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When we discuss blockchain performance, security, or scalability, most attention goes to consensus algorithms or transaction throughput.

Yet beneath these visible layers lies the virtual machine (VM), the execution engine that enforces network rules, runs smart contracts, and ensures every node reaches the same outcome.

In Web3, the VM has evolved far beyond a simple code runner. In 2025, it’s a strategic lever that can influence scalability, security, and developer adoption.

Choosing the right VM can shape whether a network can scale to millions of users, defend against vulnerabilities, and attract top-tier talent.

In this blog, we explore what virtual machines are in the context of Web3, their core roles, the 2025 VM landscape, current trends, use cases, challenges, and where they’re headed next.

Let’s get started.

What is a Virtual Machine in the Context of Web3?

A virtual machine in Web3 is a specialised, sandboxed execution environment that runs the logic on smart contracts in a blockchain network.

Its job is to take code written by developers, compile it into bytecode, and execute it deterministically across thousands of nodes, all without relying on a central server.

Where the VM Fits in Blockchain Architecture

In the blockchain stack, the VM sits at the execution layer, right above the state database and right below the consensus layer.

Here’s how it interacts with the rest of the system:

• The consensus layer validates transaction ordering and agreement across nodes.
• VM execution layer processes the logic in smart contracts, updating the blockchain’s state.
• State storage keeps the updated ledger for future reference.

In 2025, the VM landscape is no longer dominated by a single design like the Ethereum Virtual Machine (EVM).

Newer VMs, from WASM-based engines like Arbitrum Stylus and CosmWasm, to application-specific designs like FuelVM and CairoVM, are reshaping how contracts are written, how fast they execute, and even what programming languages can be used.

This diversification of VMs is part of a larger shift toward specialised execution environments tailored for performance, parallel processing, or verifiable computation.

For developers and protocol teams, understanding these differences is no longer just technical trivia; it’s a strategic decision that affects scalability, security, and user experience.

Before exploring the leading VMs in 2025, it’s essential to first understand the core roles they play in a blockchain network.

Core Roles of Virtual Machines in Web3

When a transaction hits the blockchain, it isn’t executed directly from the developer’s source code.

Instead, the code is compiled into bytecode that the virtual machine understands. Every node feeds this bytecode into its local VM and processes it against the current blockchain state.

If every node produces the exact same result, the new state is recorded. And even if one node’s output differs, consensus breaks, making the VM the ultimate gatekeeper for correctness.

Key roles VMs play in blockchain networks:

• Deterministic Execution – Guarantees that all nodes, anywhere in the world, produce identical results from the same input. Without this, a blockchain would fork constantly.
• Security and Isolation – Runs smart contracts in a controlled sandbox to prevent malicious or faulty code from affecting the broader network. In high-value ecosystems like DeFi or governance, this isolation is a critical defence.
• Economic Efficiency – Execution is metered through gas, meaning performance isn’t just technical; it directly affects user costs. Efficient VMs reduce fees and make applications more viable at scale.
• Language Flexibility – While the EVM made Solidity the default, newer engines like Arbitrum Stylus, CosmWasm, and MoveVM allow contracts in Rust, Go, and Move, opening the door for developers from traditional software backgrounds.

These roles make the VM more than just a runtime; it’s the foundation for trust, efficiency, and innovation in blockchain networks. But not all VMs are built the same.

The current VM landscape can be broken down into a few dominant machines, each designed to solve a specific set of challenges.

The 2025 VM Landscape: Diversity in Design and Performance

The execution layer is no longer a monolith. When blockchain technology was still maturing, the Ethereum Virtual Machine (EVM) served as the primary engine for running smart contracts across networks.

Today, the landscape includes high-throughput runtimes, zero-knowledge proof-powered environments, multi-language execution engines, and hybrids that combine the best of multiple worlds.

Each approach reflects different priorities: scaling without compromising security, opening doors to non-Solidity developers, or enabling provable computation for cross-chain trust.

