Smart contracts); whereas a transaction script is limited in its operation.
However, virtual machines are not available on all blockchains.
Self-Executing Code That’s Transforming Business
Various blockchains use virtual machines to run programs such as Ethereum Virtual Machine (EVM) and Chain Virtual Machine (CVM).
EVM is used in Ethereum blockchain, while CVM is a virtual machine developed for and used in an enterprise-grade blockchain called Chain Core.
State machine: A blockchain can be viewed as a state transition mechanism whereby a state is modified from its initial form to the next one and eventually to a final form by nodes on the blockchain network as a result of a transaction execution, validation, and finalization process.
Node: A node in a blockchain network performs various functions depending on the role that it takes on.
A node can propose and validate transactions and perform mining to facilitate consensus and secure the blockchain.
This goal is achieved by following a consensus protocol (most commonly PoW).
Why This Matters for Blockchain Technology
Nodes can also perform other functions such as simple payment verification (lightweight nodes), validation, and many other functions depending on the type of the blockchain used and the role assigned to the node.
Transactions are first created by nodes and then also digitally signed by nodes using private keys as proof that they are the legitimate owner of the asset that they wish to transfer to someone else on the blockchain network.
This asset is usually a token or virtual currency, such as Bitcoin, but it can also be any real-world asset represented on the blockchain by using tokens.
Smart contract: These programs run on top of the blockchain and encapsulate the business logic to be executed when certain conditions are met.
Key Points to Remember
- Turing complete code to be run on a blockchain (as smart contracts); whereas a transaction script is limited in its operation.
- However, virtual machines are not available on all blockchains.
- Various blockchains use virtual machines to run programs such as Ethereum Virtual Machine (EVM) and Chain Virtual Machine (CVM).
- EVM is used in Ethereum blockchain, while CVM is a virtual machine developed for and used in an enterprise-grade blockchain called Chain Core.
Going Deeper: Advanced Concepts
The smart contract feature is not available on all blockchain platforms, but it is now becoming a very desirable feature due to the flexibility and power that it provides to the blockchain applications.
Smart contracts have many use cases, including but not limited to identity management, capital markets, trade finance, record management, insurance, and e-governance.
Smart contracts will be discussed in more detail in , Smart Contracts.
Conclusion
Turing complete code to be run on a blockchain (as represents one of the many innovative layers that make blockchain technology so powerful and transformative. As distributed systems continue to evolve, a solid understanding of these core concepts becomes increasingly valuable — not just for developers, but for anyone building, investing in, or working alongside blockchain-powered systems.
Whether you are just starting your blockchain journey or deepening existing expertise, mastering these fundamentals gives you the tools to think clearly about decentralized systems and make smarter decisions in this rapidly evolving space.