evm: refactor state transition (#41)

* evm: keeper statedb refactor * keeper: implement stateDB account, balance, nonce and suicide functions * keeper: implement stateDB code and iterator functions * keeper: implement stateDB log and preimage functions * update code to use CommitStateDB * tests updates * journal changes (wip) * cache fields * journal and logs * minor cleanup * evm: state transition refactor * evm: unpack revert errors * evm: update state transition (wip) * evm: remove journal related changes * evm: delete empty account code and storage state * update gas limit * evm: header hash to/from context * evm: minor params and state transition changes * ante: state transition changes * ante: refactor default sig gas consumer * ante: ignore gas costs from ops other than intrinsic gas * ante: CanTransferDecorator * evm: refund gas * update comments * state transition comments * ante: CanTransfer and AccessList decorator tests * evm: cleanup state transition * ignore nonce increment during ante handler on contract creation * fix ante tests * more test fixes
2021-06-02 04:52:53 -04:00 · 2021-06-02 04:52:53 -04:00 · b77aab43bb
commit b77aab43bb
parent 3cf3854529
7 changed files with 612 additions and 70 deletions
--- a/app/ante/ante.go
+++ b/app/ante/ante.go
@ -67,6 +67,8 @@ func NewAnteHandler(
 						NewEthAccountVerificationDecorator(ak, bankKeeper, evmKeeper),
 						NewEthNonceVerificationDecorator(ak),
 						NewEthGasConsumeDecorator(ak, bankKeeper, evmKeeper),
+						NewCanTransferDecorator(evmKeeper),
+						NewAccessListDecorator(evmKeeper),
 						NewEthIncrementSenderSequenceDecorator(ak), // innermost AnteDecorator.
 					)

--- a/app/ante/ante_test.go
+++ b/app/ante/ante_test.go
@ -40,7 +40,7 @@ func (suite AnteTestSuite) TestAnteHandler() {
 		{
 			"success - CheckTx (contract)",
 			func() sdk.Tx {
-				signedContractTx := evmtypes.NewMsgEthereumTxContract(suite.app.EvmKeeper.ChainID(), 2, big.NewInt(10), 100000, big.NewInt(1), nil, nil)
+				signedContractTx := evmtypes.NewMsgEthereumTxContract(suite.app.EvmKeeper.ChainID(), 1, big.NewInt(10), 100000, big.NewInt(1), nil, nil)
 				signedContractTx.From = addr.Hex()

 				tx := suite.CreateTestTx(signedContractTx, privKey, 1)
@ -51,7 +51,7 @@ func (suite AnteTestSuite) TestAnteHandler() {
 		{
 			"success - ReCheckTx (contract)",
 			func() sdk.Tx {
-				signedContractTx := evmtypes.NewMsgEthereumTxContract(suite.app.EvmKeeper.ChainID(), 3, big.NewInt(10), 100000, big.NewInt(1), nil, nil)
+				signedContractTx := evmtypes.NewMsgEthereumTxContract(suite.app.EvmKeeper.ChainID(), 1, big.NewInt(10), 100000, big.NewInt(1), nil, nil)
 				signedContractTx.From = addr.Hex()

 				tx := suite.CreateTestTx(signedContractTx, privKey, 1)
@ -62,7 +62,7 @@ func (suite AnteTestSuite) TestAnteHandler() {
 		{
 			"success - DeliverTx",
 			func() sdk.Tx {
-				signedTx := evmtypes.NewMsgEthereumTx(suite.app.EvmKeeper.ChainID(), 4, &to, big.NewInt(10), 100000, big.NewInt(1), nil, nil)
+				signedTx := evmtypes.NewMsgEthereumTx(suite.app.EvmKeeper.ChainID(), 1, &to, big.NewInt(10), 100000, big.NewInt(1), nil, nil)
 				signedTx.From = addr.Hex()