In 2025, choosing a VM is as much a strategic business decision as it is a technical one.

Here are some of the most prominent virtual machines shaping the Web3 ecosystem today, from the familiar EVM to specialised environments like Solana’s Sealevel, WASM-based engines, MoveVM, ZK-powered runtimes, and high-performance hybrids.

Ethereum Virtual Machine (EVM)

The EVM is the most widely used smart contract execution environment, powering Ethereum, most L2 rollups, and EVM-compatible L1s.

Its primary strength is the strong network effects it has built over time, with mature tooling and proven infrastructure supporting every stage of a dApp’s lifecycle.

Why it matters in 2025

• Ecosystem Gravity: Even high-performance L1s often add EVM compatibility layers to tap into their massive developer base.
• Proven Security: A decade of deployment and hundreds of billions in on-chain value have made EVM vulnerabilities easier to identify and patch compared to newer VMs.
• Developer Momentum: Smart contract deployments on EVM-based chains are surging, showing their resilience despite competition.
• Trade-offs: Sequential execution limits throughput (~15 TPS on Ethereum mainnet). L2s help scale, but congestion still occurs during high activity, impacting UX for time-sensitive apps like DeFi trading.

Solana’s Sealevel Runtime

Solana approaches execution differently. Instead of processing transactions one after another, Sealevel can execute multiple transactions in parallel, provided they don’t access the same state.

This design lets Solana handle high throughput without fragmenting into sidechains or separate rollups.

Why it matters in 2025

• Parallelism as a Feature: Enables simultaneous execution of independent transactions, a key advantage for real-time DeFi, gaming, and NFT marketplaces.
• Proven Throughput: Sustained 1,053 TPS in April 2024 under real-world conditions, dwarfing Ethereum’s current capacity.
• Developer Considerations: To unlock full performance, developers must design for account-level parallelism. Poorly structured contracts that frequently touch the same state can reduce performance gains.
• Trade-offs: Optimised for speed, but its hardware requirements and architectural complexity make it less accessible for smaller validator setups compared to EVM chains.

WASM-Based Engines (CosmWasm, Arbitrum Stylus, etc.)

WebAssembly (WASM) has become the standard for executing code in browsers and is now being used in blockchain to run smart contracts written in multiple languages.

Engines like CosmWasm and Arbitrum Stylus allow developers to build in Rust, Go, AssemblyScript, and other languages, breaking the Solidity monopoly.

Why it matters in 2025

• Lower Barrier for Web2 Developers: Multi-language support makes it easier for experienced software engineers to transition into blockchain without learning an entirely new stack.
• Cross-Ecosystem Flexibility: WASM’s compatibility with non-blockchain environments makes it easier to integrate with existing off-chain infrastructure.
• Performance Evolution: Early WASM blockchain implementations had noticeable execution overhead compared to EVM, but 2025 compiler improvements and optimised host functions have narrowed the gap significantly.
• Adoption Trends: Strong traction in Cosmos-based chains, modular execution layers, and newer rollups targeting multi-language smart contract ecosystems.

MoveVM (Aptos / Sui)

The Move programming language and its VM were designed at Meta for the Diem project, later adopted by Aptos and Sui.

MoveVM takes a resource-oriented approach: assets are treated as unique, owned resources that can’t be accidentally copied or destroyed, drastically reducing common bugs.

Why it matters in 2025

• Security by Language Design: Prevents entire classes of vulnerabilities, including double-spends and reentrancy attacks, before contracts even compile.
• Predictable Parallel Execution: Move’s strict state management makes it easier to parallelise execution without unexpected side effects safely.
• Use Case Fit: Well-suited for high-value financial applications, complex in-game economies, and security-sensitive governance systems.
• Performance Notes: Strong in controlled environments; public benchmarks are less common, but architectural design points toward high parallel efficiency when workloads are optimised.

