Shared EVM excels at developer adoption and composability because it leverages Ethereum's massive ecosystem. For example, protocols like Aave and Uniswap can deploy with minimal code changes, instantly accessing billions in TVL and millions of existing wallets. This network effect reduces time-to-market and provides a rich library of battle-tested smart contracts and tools like Hardhat and Foundry.
LABS
Comparisons
Shared EVM vs App-Specific VM
A technical analysis comparing the dominant Shared EVM model against emerging App-Specific Virtual Machines. This guide examines architectural trade-offs in performance, sovereignty, and ecosystem integration for CTOs and protocol architects.
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introduction
THE ANALYSIS
Introduction: The Execution Layer Dilemma
Choosing between a shared EVM and an app-specific VM is the foundational technical decision for any new blockchain project.
App-Specific VMs take a different approach by optimizing the execution environment for a single application's logic. This results in superior performance and customizability, as seen with Solana's Sealevel VM for high-frequency trading or Fuel's UTXO-based model for parallel transaction processing. The trade-off is a steeper development curve and the need to build tooling from scratch or rely on nascent ecosystems.
The key trade-off: If your priority is rapid deployment, ecosystem leverage, and developer liquidity, choose a shared EVM chain like Arbitrum, Polygon, or Base. If you prioritize maximizing throughput, designing novel fee markets, or requiring non-EVM cryptographic primitives, choose an app-specific VM like those on Solana, Fuel, or Berachain.
tldr-summary
Shared EVM vs App-Specific VM
TL;DR: Core Differentiators
Key strengths and trade-offs at a glance for infrastructure architects.
01
Shared EVM: Developer Velocity
Massive ecosystem leverage: Access to 4,000+ verified smart contracts, tools like Hardhat & Foundry, and standards like ERC-20 & ERC-721. This matters for teams that need to launch quickly and leverage existing DeFi primitives (e.g., forking Uniswap V3).
4,000+
Verified Contracts
02
Shared EVM: Interoperability & Liquidity
Native composability: Seamless integration with protocols across the EVM landscape (Arbitrum, Base, Polygon). This matters for applications that rely on cross-chain liquidity aggregation or need to be part of a larger DeFi money lego system.
$50B+
Cross-Chain TVL
03
App-Specific VM: Performance & Cost Control
Deterministic execution & optimized fees: Custom VMs (e.g., SVM, MoveVM, CosmWasm) enable sub-second finality and predictable, application-specific gas models. This matters for high-frequency trading DEXs or gaming protocols where latency and cost stability are critical.
< 1 sec
Finality Target
04
App-Specific VM: Sovereignty & Security
Isolated state & upgrade autonomy: Your application's performance and security are not impacted by unrelated network congestion or exploits. This matters for institutions or protocols requiring bespoke security models and controlled, permissioned upgrade paths.
0
External Congestion Risk
HEAD-TO-HEAD COMPARISON
Shared EVM vs App-Specific VM Feature Matrix
Direct comparison of execution environments for blockchain application development.
| Metric / Feature | Shared EVM (e.g., Ethereum, Arbitrum) | App-Specific VM (e.g., Solana SVM, Cosmos SDK) |
|---|---|---|
Execution Environment | Shared, Global | Isolated, Dedicated |
Max Theoretical TPS | ~100,000 (L2) | ~65,000 (Solana) |
Avg. Transaction Cost (Simple Swap) | $0.50 - $2.00 | < $0.001 |
Time to Finality (Optimistic) | ~12 min (L1) / ~1 min (L2) | ~400ms - 2s |
Developer Language | Solidity/Vyper (EVM-specific) | Rust, Go, CosmWasm (Flexible) |
State Contention | High (Shared Gas Market) | None (App-Owned Resources) |
Custom Fee Token | ||
Native MEV Resistance |
SHARED EVM VS APP-SPECIFIC VM
Performance & Cost Benchmarks
Direct comparison of execution environment performance, cost, and ecosystem factors.
