claims and purchase coverage.

Livepeer is another example of how ERC-20 tokens are used; although not the most common example when talking about EVMs, this decentralized video streaming network uses the Livepeer ERC-20 token to incentivize users to supply resources for the network.

NFT minting

The non-fungible ERC-721 token has become widely popular for smart contracts. This is used frequently to mint non-fungible tokens (NFTs) or tokens with unique value across the Ethereum blockchain.

Unthinkable a few years ago, this piece of code now can democratize virtual access to art markets. Gaming projects such as Gods Unchained and Axie Infinity also use these tokens for in-game items and collectibles.

AMMs and DEXs

Decentralized exchanges allow users to exchange ERC-20 tokens by deploying smart contracts. These contracts let users tap into the liquidity pools of tokens, giving them the title of automated market makers. SushiSwap and Uniswap are popular DEX applications based on this decentralized AMM model.


A decentralized autonomous organization governs Ethereum Virtual Machine (DAO). A DAO is an entity that lacks a central authority, giving the community control over the network. A DAO’s decisions are based on code written by smart contracts that execute actionable instructions, but at any point, users can make voting and proposals happen through consensus.

Morevore, the code itself can be open to public audit. Ultimately, these rules are set by core community members and implemented via smart contracts. As these rules are visible, verifiable, and open to public audit, each member of the DAO can understand how the protocol functions at every step.

DeFi lending

AdaSwap is a decentralized exchange that uses the Cardano blockchain. It recently announced a collaboration with Milkomeda, a Layer 2 solution for sidechains. With this collaboration, users may transfer assets and run Cardano DApps on Ethereum, and vice versa. Examples of such use are AdaSwap and Milkomeda, which integrate Ethereum Virtual Machine into the Cardano ecosystem. Several other DeFi platforms have followed Cardano’s lead

Which blockchains are EVM-compatible?

The interoperability between blockchains has become significant problem. When issues with Ethereum – from high gas fees to slow transaction speed – persisted, teams started to create dApps and smart contracts based on other permissionless blockchains to offer faster transactions and lower gas fees.

To facilitate these transfers, many of these blockchains are now compatible with one another through the use of cross-chain bridges, which allow users to quickly and easily transfer assets between any EVM networks.

Examples of such blockchains include Binance Smart Chain, Avalanche, Fantom, Cardano, Polygon, and Tron.

Wrap up

Since many blockchains are EVM-compatible, the solution offers all of the benefits and reach of the Ethereum blockchain but with faster speeds and lower transaction costs. These use cases prove EVM’s real potential in pushing the Web 3.0 revolution forward.

At 4soft, we take advantage of EVM to speed up the development and offer our clients maximum flexibility regarding the choice of blockchain and programming language. If you’re looking for a team of EVM experts, reach out to us – we have helped to kick off many blockchain projects and know how to achieve the best results.

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