ZK-Powered VMs (Starknet’s CairoVM, zkEVM variants)

Zero-knowledge VMs represent a leap in verifiable computation. Instead of trusting that a transaction was executed correctly, a cryptographic proof is generated so others can verify it without re-running the computation.

This is especially useful in cross-chain and rollup scenarios.

Why it matters in 2025

• Trust Minimisation: Execution can be verified by anyone, anywhere, without replaying the transaction.
• Scalability Potential: In theory, it can scale to thousands of TPS while preserving trustlessness.
• Best Fit: Rollups, cross-chain bridges, and privacy-first applications needing both scalability and auditability.

High-Performance Hybrids (Injective EVM, DTVM, etc.)

Hybrid models aim to merge the familiarity and tooling of EVM with the speed and flexibility of alternative architectures like WASM.

This approach reduces developer migration friction while delivering better runtime performance.

Why it matters in 2025

• Injective EVM: Combines native EVM compatibility with architectural optimisations, claiming up to 400% faster execution than typical EVM environments.
• DTVM: Integrates EVM ABI compatibility with WASM performance, achieving 2× faster execution and sub-millisecond invocation times.
• Strategic Value: Offers a middle ground for ecosystems that want performance boosts without forcing developers to abandon familiar EVM workflows.

Why Virtual Machines Matter in Web3’s Evolution?

In today’s Web3 stack, the virtual machine is more than just a technical component; it’s a strategic choice that shapes a protocol’s scalability, security, and adoption.

As blockchains move toward modular architectures, VMs have become the defining factor in how networks compete and grow. Today -

Performance is now a competitive advantage

• Throughput, latency, and transaction finality all depend on the execution layer.
• High-performance VMs like Solana’s Sealevel and Injective EVM can process far more transactions per second than traditional EVM environments, giving them an edge in high-frequency use cases like DeFi trading and real-time gaming.

Security is enforced at the execution level

• The VM acts as the final checkpoint for contract security.
• MoveVM’s resource-oriented model reduces state conflicts, while ZK-powered VMs like Starknet’s CairoVM make execution verifiable without re-running computations.
• This matters more than ever as Web3 lost over $3.1 billion to hacks in just the first half of 2025, and execution-layer protections are a critical defence.

Developer experience drives ecosystem growth

• A VM’s design determines how easy it is for developers to build and how rich the tooling ecosystem becomes.
• The EVM continues to dominate because of its libraries, frameworks, and community size, but WASM and Move-based environments are rapidly onboarding developers from Web2 by allowing them to code in Rust, Go, or Move.

In 2024 alone, over 39,000 new blockchain developers entered the space, many through non-EVM ecosystems.

Interoperability is shaping the multi-chain future

• As multi-chain architectures mature, cross-VM compatibility is becoming a deciding factor for liquidity sharing, asset movement, and multi-chain application deployment.
• Protocols that select execution environments with cross-language and cross-chain support will be better positioned to integrate with other networks and attract diverse developer talent.

In 2025, the VM is no longer hidden infrastructure. It’s a strategic lever, influencing not only how a network runs today, but also how it scales, secures itself, and competes in the future.

To understand where this evolution is heading, we need to look at the key trends currently shaping VM design and adoption across the Web3 ecosystem.

Current Trends Shaping Virtual Machines

The VM landscape in Web3 is no longer just about execution speed or language support. It’s being shaped by broader shifts in blockchain architecture, developer preferences, and market demands.

From modular execution to AI-assisted programming, these trends are redefining what it means to choose “the right” virtual machine.

Modular Blockchain Architectures Driving VM Innovation

In 2025, modular blockchains separate the execution, consensus, and data availability layers. This allows networks to swap or customise their VM without altering the rest of the stack.

Key Points

• Execution as a Service: Platforms like Celestia and EigenLayer AVSs enable protocols to deploy execution layers with custom VMs tailored to specific workloads, including externalised execution that doesn’t live on the base chain.
• Composable Design: Teams can pair a high-performance VM (e.g., Solana-like parallel runtime) with a data availability layer for optimal cost-performance balance.
• Impact: Lowers the barrier for new chains to experiment with non-EVM VMs without rebuilding entire ecosystems.