| Metric | Shared EVM (e.g., Ethereum L2s) | App-Specific VM (e.g., Solana, Sui) |
|---|---|---|
Peak TPS (Sustained) | ~100-2,000 | ~50,000-65,000 |
Avg. Simple Swap Cost | $0.10 - $2.00 | < $0.001 |
Time to Finality | ~12 sec - 15 min | ~400ms - 2 sec |
State Bloat for App | Shared Burden | Isolated to App |
Custom Opcode Support | ||
Dominant Tooling Standard | EVM (Solidity/Vyper) | Multiple (Rust, Move, C) |
Mainnet Maturity | 2015-2020 | 2020-2024 |
pros-cons-a
ARCHITECTURAL TRADEOFFS
Shared EVM vs App-Specific VM
Key strengths and trade-offs at a glance for CTOs and architects choosing a foundational execution environment.
01
Shared EVM: Developer Velocity
Massive Tooling & Talent Pool: Leverage the entire Ethereum ecosystem—Hardhat, Foundry, MetaMask, Etherscan—and a developer base of 4,000+ monthly active devs (Electric Capital). This drastically reduces onboarding time and technical debt.
Ideal for: Teams launching quickly, leveraging existing DeFi protocols (Aave, Uniswap), or where hiring Solidity devs is a priority.
4,000+
Monthly Active Devs
100+
Audited Toolkits
02
Shared EVM: Composability & Liquidity
Native Interoperability: Smart contracts on the same VM (e.g., Arbitrum, Polygon) can call each other permissionlessly, enabling complex, capital-efficient DeFi money legos. This attracts and pools liquidity, with leading L2s holding $20B+ in TVL.
Ideal for: DeFi protocols, NFT marketplaces, and any application whose value scales with network effects and integrated services.
$20B+
Aggregate L2 TVL
03
App-Specific VM: Performance & Customization
Optimized Execution: Design a virtual machine tailored to your application's logic (e.g., a gaming-focused VM with faster state transitions or a privacy VM with built-in ZK-circuits). This can yield 10-100x higher TPS for your specific use case versus a general-purpose EVM.
Ideal for: High-throughput games (e.g., Illuvium), order-book DEXs, or applications requiring non-EVM cryptographic primitives.
10-100x
Potential TPS Gain
04
App-Specific VM: Sovereignty & Fee Capture
Full Stack Control: You govern the entire chain stack—consensus, execution, and fee market. This allows for predictable costs, maximal MEV capture, and protocol-owned revenue streams, unlike competing for block space on a shared L2.
Ideal for: Protocols with sustainable economic models (e.g., dYdX v4) that require guaranteed throughput and want to monetize their own infrastructure.
100%
Fee Sovereignty
06
App-Specific VM: Technical Debt & Isolation
Ecosystem Fragmentation: You must build or adapt all tooling (block explorers, wallets, oracles) and cannot directly integrate with EVM-native assets or protocols without complex, trust-minimized bridges. This increases long-term maintenance overhead.
Ideal to avoid if: Your roadmap depends on rapid integration with mainstream DeFi liquidity or your team lacks resources to maintain a full blockchain devops suite.
pros-cons-b
Shared EVM vs App-Specific VM
App-Specific VM: Pros and Cons
Key architectural trade-offs for protocol architects deciding between established standards and custom execution environments.
01
Shared EVM: Developer Velocity
Massive tooling ecosystem: Immediate access to 200+ battle-tested tools like Hardhat, Foundry, and MetaMask. This matters for teams needing to launch quickly and leverage existing Solidity talent pools.
4,000+
Monthly Active Devs
02
Shared EVM: Composability & Liquidity
Native interoperability: Seamless integration with the $50B+ DeFi ecosystem on chains like Arbitrum and Polygon. This matters for protocols whose value depends on cross-protocol liquidity and user migration (e.g., lending, DEX aggregators).