 				tx := suite.CreateTestTx(signedTx, privKey, 1)
@ -73,7 +73,7 @@ func (suite AnteTestSuite) TestAnteHandler() {
 		{
 			"success - CheckTx",
 			func() sdk.Tx {
-				signedTx := evmtypes.NewMsgEthereumTx(suite.app.EvmKeeper.ChainID(), 5, &to, big.NewInt(10), 100000, big.NewInt(1), nil, nil)
+				signedTx := evmtypes.NewMsgEthereumTx(suite.app.EvmKeeper.ChainID(), 2, &to, big.NewInt(10), 100000, big.NewInt(1), nil, nil)
 				signedTx.From = addr.Hex()

 				tx := suite.CreateTestTx(signedTx, privKey, 1)
@ -84,7 +84,7 @@ func (suite AnteTestSuite) TestAnteHandler() {
 		{
 			"success - ReCheckTx",
 			func() sdk.Tx {
-				signedTx := evmtypes.NewMsgEthereumTx(suite.app.EvmKeeper.ChainID(), 2, &to, big.NewInt(10), 100000, big.NewInt(1), nil, nil)
+				signedTx := evmtypes.NewMsgEthereumTx(suite.app.EvmKeeper.ChainID(), 3, &to, big.NewInt(10), 100000, big.NewInt(1), nil, nil)
 				signedTx.From = addr.Hex()

 				tx := suite.CreateTestTx(signedTx, privKey, 1)
--- a/app/ante/eth.go
+++ b/app/ante/eth.go
@ -12,18 +12,23 @@ import (
 	"github.com/ethereum/go-ethereum/common"
 	"github.com/ethereum/go-ethereum/core"
 	ethtypes "github.com/ethereum/go-ethereum/core/types"
+	"github.com/ethereum/go-ethereum/core/vm"
+	"github.com/ethereum/go-ethereum/params"
 )

 // EVMKeeper defines the expected keeper interface used on the Eth AnteHandler
 type EVMKeeper interface {
+	vm.StateDB
+
 	ChainID() *big.Int
 	GetParams(ctx sdk.Context) evmtypes.Params
 	GetChainConfig(ctx sdk.Context) (evmtypes.ChainConfig, bool)
 	WithContext(ctx sdk.Context)
 	ResetRefundTransient(ctx sdk.Context)
+	NewEVM(msg core.Message, config *params.ChainConfig) *vm.EVM
 }

-// EthSigVerificationDecorator validates an ethereum signature
+// EthSigVerificationDecorator validates an ethereum signatures
 type EthSigVerificationDecorator struct {
 	evmKeeper EVMKeeper
 }
@ -88,7 +93,12 @@ func NewEthAccountVerificationDecorator(ak AccountKeeper, bankKeeper BankKeeper,
 	}
 }

-// AnteHandle validates the signature and returns sender address
+// AnteHandle validates checks that the sender balance is greater than the total transaction cost.
+// The account will be set to store if it doesn't exis, i.e cannot be found on store.
+// This AnteHandler decorator will fail if:
+// - any of the msgs is not a MsgEthereumTx
+// - from address is empty
+// - account balance is lower than the transaction cost
 func (avd EthAccountVerificationDecorator) AnteHandle(ctx sdk.Context, tx sdk.Tx, simulate bool, next sdk.AnteHandler) (newCtx sdk.Context, err error) {
 	if !ctx.IsCheckTx() {
 		return next(ctx, tx, simulate)
@ -114,7 +124,8 @@ func (avd EthAccountVerificationDecorator) AnteHandle(ctx sdk.Context, tx sdk.Tx

 		acc := avd.ak.GetAccount(infCtx, from)
 		if acc == nil {
-			_ = avd.ak.NewAccountWithAddress(infCtx, from)
+			acc = avd.ak.NewAccountWithAddress(infCtx, from)
+			avd.ak.SetAccount(infCtx, acc)
 		}

 		// validate sender has enough funds to pay for gas cost
@ -143,8 +154,8 @@ func NewEthNonceVerificationDecorator(ak AccountKeeper) EthNonceVerificationDeco
 	}
 }