The Rise of ZK-VMs and Verifiable Computation

Zero-knowledge VMs are moving from research to deployment, offering provable correctness of execution without re-running computations.

Key Points

• Adoption Growth: zkEVM testnets are maturing into production environments for L2 rollups like Polygon zkEVM and Scroll.
• Strategic Fit: Critical for cross-chain protocols, where independent verification of execution is needed for trustless interoperability.

Multi-Language Development as a Growth Strategy

In a competitive developer market, ecosystems are embracing VMs that support popular Web2 languages.

Key Points

• WASM Expansion: Rust, Go, and AssemblyScript are now supported on chains like CosmWasm, Arbitrum Stylus, and Near Protocol.
• Developer Onboarding: By reusing existing skills, these environments shorten the learning curve and reduce friction for migration into Web3.

AI-Integrated Execution Environments

AI-assisted tooling is starting to influence how contracts are developed, optimised, and executed inside VMs.

Key Points

• Optimised Compilation: AI models suggest gas-saving code modifications during development, improving runtime efficiency.
• On-Chain AI Agents: Some hybrid VMs, like Injective’s architecture, are exploring AI model execution natively for DeFi automation.
• Productivity Gains: Early adopter teams report faster development cycles when pairing AI-assisted coding with robust VM debugging tools.

Sustainability and Energy Efficiency as a Selection Factor

As blockchain networks face environmental scrutiny, VM efficiency is becoming part of sustainability conversations.

Key Points

• Execution Overhead Matters: WASM optimisations and parallel runtimes can reduce computational redundancy, lowering validator hardware load.
• Green Protocol Positioning: Chains with lower energy consumption per transaction, often enabled by efficient VMs, are better positioned for enterprise and regulatory partnerships.

VM evolution is no longer an isolated engineering problem.

It’s being shaped by modular blockchain design, verifiable computation, cross-language developer strategies, AI integration, and sustainability requirements.

Protocol teams that align their VM choice with these trends will not only perform better technically but will also attract developers, capital, and strategic partners in a rapidly consolidating Web3 ecosystem.

Use Cases: How VMs Enable Web3 Applications

Virtual machines are not just abstract infrastructure components; they directly determine what’s possible in decentralised applications.

From automated market makers to metaverse economies, the VM is the execution engine that turns code into action while maintaining security, determinism, and scalability.

Decentralised Finance (DeFi)

DeFi protocols rely on complex contract logic that needs to execute flawlessly under high load. The VM’s efficiency determines both transaction cost and system responsiveness.

Key Points

• High-Frequency Trading: Parallel VMs like Solana’s Sealevel handle thousands of transactions per second, enabling real-time order books for on-chain trading.
• Composable Protocols: EVM ecosystems excel at composability, where different DeFi contracts interact seamlessly, a core reason why Ethereum-based DeFi still holds over 50% of total DeFi TVL.
• Example: Uniswap v4’s hook architecture depends heavily on EVM efficiency for rapid on-chain liquidity customisation without compromising settlement guarantees.

Gaming and Metaverse Platforms

On-chain gaming logic demands both high throughput and deterministic execution to keep player states synchronised across a decentralised network.

Key Points

• Parallel Execution for Gameplay: Solana and FuelVM allow multiple in-game actions to process simultaneously without bottlenecks.
• Economy Management: MoveVM’s resource-oriented model ensures assets like NFTs and in-game tokens follow strict ownership rules, preventing exploits like duplication glitches.
• Example: Sui-based games leverage MoveVM to create complex item crafting systems with guaranteed scarcity enforced at the VM level.

Decentralized Autonomous Organizations (DAOs)

DAOs use smart contracts for treasury management, voting, and governance execution, all of which require transparent, secure, and verifiable execution.

