TL;DR

• EVM-compatible blockchains are like parallel universes to Ethereum, sharing its virtual machine. 
• They offer interoperability, developer adoption, and unique features. 
• Non-EVM blockchains are independent, with distinct advantages like scalability and lower fees. 
• Cross-chain interoperability is crucial for the future of blockchain, and Rubic is a leading solution to bridge the gap between different networks.

The foundation of the blockchain revolution can be traced back to Bitcoin’s launch in 2009, inspiring the creation of diverse chains like Litecoin, Ethereum, Ripple, and more. However, as blockchain networks multiplied, integration challenges arose due to differences in protocols, consensus mechanisms, languages, and governance models. The EVM addressed some of these challenges, introducing smart contracts and enabling the creation of various dApps. Since then, EVM has dominated the DeFi space, and non-EVM networks face issues with integration into it.

There are certain interoperability challenges between EVM and non-EVM networks, and there’s a pressing need for solutions that enable seamless communication and data transfer between these diverse blockchain platforms. One of these solutions is Rubic. Let’s dive in and explore why and how!

Understanding the Ethereum Virtual Machine (EVM)

Before we go deeper into EVM-compatible blockchains, it is essential to grasp the (EVM).

What is the EVM?

The EVM is a software runtime environment that executes smart contracts on the Ethereum blockchain. It operates as a virtual computer within the Ethereum network, providing a platform for developers to create decentralized applications (dApps) with complex functionalities.

Why EVM Matter?

The EVM’s significance lies in its role as a standardized platform for smart contract development. Its open-source nature and well-defined rules have assisted in building a thriving ecosystem of developers and tools, accelerating the creation of innovative dApps on Ethereum.

We can summarize the importance of EVM in three sections:

Standardization: The EVM provides a standardized platform for developers. This means that anyone can write a smart contract using a compatible programming language (like Solidity) and expect it to run consistently on the Ethereum network. This standardization creates a vibrant developer community and accelerates innovation.

Open-Source: Its code is publicly available. This allows developers to inspect, modify, and improve the EVM’s functionality. It also encourages transparency and community-driven development.

Ecosystem Growth: The EVM’s role in enabling smart contract development has led to a thriving ecosystem of developers, tools, and applications. This ecosystem has fueled the growth of decentralized finance (DeFi), non-fungible tokens (NFTs), and other innovative blockchain-based projects.

What Are EVM-Compatible Blockchains?

EVM-compatible blockchains are essentially parallel ecosystems to Ethereum that share the same underlying technology: the Ethereum Virtual Machine (EVM). This compatibility allows them to:

• Execute Ethereum smart contracts: These blockchains can run the same smart contract code that is used on Ethereum. This means that developers can easily port their existing Ethereum dApps to these new networks.
• Interact with Ethereum: EVM-compatible blockchains can communicate and interact with the Ethereum network. This enables the transfer of assets, data, and information between the two networks, creating opportunities for cross-chain applications.
• Leverage Ethereum’s ecosystem: These blockchains can benefit from the vast developer community, tools, and infrastructure that has been built around Ethereum. This accelerates their development and adoption.

Key Features of EVM-Compatible Blockchains

EVM-compatible blockchains offer several key features that make them attractive to developers and users:

Interoperability with Ethereum

Perhaps the most defining characteristic of EVM-compatible blockchains is their ability to seamlessly interact with Ethereum. This interoperability allows for the transfer of assets, data, and smart contracts between the two networks, expanding the possibilities for cross-chain applications.

Developer Adoption and Ecosystem Growth

The compatibility with Ethereum’s EVM attracts a vast developer community familiar with its tools and programming languages. This accelerates the development of dApps on these blockchains, leading to a more vibrant and diverse ecosystem.

Scalability

Some EVM-compatible blockchains employ innovative scaling solutions to address the limitations of Ethereum’s original design. This improved scalability can enable faster transaction speeds and lower fees, making these blockchains more suitable for certain applications.

Specialized Features

Certain EVM-compatible blockchains may incorporate specialized features tailored to specific industries or use cases. For example, some may focus on privacy, supply chain management, or financial applications.

What Are Non-EVM Blockchains?

Non-EVM blockchains are blockchain networks that do not use the Ethereum Virtual Machine (EVM) Examples of non-EVM chains include Polkadot, Tezos, and Cardano, each bringing unique features and capabilities to the broader blockchain landscape.

They operate on different underlying technologies, such as:

• Consensus mechanisms: While Ethereum uses Proof of Stake (PoS), non-EVM blockchains might employ different consensus algorithms like Proof of Work (PoW), Delegated Proof of Stake (DPoS), or Tendermint.
• Programming languages: These blockchains may use different programming languages for writing smart contracts, such as Rust, Haskell, or Go.
• Architectures: The overall design and structure of non-EVM blockchains can vary significantly from Ethereum. Some might have a more modular or hierarchical architecture, while others might focus on specific use cases.

