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EVM is the Ethereum Virtual Machine, the protected, distributed "sandbox area" (virtual machine) where contract execution occurs, replicated on every node in the network. EVM is also the name of the bytecode that runs on the virtual machine -- what Solidity, Serpent and LL get compiled down to before deployment.

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Is there a way to stop wallet homomorph attacks without ditching the create2 opcode?

Even without create2, people could still do address poisoning attacks...it would just be a little harder to generate the addresses but still not hard enough to make a difference.
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