Blockchain and cryptocurrency is a unique industry that evolves quickly, deeming relatively recent technologies old and requiring a change in how things function. One of these is EVMs, which, although quite efficient, inherently have issues that need to be addressed. This necessitated an emergency intervention, moving from virtual machines like Ethereum’s EVM to the newer TVM standard.
TVMs: Their Origins and Why They Were Created
Before going deep into TVMs, it’s worth highlighting what Virtual Machines (VMs) are. In blockchain, VMs are environments where smart contracts are executed. They provide a sandboxed space where contract code can be executed. This provides a few advantages, a few of which are:
- Security
- Interoperability
- Transaction accuracy
One of the most popular virtual machines is the Ethereum Virtual Machine (EVM), mainly due to Ethereum’s long-term popularity. Do keep in mind that it was the first blockchain to create smart contracts, although this popularity just happens to be the reason why TVMs were necessary in the first place, as EVMs aren’t capable of withstanding the number of transactions taking place on their network.
We’re all familiar with how first-gen products mostly have their oversights. And while a lot of the crypto industry’s progress can be owed to EVMs, they had a glaring issue: scalability.
Threaded Virtual Machines (TVMs) are the successor of TON Virtual Machines, designed to deal with EVM’s shortcomings in mind, as it was in a position to build upon the success of Ethereum while reducing its issues. This is mainly concerning the issue of scalability and the never-ending rise of transaction fees, causing many transactions to cost more than the value of the transfer itself, and rendering people’s funds unusable.
How Do TVM Blockchains Work?
Threaded Virtual Machines, or TVMs, allow building modular blockchains with a native Account Abstraction model, allowing accounts to have a much more flexible business logic. Moreover, Threaded Virtual Machines allow the writing of asynchronous smart contracts that implement the Actor model independently of other actors’ states. This leads to an almost infinite scalability that can theoretically process millions of transactions per second.
This is all technical, so let’s explain how TVMs work in more simple terms.
Imagine you have a bunch of Lego blocks that you can build anything with. Now, think of each Lego block as a tiny computer that can do different jobs. These Lego blocks, called “Threaded Virtual Machines,” let you create many different buildings (which are like mini-blockchains) where you can make the rules for each one.
Now, when you want to make these buildings, you usually have to follow certain steps or rules. But with these special blocks, you can make your own rules that are much more flexible.
These blocks also let you build in a way where different parts of the building can work independently without waiting for the others.
Because of this, you can build huge blockchains that can handle a massive amount of transactions at once, like millions of robots all working at the same time without any hiccups.
Another unique aspect of TVM’s architecture is its flexibility in supporting various types of decentralized applications (dApps). Because each shard can be tailored to specific use cases, developers can optimize shards for different types of applications, whether they require high transaction throughput, complex smart contracts, or minimal latency. This modularity makes TVM blockchains particularly attractive for enterprises looking to deploy a wide range of blockchain-based solutions within a unified ecosystem.
We’ll discuss the blockchain’s use cases in our next article in more detail. This article will focus on the ins and outs of TVMs and how they compare to EVMs.
TVM Architecture Explained
TVM blockchains have an unusual asynchronous architecture that sets them apart from traditional blockchain designs. This architecture employs a form of dynamic sharding, enabling the blockchain to split itself into smaller, autonomous units called shards. These shards operate independently, which allows the network to manage its resources more efficiently and maintain high performance under varying loads.
TVM blockchains also introduce an advanced communication protocol between shard chains. This guarantees that transactions and data are synchronized across the entire network despite being processed in parallel. This inter-shard communication is important because it maintains consistency and coherence within the blockchain, preventing issues like double-spending or data discrepancies between shards.
This design enhances the blockchain’s scalability. When the network faces a surge in activity, such as when processing a large number of smart contracts, the validators automatically split off into smaller shard chains. These shard chains facilitate parallel transaction processing, enabling the network to handle a high volume of transactions simultaneously without bottlenecks.
The most impressive aspect of this architecture is its elasticity. As the blockchain load decreases, the shard chains merge back into the masterchain. This re-merging streamlines the network and boosts transaction processing speeds. The best part is that this dynamic adjustment occurs without increasing transaction fees or imposing additional computing requirements on the nodes, making the system both cost-effective and efficient.
TVM’s Consensus Mechanism
TVM’s consensus mechanism, which is based on Proof of Stake (PoS), also plays a large role in its operational efficiency and security. In this system, validators confirm blocks by staking tokens on the blockchain’s network.
Unlike the Proof of Work (PoW) consensus mechanism, which requires significant computational power and energy, PoS lets validators participate without the need for continuous and intensive processing. This leads to a more energy-efficient network that can confirm a large number of blocks with minimal resources.
Security is another advantage of the TVM architecture. TVM uses a Byzantine fault-tolerant algorithm. This improves the blockchain’s integrity as BFT algorithms are designed to function as usual even in the presence of malicious or faulty nodes, offering a level of security that is comparable to that of Bitcoin’s network.
TVMs Vs. EVMs: A Brief Comparison
TVM’s advantages only become more clear when directly compared to EVM. We’ll have a series discussing this in more detail, so today we’ll briefly touch on some of their differences.
On-chain Storage
In EVM-based networks, data storage is subject to regular network fees applied at the time of data deployment, with no ongoing storage fees, regardless of how long the data is kept on the blockchain. This can lead to higher initial costs, particularly during periods of elevated network fees, and risks the data being lost or corrupted without continuous financial support.
In contrast, TVM-based networks offer a more sustainable approach by allowing smart contracts to deduct storage fees over time. This ensures ongoing financial support for the infrastructure storing the data, reducing the risk of data loss and offering a more reliable solution for long-term storage, such as for NFTs. TVMs also allow the on-chain storage of any type of data, with fees calculated fairly based on the data’s size, and can even self-destruct when no longer needed.
Throughput
The throughput difference between EVMs and TVMs stems from their underlying architectures. In EVM-based blockchains, every transaction updates the entire network’s state, which creates a bottleneck and limits scalability. In contrast, TVMs leverage the Actor model, where smart contracts operate independently within their states. This allows TVMs to group contracts into shards that can process transactions in parallel without affecting each other. This asynchronous design significantly boosts throughput, enabling much higher transaction processing speeds and scalability compared to EVM-based networks.
What’s Next?
The transition from EVMs to TVMs represents a significant advancement in blockchain technology, addressing critical issues like scalability, transaction fees, and data storage. While EVMs played a foundational role in the development of decentralized applications, their limitations—particularly in handling high transaction volumes and fees—necessitated the creation of TVMs. TVMs offer enhanced scalability, improved storage solutions, and more efficient consensus mechanisms, making them a robust alternative for modern blockchain applications.
In our next article, we will look into the specific features and use cases of TVMs. We’ll be learning how they’re on track to shape the future of blockchain technology, so stay tuned for our next article.
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