The Ethereum Virtual Machine (EVM) is a decentralized computing environment that allows developers to run smart contracts on the Ethereum blockchain. It acts as a runtime environment for executing code, ensuring that all transactions and operations are processed consistently across the network. The EVM is crucial for maintaining the integrity and security of the blockchain. Smart contracts are self-executing agreements with the terms directly written into code. The EVM enables these contracts to operate without the need for intermediaries, making transactions faster and more efficient. By providing a standardized platform, the EVM fosters innovation and collaboration within the Ethereum ecosystem.