CERTAIN BLOCKCHAINS, SUCH AS THE ETHEREUM NETWORK CAN STORE AN ADDITIONAL DATATYPE COMPARED TO THE DATA TYPES MENTIONED IN “WHAT IS BLOCKCHAIN” WHICH WERE TRANSACTIONS, HASHED AND NONCE. THIS ADDITIONAL DATA TYPE IS THE SO CALLED “SMART CONTRACT”, WHICH IS A PROGRAMMING CODE THAT CAN BE STORED ON THE BLOCKCHAIN. IT IS NOT ENOUGH IN IT SELF TO STORE THESE PROGRAMMING CODES, THEY HAVE TO RAN AS WELL. FOR THIS PURPOSE THE ETHEREUM VIRTUAL MACHINE (EVM) WAS CREATED. THIS IS A VIRTUAL COMPUTER, THAT IS CAPABLE OF RUNNING THE PROGRAMMING CODES THAT ARE ON THE CHAIN. RUNNING THIS MACHINE COSTS CRYPTO MONEY OF THE GIVEN BLOCKCHAIN, IN OUR CASE ETHER. THE ACTORS OF THE NETWORK OF THE BLOCKCHAIN CAN CHOOSE TO USE THEIR COMPUTING POWER TO OPERATE THIS VIRTUAL MACHINE INSTEAD OF MINING. THIS COMPUTATIONAL POWER IS WHAT ONE HAS TO PAY FOR WHEN RUNNING A SMART CONTRACT.

IT COSTS CRYPTO MONEY TO ADD A NEW SMART CONTRACT TO THE BLOCKCHAIN OR TO RUN THE PROGRAMMING CODE THAT IS ON THE CHAIN ALREADY. SUCH A RUN COULD BE FOR EXAMPLE TO ADD THE SERIAL NUMBER OF A PRODUCT ON THE BLOCKCHAIN. READING THE DATA FROM THE BLOCKCHAIN HOWEVER IS COST FREE.