# Ethereum (EVM) Compatibility and Smart Contracts

In addition to processing transactions, Ecrox nodes also permanently store and update the code and current state of smart contracts. Smart contracts, essentially persistent scripts, are computer programs that individuals can interact with by sending transactions to invoke their functions. These contracts also have their own accounts capable of holding token balances.

On Ecrox nodes, smart contracts operate within a specialized environment known as the 'virtual machine' (VM). The Ecrox blockchain is currently highly compatible with Ethereum's virtual machine (EVM), ensuring seamless functionality for smart contracts and decentralized applications (dApps) deployed on Ethereum or other EVM-compatible chains. This compatibility extends to standards such as ECROX-20 and ECROX-721, meaning these contracts can operate on Ecrox without requiring modifications to their code.

In essence, any smart contract or dApp deployable on Ethereum or a compatible chain can also run effectively on Ecrox, facilitating interoperability and expanding the potential applications within the Ecrox ecosystem.


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