EVM stands for Ethereum Virtual Machine and is the runtime environment for smart contracts in Ethereum. It is a 256-bit register stack, designed to run the same code exactly as intended. It provides a secure environment and a complete isolation of the smart contract code from the rest of the Ethereum network while allowing the contract to access the blockchain and interact with other contracts.
The EVM is responsible for processing the transactions and executing the code of all the smart contracts on the Ethereum network. It is also responsible for providing the security of the Ethereum network by preventing malicious or unauthorized code from being executed.
To write a smart contract, you first need to write the code in a language like Solidity or Vyper. This code is then compiled into bytecode, which is the language the EVM understands. The bytecode is then stored on the blockchain, where it can be accessed and executed by the EVM.
When a transaction is made, the EVM processes it, verifies its accuracy and executes the code. It then updates the blockchain with the result of the transaction, and the smart contract is complete.
The EVM is a powerful tool for developers, as it allows for complex applications to be built on the Ethereum network. It provides a secure and reliable platform for developers to create and deploy their applications.
Audience
The target audience for an EVM Tutorial would be project managers and team members who are responsible for the successful implementation of a project. This tutorial would provide an introduction to the concepts of earned value management and the tools and techniques used to track and monitor project performance. It would also be beneficial for project stakeholders and senior management who need to understand how the project is progressing and how the budget is being spent.
Prerequisites
In order to complete an EVM tutorial, you should have a basic understanding of computer programming, as well as blockchain technology. Additionally, you should also be familiar with the Ethereum platform and its programming language, Solidity. Finally, it is helpful to have a basic understanding of cryptography and its applications in the blockchain.
EVM – Overview
Ethereum Virtual Machine (EVM) is a decentralized platform that allows developers to build, deploy and run decentralized applications (DApps) on the Ethereum blockchain. It is a Turing-complete virtual machine that runs on the Ethereum blockchain and is responsible for executing smart contracts and transactions. The EVM can be thought of as a “virtual computer” that runs on the Ethereum blockchain and is responsible for executing all programs and smart contracts written in the Ethereum Virtual Machine (EVM) bytecode. With the EVM, developers are able to create distributed applications (dApps) that run on the Ethereum blockchain and can be used for a variety of purposes, ranging from financial applications to voting systems. The EVM is also the basis for the Ethereum cryptocurrency, Ether.
EVM – Basic Elements
EVM stands for Ethereum Virtual Machine, and it is a crucial component of the Ethereum blockchain. It is a virtual machine that is responsible for executing smart contracts on the Ethereum network. It is the backbone of the Ethereum network, and it is responsible for verifying the transactions, executing the code, and ensuring that the network remains secure. It is a Turing-complete virtual machine, which means that it can execute any code, provided that it is written correctly and within the limits of the Ethereum protocol. Additionally, it is capable of performing complex calculations, such as those needed for cryptographic signatures or for computing digital asset prices. The EVM is also responsible for managing the Ethereum ledger, which is maintained by its consensus algorithm.
Planned Value (PV): This is the budgeted cost for the work that has been planned and scheduled to be completed in a particular period. It is also referred to as the budgeted cost of work scheduled (BCWS).
Actual Cost (AC): This is the total amount of money spent on the work that was actually completed in a particular period. It is also referred to as the actual cost of work performed (ACWP).
Earned Value (EV): This is the budgeted cost of the work that was actually completed in a particular period. It is also referred to as the budgeted cost of work performed (BCWP). It is the sum of the planned value and the actual cost, and it is used to measure project performance.
EVM – Cost Variance
The Cost Variance (CV) is a measure of the difference between the actual cost of a project and the budgeted or planned cost of the project. It is expressed as a percentage of the budgeted cost, also known as the cost performance index (CPI). A positive CV indicates that the project is under budget and a negative CV indicates that the project is over budget. CV can be calculated by subtracting the actual cost from the budgeted cost and dividing it by the budgeted cost.
Cost Variance %
The Cost Variance % is a measure of the difference between the actual cost of a project and the budgeted cost of the project. It is calculated by dividing the cost variance by the budgeted cost and multiplying by 100. It is expressed as a percentage and can be either positive or negative. A positive cost variance indicates that the project is under budget and a negative cost variance indicates that the project is over budget.
Cost Performance Indicator
A Cost Performance Indicator (CPI) is a metric used to measure the cost efficiency of a project. It is calculated by dividing the total project cost (budget) by the total project output (work completed). CPI is typically expressed as a percentage, with a higher percentage indicating higher cost efficiency. CPI is used to track the performance of a project over its lifecycle and can help determine whether a project is running over or under budget.
