GitHub Logo HIP-26: Migrate Smart Contract Service EVM to Hyperledger Besu EVM

Author Daniel Ivanov, Danno Ferrin
Status Final
Needs Council Approval Yes
Type Standards Track
Category Service
Created 2021-09-16
Updated 2023-02-01
Release v0.22.0


Replace the Ethereum Virtual Machine (EVM) engine in Hedera Services, moving from an EthereumJ based engine to a Hyperledger Besu based engine


The current codebase that implements EVM Smart Contract transactions is out of date. It is based on EthereumJ and the upstream project has not implemented any hard forks since the St. Petersburg hard fork in early 2019. Some changes to opcodes and precompiled contracts make support of newer Solidity versions difficult. The integration also required inclusion of the entire EthereumJ codebase, as the EVM was not fully segregated from the client code.


Hyperledger Besu is an Ethereum Mainnet compatible EVM client with an EVM that is severable from the codebase. It is also supported by an active maintainer community and is a “Graduated Project” from the Hyperledger Project. The codebase is also up-to-date with current Ethereum Mainnet hard forks (London as of the writing of this HIP) and has a roadmap aiming to support future Ethereum features such as Proof of Stake migration and MEV integration.

With Besu’s current maintainers it will be possible to extract the EVM code needed to form a reusable library and not include any unneeded support code such as Ethereum networking and merkle tree support. Going forward it will be easier to maintain parity with Ethereum Mainnet evolutions such as the EVM container formats and new opcodes/precompiled contracts.

User stories

As a developer I want to execute EVM contracts with current versions of Solidity and with an EVM that is more compatible with Ethereum Mainnet than our current EVM.


This release targets a swap between EthereumJ and Besu with a minimum of compatibility changes.


The current EthereumJ dependency is to be removed from the codebase and Hedera optimised fork of Besu based on the upcoming 21.10.0 release is to be introduced as a dependency. The Besu integrations will be configured to use the “London” hard fork of Ethereum Mainnet with some necessary changes outlined in [Backwards Compatibility].

All operations (transition logics) in the Smart Contract Service will be refactored to a new model-based design.

The current SmartContractRequestHandler is to be removed along with the related EthereumJ execution logic. Instead, two new components will be introduced - EvmExecutor and HederaWorldUpdater. The executor will be preparing and running the MessageFrames of the EVM until halt.

Account and State access (read/write) will be provided to Besu through implementation of a WorldUpdater. The updater will expose an API to Besu. The component will utilise Postgres for bytecode and storage persistence (same as the current EthereumJ integration).

Account Abstraction

The Smart Contract internal logic will be updated to more fully conform to Hedera’s account abstractions.

1) Addresses in Hedera are utilising sequence number design compared to the hash based design in the default EVM implementation. 2) Hedera’s account abstraction requires a sponsor and expiry for every contract/account created.

The following changes will be made to Besu in order to mitigate the fundamental changes described above:

  • New HederaCreate operation in Besu will be introduced to support the CREATE opcode. The operation will compute new contract addresses based on sequence numbers, and matches existing behavior with EthereumJ.
  • AbstractWorldUpdater will be extended to handle MessageFrame reverts to reclaim the allocated sequence numbers during MessageFrame execution.
  • MutableAccount will be extended to support sponsor and expiry properties.

Backwards Compatibility

Changes unrelated to “London” hard fork

The following changes will be made to the Opcodes, outside of London hard fork support. These are done to better reflect the nature of the Hedera platform.


The CREATE2 operation will not be supported and return an illegal opcode failure. The implementation in hedera of CREATE and CREATE2 are identical, and this creates a usability problem with contracts that expect CREATE2 to operate in the specified manner. This stems from the differences in Hedera’s and Ethereum’s account mapping.


The COINBASE operation will return the funding account (Hedera Fee collecting account which on mainnet is 0.0.98). The implementation at the moment returns the 0.0.0 account and 0x0 EVM address.


The GASLIMIT operation will return the gasLimit of the transaction. The transaction gasLimit will be the lowest of the gas limit requested in the transaction or a global upper gas limit configured for all smart contracts. The current maximum configured gas limit per transaction is 300,000 gas.

Enumerating created contracts in ContractCreateResult

Previously in ContractCreateResult responses we would list sub-contracts created as a part of the ContractCreate operation in the createdContractIDs field, but not the contract that was directly created as part of the call. Now all contracts that are created as a consequence of the ContractCreate call are enumerated, including the primary new contract.

Self Destruct during Contract Creation

If a contract was being created and the new contract called SELFDESTRUCT in the initcode we would not mark the MerkleAccount isDeleted field as true. If the SELFDESTRUCT was called as part of a function call we would mark it as true.

Now regardless of whether the call to SELFDESTRUCT occurred in initcode or in a function call the isDeleted field is set to true.

Errors moving from PreCheck errors to Transaction Errors

Code relating to validation errors has been cleaned up. Only errors detectable in GRPC objects will cause precheck errors and all other errors will be reported as part of the transaction.

The following errors in contract creation are moving out of precheck errors and into transaction errors: INVALID_RENEWAL_PERIOD, AUTORENEW_DURATION_NOT_IN_RANGE, CONTRACT_NEGATIVE_GAS, CONTRACT_NEGATIVE_VALUE, MEMO_TOO_LONG, INVALID_ZERO_BYTE_IN_STRING.

The following errors in contract call are moving out of precheck errors and into transaction errors: CONTRACT_NEGATIVE_GAS, CONTRACT_NEGATIVE_VALUE.