Key Points

• On-Chain Voting: EVM-based DAOs benefit from robust tooling like Snapshot integrations, but WASM and Move environments are emerging for custom governance logic.
• Automated Treasury Actions: VMs execute multi-step proposals (e.g., token swaps, grants, staking) without manual intervention.
• Example: Starknet’s CairoVM enables DAOs to produce zero-knowledge proofs of governance results, improving transparency for external stakeholders.

Cross-Chain Bridges and Interoperability Solutions

Secure cross-chain communication depends on the ability to verify execution without re-running code on the receiving chain.

Key Points

• Verifiable Proofs: ZK-VMs like zkEVM and CairoVM generate cryptographic proofs for execution, reducing trust assumptions in bridge relayers.
• Custom State Verification: WASM-based rollups integrate easily with non-blockchain systems, enabling hybrid on/off-chain validation flows.
• Example: zkSync’s zkEVM supports trust-minimised asset transfers between Ethereum and its L2, removing the need for centralised bridge operators.

Enterprise and Public Sector Applications

VMs are critical for meeting compliance, privacy, and integration needs in regulated industries.

Key Points

• Custom Compliance Logic: WASM VMs can enforce jurisdiction-specific rules at the contract level without hardcoding them into the base protocol.
• Privacy Layers: ZK-powered VMs enable confidential transactions while maintaining verifiability, making them suitable for financial reporting or public tenders.
• Example: Private rollup solutions built on zkEVM are being tested for healthcare record management, where proof of data access must be verifiable, but the contents remain private.

The VM’s capabilities directly shape the type of decentralised applications that can exist.

Choosing the right execution environment isn’t just about performance; it’s about enabling specific industries, transaction models, and trust guarantees that align with the application’s core purpose.

The Future of Virtual Machines in Web3

Virtual machines are evolving from silent execution engines to strategic infrastructure components that define the capabilities and competitiveness of entire blockchain ecosystems. In 2025 and beyond, several shifts are likely to shape their trajectory.

Convergence of Multi-VM Ecosystems

As cross-chain activity grows, ecosystems will prioritise VM interoperability.

• Unified Tooling: Developers may be able to write in their preferred language and deploy to multiple VMs without changing core logic.
• Translation Layers: Cross-VM compilers and bytecode compatibility standards are already in early testing phases.
• Impact: This will reduce “developer lock-in” and accelerate innovation across ecosystems.

Mainstreaming of ZK-VMs

Zero-knowledge virtual machines will mature into production-ready environments for high-value applications.

• Scalable Proof Systems: Improvements in proof generation speed will close the gap between theoretical and real-world performance.
• Enterprise Use Cases: ZK-VMs could become the default choice for regulated industries requiring verifiable compliance.

AI-Enhanced Contract Development and Execution

AI integration will shift from being a development assistant to becoming part of the runtime execution logic.

• On-Chain AI Agents: Smart contracts could adapt to real-time market or governance conditions based on AI inference results.
• Self-Optimising Contracts: AI models could recompile or optimise execution pathways for cost savings in gas and storage.

Sustainability as a Competitive Differentiator

VM efficiency will be tied to energy-conscious design.

• Green Adoption Curve: Low-energy execution environments will gain favour with enterprise and government partners.
• Hardware Efficiency: Innovations in parallel execution and WASM optimisations could lower the carbon footprint per transaction.

Conclusion

Virtual machines have moved from being a background component of blockchain networks to becoming one of the most strategically important parts of the stack.

The EVM’s dominance remains strong, but specialised VMs, whether optimised for speed, verifiability, safety, or language flexibility, are reshaping how developers build and how protocols compete.

In 2025, selecting a VM is not just an engineering decision; it shapes the long-term scalability, security posture, developer acquisition, and interoperability strategy of a protocol.

At Lampros Tech, we help teams build future-ready blockchain infrastructure that aligns with the evolving Web3 execution landscape, where resilience, scalability, and user trust are designed into every layer.