The EVM running on Hedera offers substantial improvements over Ethereum with transaction finality and fair ordering. These enhancements come with drawbacks that must be addressed before mass deployments can take place.

Concerns in current implementation:

  • 800kb contract state size limit
  • 25 tps


  • Reduce or remove on-graph state size dependence
  • Validate communication through Hashgraph Consensus Service
  • Provide native-like Ethereum smart contract experience
  • Provide migration or native (current) smart contract support

Important Requirements:

  • Encourage Hedera usage as L0.
  • Pay any fees with native HBAR. This encourages usage of the Network token and reduces overall ux friction.
  • Encourage Validators with reward fee. The total made up of the Consensus fee (direct from Hedera) and a Validator fee.
  • Becoming a validator can be fully permission-less with a substantial security deposit (stake) of ie: 125,000 hbar.
  • Main network should ensure data validity

We looked into a couple of smart contract implementations that can be applied (more than one can be used):

  1. Ethereum Fork where blocks are sent via HCS.  ie:
  2. Token Ledger. ie: Simple Ledger Protocol from BCH
  3. DappChain contracts with validators. ie:
  4. Off-chain Virtual Machine Implemented via current Smart Contract service. AVM:
  5. Offloading state to IPFS-like network. ie: 93%+ reduction would mean a 14x increase in smart contract state size availability.