Deprecated HAPI properties

The fileID property in the ContractUpdate operation (found in the ContractUpdateTransactionBody protobuf) will be deprecated. The wording of the field implies it updates the contract code while the comments indicate that it the assertion of where the initcode originated from will be changed. Ethereum contracts are expected to be immutable once deployed and so neither variation is appropriate, hence the field will be deprecated.

The maxResultSize property in the ContractCallLocal operation (found in the ContractCallLocalQuery) will be deprecated. In order to calculate the effective result size the entire operation needs to be executed, and then at the last moment an error is returned if the result is too large. The result is not stored in server ram nor is it stored in storage, so there is no fees associated with larger queries. Because of this any errors that setting it is hoping to avoid would still occur on the server and different errors would be returned instead. The limitations of Ethereum Gas already provide a reasonable limitation on unexpectedly large results. Hence this property will be ignored if specified and all results will be returned.

Upgrade to “London” Hard Fork

The smart contract platform will be upgraded to support the EVM visible changes for the “London” hard fork. This includes changes introduced in the “Istanbul” and “Berlin” hard forks. Changes relating to block production and data serialization (such as the fee market, intrinsic gas costs, and transaction formats) will not be implemented because they are not relevant to Hedera’s architecture.


The BASEFEE opcode will return zero. Hedera does not use the Fee Market mechanism this is designed to support.

Reject Contracts starting with 0xFE

Hedera ContractCreate transactions and CREATE opcode calls will fail if the first bytes of the smart contract is 0xFE. Extending this to the ContractCreate transaction mirrors how Ethereum contract deployments typically operate.


This opcode will operate as expected with no change from Ethereum Mainnet.


The CHAINID opcode will return 295 (hex 0x0127) for mainnet, 296 ( hex 0x0128) for testnet, and 297 (hex 0x0129) for previewnet.

Blake2 compression function F precompile

The precompiled contract operates the same as on Ethereum Mainnet.

Gas Schedule Changes

The Smart Contract Service will use the Gas Schedule from the “London” hard fork. Notable changes include warm/cold account access and refund reductions.

Warm and Cold Account and Slot Access

Berlin introduced the notion of warm and cold accounts and storage slots. The first access to an account or storage slot in a transaction will need to pay the “cold” costs and all subsequent calls will pay the lower “warm” access costs. EIP-2929 contains the full details of the new cost scheduling.

Hedera does not at this time allow for “pre-warming” addresses and storage slots as part of the transaction as seen in EIP-2930. Future HIPs may support this scheme.

Gas Refund Reductions and Eliminations

In the London gas schedule the amount of gas that can be returned from storage access usage patterns has been significantly reduced. Account refunds from SELFDESTRUCT have been completely removed.

Table of Gas Cost Changes

Operation Current Hedera London Cost HIP-26 Cost
Code deposit Floating Hedera
Storage Cost per byte
200 * bytes Max of London
or Hedera
(cold account)
20 2600 2600
(warm account)
20 100 100
EXP 10 + 10/byte 10 + 50/byte 10 + 50/byte
(cold account)
20 + Mem 2600 + Mem 2600 + Mem
(warm account)
20 + Mem 100 + Mem 100 + Mem
(cold account)
400 2600 2600
(warm account)
400 100 100
(cold account)
20 2600 2600
(warm account)
20 100 100
Floating Hedera
Ram Cost per byte
375 + 375*topics
+ data Mem
Max of London
or Hedera
(cold slot)
50 2100 2100
(warm slot)
50 100 100
(new slot)
Floating Hedera
Storage Cost per byte
22,100 Max of London
or Hedera
(existing slot,
cold access)
5,000 2,900 2,900
(existing slot,
warm access)
5,000 100 100
All new
slot charges
Only transient
storage slots
Only transient
storage slots
CALL et al.
(cold recipient)
40 2,600 2,600
CALL et al.
(warm recipient)
40 100 100
CALL et al.
Hbar/Eth Transfer Surcharge
9,000 9,000 9,000
CALL et al.
New Account Surcharge
revert 25,000 revert
(cold beneficiary)
0 2600 2600
(warm beneficiary)
0 0 0

The terms ‘warm’ and ‘cold’ in the above table correspond with whether the account or storage slot has been read or written to within the current smart contract transaction, even if within a child call frame.

‘CALL et al.’ includes with limitation CALL, CALLCODE, DELEGATECALL, and STATICCALL

Security Implications

Between Besu and EthereumJ there is no material difference in the security attack surfaces. The same specifications and Hedera integrations will exist.

Reference Implementation

Hedera Services PR #2208

Rejected Ideas

Migration to another Smart Contract VM

The EVM is not the only smart contract platform, however it is the platform that has the most widespread use in terms of total users and total numbers of DLTs supporting the EVM. One alternative of note is WASM and eWASM. The Ethereum Foundation’s eWASM project has stagnated over the last two years and is not under active development. It also did not achieve the performance goals it had set, often running slower than optimized EVM implementations. WASM as a standalone technology lacks determinism in some instructions it supports (mostly floating point operations) as well as lacking resource metering and limitations.

Other leading smart contract platforms (TEAL, Michelson, MoveVM, etc.) are strongly tied to their host chain and are not used with other chains and have not gained cross-DLT support. A few chains that have custom smart contract platforms have added EVM compatability layers or libraries for their systems too (Aurora/NEAR and Arbitrum most notably).

Apart from EVM being one of the best choices there are also issues relating to migrating to other smart contract systems that staying with EVM avoids. While there may be future changes in supported services keeping the Smart Contract Service on the EVM provides the least amount of backwards compatibility issues.

Eliminating Smart Contract Service Support

Eliminating the EVM as a whole would foreclose future growth of the Hedera Platform in the “on-chain” smart contract arena.

Open Issues

Currently, no open issues.



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