The Importance of Cross-Chain Interoperability

The growing number of blockchain networks has created a fragmented landscape, limiting the potential for collaboration and innovation. Cross-chain interoperability is crucial to address this challenge and unlock the full potential of blockchain technology.

The Challenge of Isolated Blockchain Networks

Isolated blockchain networks operate in silos, hindering the exchange of value and information. This fragmentation can limit the adoption of blockchain technology and hinder its integration into traditional systems.

Why Interoperability Matters?

Cross-chain interoperability enables seamless communication and value transfer between different blockchains. It creates an environment of collaboration, expands the range of possible applications, and establishes a more interconnected and efficient blockchain ecosystem.

1. Enhanced Collaboration: It enables different blockchains to work together, fostering collaboration between developers, businesses, and other stakeholders.
2. Expanded Applications: Interoperability allows for the creation of more complex and innovative applications that can leverage the strengths of multiple blockchains.
3. Increased Efficiency: By breaking down silos, interoperability can streamline processes and reduce inefficiencies.
4. Greater Adoption: A more interconnected blockchain ecosystem can drive greater adoption of blockchain technology by making it easier for businesses and individuals to benefit from its advantages.

Expanding Interoperability in Non-EVM Networks with Cross-Chain Tools

While EVM-compatible blockchains inherently benefit from interoperability with Ethereum, non-EVM networks can also leverage cross-chain tools to bridge the gaps and enable communication with other blockchains.

Rubic’s API and SDK for Cross-Chain Solutions

Rubic, a leading provider of cross-chain infrastructure, offers an API and cross-chain SDK that enable developers to build decentralized applications with seamless interoperability across multiple blockchains. It is a DEX aggregator accumulating over 200 DEX, 80+ blockchains, and 20+ bridges helping you find the best rates across platforms and chains. This permits developers to create innovative solutions that leverage the unique advantages of different networks.

Major EVM-Compatible Blockchains

Binance Smart Chain (BSC)

BSC is a high-performance blockchain developed by Binance, known for its low transaction fees and fast confirmation times. It has attracted a significant developer community and supports a wide range of dApps.

Polygon (MATIC)

Polygon is a layer-2 scaling solution for Ethereum, designed to address scalability challenges and reduce transaction costs. It offers a modular framework that allows for various scaling solutions, including plasma and zk-rollups.

Avalanche

Avalanche is a high-throughput, low-latency blockchain platform that utilizes a novel consensus mechanism. It is designed to be scalable, secure, and customizable, making it suitable for a wide range of applications.

Major Non-EVM Blockchains

While EVM-compatible blockchains have gained significant traction, there are also several prominent non-EVM blockchains with unique characteristics:

Solana

Solana is a high-speed blockchain platform renowned for its rapid transaction times and affordable fees. It utilizes a novel consensus mechanism called Proof of History (PoH) to achieve high throughput. Many call it a tough competitor of Ethereum as well.

Cardano

Cardano is a blockchain platform that prioritizes security, sustainability, and scalability.. It is developed through a rigorous academic approach, focusing on peer-reviewed research and formal verification.

Polkadot

Polkadot is a heterogeneous multi-chain network that allows for the creation of interconnected parachains. Each para chain can operate independently while benefiting from the security and scalability provided by the relay chain.

EVM-Compatible vs Non-EVM Blockchains

As the DeFi sector gained traction, EVM became the de facto standard due to its robust smart contract capabilities and a vast array of applications built on Ethereum. Consequently, most DeFi protocols and platforms were designed with EVM compatibility in mind. This resulted in non-EVM networks, such as Litecoin, Cardano, Ton, and others, facing hurdles when attempting to be integrated within the DeFi ecosystem beyond just their token presence. 

Non-EVM networks operate independently from Ethereum, adhering to their own rules, languages, smart contracts, and wallet formats. While this diversification establishes a more robust crypto ecosystem and encourages innovation, it presents a hindrance when they try to cooperate. Each non-EVM network may have its own specific challenges, but here are some common challenges that can be associated with such networks:

Adoption and Network Effects

One of the significant challenges for any blockchain network is achieving widespread adoption. The dominance of the Ethereum ecosystem and its EVM-based smart contracts has created a strong network effect, making it difficult for alternative platforms to attract developers, users, and projects.

EVM compatibility can drive easier traffic acquisition and ecosystem expansion because Ethereum users can quickly migrate to new chains without creating a new address and wallet. The same logic applies to dApp developers: one can fork existing, popular DeFi open-source protocols or integrate SDKs, for example.

