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EVM
The EVM (Ethereum Virtual Machine) is the shared computing environment that every Ethereum node runs to execute smart contracts. Each node runs the same code on the same inputs and gets the same result, which is how the network agrees on balances after every transaction.
What it means for you. Every operation the EVM performs has a gas cost, which is why a contract interaction such as a swap costs more than a plain transfer. Many Ethereum sidechains are EVM-compatible and run the same kind of contracts, so the network selected in a wallet decides where a transfer actually lands.
Sources: ethereum.org: Ethereum Virtual Machine (EVM), ethereum.org: Scaling · checked 4 October 2026
Smart contract
A smart contract is a program stored on a blockchain at its own address, holding code and data. When someone sends it a transaction, it runs exactly as written — 'if this, then that' — without a person approving or interpreting the result.
What it means for you. Interactions with a smart contract are irreversible, and its code generally cannot be changed once deployed, so a bug or a malicious function stays in place. When a wallet asks you to sign a contract call, the raw data is not written for humans; signing it blind can authorise actions you did not intend.
Sources: ethereum.org: Introduction to smart contracts, ethereum.org: Smart contracts · checked 4 October 2026