$50B+
DeFi TVL
03
App-Specific VM: Performance & Cost Control
Deterministic fee structure: Eliminates gas auction wars and MEV risks by setting fixed, predictable transaction costs. This matters for high-frequency trading apps (e.g., dYdX on StarkEx) or social apps requiring sub-cent fees.
< $0.001
Avg. Tx Cost
05
Shared EVM: Security Auditing
Mature security landscape: Leverage years of accumulated knowledge from auditors like OpenZeppelin and Trail of Bits on EVM vulnerabilities. This matters for teams with limited in-house security expertise managing high-value assets.
1000+
Audited Contracts
06
App-Specific VM: Sovereignty & Upgradeability
Uncontested governance: Control your own upgrade path and fee market without community consensus delays. This matters for enterprise-grade applications (e.g., Citi's tokenization pilots) requiring strict operational control and compliance.
CHOOSE YOUR PRIORITY
Decision Framework: When to Choose Which
Shared EVM (e.g., Arbitrum, Base) for DeFi
Verdict: The default choice for liquidity and composability. Strengths:
- Massive TVL & Liquidity: Direct access to billions in existing capital from Ethereum L1 and other L2s via bridges.
- Battle-Tested Composability: Seamless integration with protocols like Uniswap V3, Aave, and Compound. Developers can fork and deploy with minimal changes.
- Established Tooling: Full support from MetaMask, Etherscan, Hardhat, and The Graph. Trade-off: You compete for block space during congestion, leading to variable fees.
App-Specific VM (e.g., dYdX Chain, Hyperliquid) for DeFi
Verdict: Optimal for high-frequency, orderbook-based trading. Strengths:
- Predictable Performance & Cost: Dedicated throughput ensures sub-second block times and stable, ultra-low fees for your users.
- Custom Fee Models: Implement your own token for gas and capture value (e.g., dYdX's fee token).
- Tailored State Machine: Optimize the VM specifically for order-matching and margin calculations. Trade-off: You must bootstrap your own liquidity and ecosystem from scratch.
verdict
THE ANALYSIS
Final Verdict and Strategic Recommendation
A data-driven conclusion on choosing between the shared EVM ecosystem and an app-specific VM for your next blockchain project.
Shared EVM excels at developer velocity and ecosystem leverage because it provides instant access to a massive, interoperable network of tools, users, and capital. For example, deploying on Arbitrum or Polygon gives you immediate compatibility with a $50B+ DeFi TVL, battle-tested tools like Foundry and Hardhat, and security audit firms fluent in Solidity. The network effects are quantifiable: projects on leading L2s like Arbitrum can achieve 50-100+ TPS with sub-cent fees, tapping into an existing user base of millions.
App-Specific VMs (e.g., Solana VM, Fuel VM, Cosmos SDK) take a different approach by optimizing for maximum performance and sovereignty. This results in a trade-off: you sacrifice broad, out-of-the-box compatibility for superior technical specs. A chain built with the Cosmos SDK can achieve sub-second finality and customize its fee market, while a Solana-based app-chain can target 50,000+ TPS for its specific use case. However, this requires building or integrating your own tooling, bridges, and liquidity from scratch.
The key architectural trade-off is between composability and optimization. A shared EVM is a pre-fabricated city with established roads (standards), utilities (oracles like Chainlink), and commerce (DEXs like Uniswap). An app-specific VM is a greenfield industrial park where you can design the perfect layout for your factory but must build the connecting highways yourself.
Consider the Shared EVM if your priority is: - Time-to-market and ecosystem access - Maximizing composability with other DeFi/NFT protocols - Leveraging a deep talent pool of Solidity developers - Your application's performance needs are satisfied by ~100 TPS and sub-dollar fees.
Choose an App-Specific VM when you prioritize: - Extreme, predictable performance (e.g., >10k TPS, sub-second finality for a game) - Full control over the stack (consensus, fee model, data availability) - Specialized execution not possible on the EVM (e.g., parallel processing) - You have the resources to bootstrap your own validator set and ecosystem tools.
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