To Complete Cost Performance Indicator
A Cost Performance Indicator (CPI) is a metric used to measure the cost efficiency of a project or program. It is calculated by dividing the total actual cost of the project or program by the total planned cost. A CPI of 1.0 indicates that the project is on budget. A CPI greater than 1.0 indicates that the project is over budget, while a CPI lower than 1.0 indicates that the project is under budget. The CPI can be used to identify areas where cost savings can be made or to identify projects or programs that are not cost effective.
EVM – Schedule Variance
Schedule Variance (SV) is a measure of the difference between the actual duration of a project and the planned duration of the project. It is calculated by subtracting the project’s planned duration from the actual duration. A positive SV indicates that the project is taking longer than planned, while a negative SV indicates that the project is taking less time than planned.
Schedule Variance %
Schedule variance percentage is a measure of how much a project has deviated from its planned schedule. It is calculated by subtracting the planned schedule from the actual schedule, then dividing that result by the planned schedule. The resulting percentage represents how much the project has gone over or under its planned schedule. For example, if a project was planned to be completed in 10 weeks and it was completed in 8 weeks, the schedule variance percentage would be 20%.
Schedule Performance Indicator
A Schedule Performance Indicator (SPI) is a measure of how well a project is performing in relation to its schedule. It is calculated by dividing the amount of work that has been completed by the amount of work that should have been completed by a certain date. SPI is used to identify any potential issues with the project schedule, and to help inform decisions about project performance.
To Complete Schedule Performance Indicator
1. Identify the performance indicator: The performance indicator should be chosen to measure the success of the schedule performance.
2. Establish a baseline: Establish a baseline level of performance by collecting and analyzing data on the current performance of the schedule.
3. Set goals: Develop goals that are specific, measurable, achievable, relevant, and time-bound (SMART) and that measure progress towards the desired performance.
4. Monitor and measure progress: Monitor and measure progress towards the goals by collecting and analyzing data.
5. Take corrective action: If the goals are not being met, take corrective action to improve performance.
6. Evaluate the impact of changes: Evaluate the impact of the corrective action taken to ensure that performance has improved.
7. Celebrate success: Celebrate success when performance goals are achieved.
EVM – Miscellaneous Formula
Budget at Completion
The total budget at completion is the total amount of money that was allocated for the project. This includes all costs associated with the project, such as labor, materials, and other expenses. The budget at completion should be compared to the actual costs of the project to determine if the project was completed within the allocated budget.
Estimate to Complete
Estimate to Complete (E2C) in EVM (Earned Value Management) is a technique used to measure a project’s progress and performance. The E2C value is calculated by taking the total planned value of the remaining work and subtracting the current earned value (the amount of work completed to date). This can help project managers better understand where their project stands and make more informed decisions. E2C is one of the most important tools in EVM and is used to estimate the cost and schedule performance of a project.
Estimate at Completion
In Earned Value Management (EVM), the Estimate at Completion (EAC) is a predictive cost estimate of a project, based on its current status, that is used to forecast the total cost of a project. It is calculated by taking into consideration the projected remaining work and the associated costs for that work. The EAC can be determined by using the following formula:
EAC = BAC / CPI
where BAC is the Budgeted at Completion and CPI is the Cost Performance Index.
Variance at Completion
Variance at completion is the difference between the budgeted cost of a project and the actual cost of the project at the completion of the project. It is a measure of the degree to which the project cost is over or under budget. It is used to identify areas of under or overspending and to assess the overall cost performance of the project.
EVM – Examples
EVM (Ethereum Virtual Machine) is a decentralized virtual machine that is used to execute smart contracts on the Ethereum blockchain. It is designed to be Turing-complete, meaning that any computation can be performed as long as it is within the constraints of the blockchain.
Example 1: A simple smart contract to transfer tokens from one account to another. This contract is initialized with the two account addresses and the number of tokens to be transferred. When the contract is executed, it deducts the tokens from the sender’s account and adds them to the receiver’s account.
Example 2: An online auction contract. This contract is used to facilitate an online auction. It is initialized with the starting bid, the auction duration, and the details of the item being auctioned. When the contract is executed, it records bids from participants and keeps track of the highest bidder. When the auction ends, it transfers the item to the highest bidder and sends them the winning bid amount.