Ecosystem and Tooling Limitations

Established EVM-based networks like Ethereum have a mature ecosystem with various DeFi applications, wallet integrations, DEXs, and other infrastructure components. This creates a propitious environment, where users can swap assets on almost any DEX, across different chains in any direction and with no KYC.

Non-EVM networks might lack a similar level of ecosystem development, making it challenging to build a robust and vibrant network with supporting services. They are mostly present on CEXs, which offer a complicated KYC process and represent a custodial solution.

Interoperability

Interoperability is crucial for the growth and integration of different blockchain networks. Many existing decentralized applications and protocols are built on Ethereum and depend on its standards and infrastructure, it’s not easy for them to go multichain on non-EVMs. They can only do so with bridges/a cross-chain aggregator built-in SDK (like Rubic’s).

Non-EVM networks also often lack cross-chain solutions and are limited in the number of supporting bridges to enable communication and data sharing between different blockchain platforms.

Developer Learning Curve, Familiarity, and Tooling

Ethereum’s EVM has been around for a considerable time, resulting in a vast developer community and a rich set of tools, libraries, and frameworks. Non-EVM networks may face challenges in providing a similar level of developer support, documentation, and tooling, making it less accessible for developers to build applications on those networks.

Moving from Ethereum’s EVM-based development to a different network can involve a learning curve for developers. They need to understand new programming languages, development frameworks, and architectural differences. This transition can slow down the ‌adoption of non-EVM networks, as developers might prefer to stick with what they are already familiar with.

The Future of Blockchain Interoperability

The future of blockchain technology is inextricably linked to the advancement of interoperability. As the number of blockchain networks continues to grow, there will be an increasing demand for seamless communication and value transfer between them.

Rubic’s Vision for a Unified Blockchain Ecosystem

Rubic’s commitment to scaling and promoting interoperability in non-EVM chains is exemplified through our cross-chain tools. With the availability of Rubic’s SDK and Swap Widget, a wide range of DeFi projects can seamlessly integrate the same feature toolkit and cross-chain solutions showcased on the Rubic App. This integration empowers various platforms to extend interoperability opportunities between EVM and non-EVM networks, enabling their users to benefit from a comprehensive and readily available solution.

Through Rubic’s cross-chain tools, integrators provide users with a ready-made solution for bridging the gap between EVM and non-EVM networks. This approach eliminates the complexities associated with developing custom interoperability solutions from scratch, saving time and resources. By using Rubic’s solutions, these integrators can offer their users a seamless and efficient cross-chain experience, promoting greater adoption and usability in the blockchain space.

Conclusion

EVM-compatible blockchains have played a pivotal role in driving the adoption of blockchain technology by providing a standardized platform for smart contract development and fostering interoperability with Ethereum. As the blockchain ecosystem continues to evolve, the importance of cross-chain interoperability will only grow. By leveraging innovative tools and solutions like Rubic’s cross-chain infrastructure, developers can build applications that unlock the full potential of this transformative technology.

FAQ

1. What are the benefits of using EVM-compatible blockchains?

EVM-compatible blockchains offer several benefits, including interoperability with Ethereum, a large developer community, and the potential for faster transaction speeds and lower fees.

2. What are the differences between EVM-compatible and non-EVM blockchains?

Key Differences:

Feature	EVM-Compatible Blockchains	Non-EVM Blockchains
Virtual Machine	Ethereum Virtual Machine (EVM)	Proprietary or custom virtual machines
Interoperability	High interoperability with Ethereum	Limited or no interoperability with Ethereum
Developer Community	Larger and more established	Smaller and less established
Scalability	Varies, some offer improved scalability	Can offer superior scalability
Transaction Fees	Generally lower than Ethereum, but can vary	Can be lower or higher than Ethereum
Specialized Features	May offer specialized features, but often limited	May offer specialized features tailored to specific industries

3. How can cross-chain tools like Rubic’s API help to improve interoperability between different blockchains?

Rubic’s API and cross-chain SDK provide developers with the tools needed to build applications that can seamlessly interact with multiple blockchains, facilitating the exchange of value and information.

4. What are the challenges in achieving true cross-chain interoperability?

Achieving true cross-chain interoperability is complex due to technical hurdles, security concerns, regulatory challenges, scalability issues, and the lack of standardized protocols. Overcoming these obstacles requires collaboration, innovation, and robust infrastructure solutions..

5. What is the future outlook for blockchain interoperability?

The future of blockchain technology is increasingly tied to interoperability. As the number of blockchain networks grows, there will be a greater need for seamless communication and value transfer between them. Innovative solutions like Rubic and collaborative efforts will be crucial in driving progress in blockchain interoperability.