-// AnteHandle validates that the transaction nonce is valid (equivalent to the sender account’s
-// current nonce).
+// AnteHandle validates that the transaction nonces are valid and equivalent to the sender account’s
+// current nonce.
 func (nvd EthNonceVerificationDecorator) AnteHandle(ctx sdk.Context, tx sdk.Tx, simulate bool, next sdk.AnteHandler) (newCtx sdk.Context, err error) {
 	// no need to check the nonce on ReCheckTx
 	if ctx.IsReCheckTx() {
@ -201,10 +212,17 @@ func NewEthGasConsumeDecorator(ak AccountKeeper, bankKeeper BankKeeper, ek EVMKe
 // AnteHandle validates that the Ethereum tx message has enough to cover intrinsic gas
 // (during CheckTx only) and that the sender has enough balance to pay for the gas cost.
 //
-// Intrinsic gas for a transaction is the amount of gas
-// that the transaction uses before the transaction is executed. The gas is a
-// constant value of 21000 plus any cost inccured by additional bytes of data
-// supplied with the transaction.
+// Intrinsic gas for a transaction is the amount of gas that the transaction uses before the
+// transaction is executed. The gas is a constant value plus any cost inccured by additional bytes
+// of data supplied with the transaction.
+//
+// This AnteHandler decorator will fail if:
+// - the transaction contains more than one message
+// - the message is not a MsgEthereumTx
+// - sender account cannot be found
+// - transaction's gas limit is lower than the intrinsic gas
+// - user doesn't have enough balance to deduct the transaction fees (gas_limit * gas_price)
+// - transaction or block gas meter runs out of gas
 func (egcd EthGasConsumeDecorator) AnteHandle(ctx sdk.Context, tx sdk.Tx, simulate bool, next sdk.AnteHandler) (newCtx sdk.Context, err error) {
 	// get and set account must be called with an infinite gas meter in order to prevent
 	// additional gas from being deducted.
@ -214,7 +232,7 @@ func (egcd EthGasConsumeDecorator) AnteHandle(ctx sdk.Context, tx sdk.Tx, simula
 		return ctx, sdkerrors.Wrapf(sdkerrors.ErrInvalidRequest, "only 1 ethereum msg supported per tx, got %d", len(tx.GetMsgs()))
 	}

-	// reset the refund gas value for the current transaction
+	// reset the refund gas value in the keeper for the current transaction
 	egcd.evmKeeper.ResetRefundTransient(infCtx)

 	config, found := egcd.evmKeeper.GetChainConfig(infCtx)
@ -259,14 +277,14 @@ func (egcd EthGasConsumeDecorator) AnteHandle(ctx sdk.Context, tx sdk.Tx, simula
 			return ctx, sdkerrors.Wrapf(sdkerrors.ErrOutOfGas, "gas limit too low: %d (gas limit) < %d (intrinsic gas)", gasLimit, intrinsicGas)
 		}

-		// Cost calculates the fees paid to validators based on gas limit and price
-		cost := msgEthTx.Fee() // fee = gas limit * gas price
+		// calculate the fees paid to validators based on gas limit and price
+		feeAmt := msgEthTx.Fee() // fee = gas limit * gas price

 		evmDenom := egcd.evmKeeper.GetParams(infCtx).EvmDenom
-		feeAmt := sdk.Coins{sdk.NewCoin(evmDenom, sdk.NewIntFromBigInt(cost))}
+		fees := sdk.Coins{sdk.NewCoin(evmDenom, sdk.NewIntFromBigInt(feeAmt))}

 		// deduct the full gas cost from the user balance
-		if err := authante.DeductFees(egcd.bankKeeper, infCtx, signerAcc, feeAmt); err != nil {
+		if err := authante.DeductFees(egcd.bankKeeper, infCtx, signerAcc, fees); err != nil {
 			return ctx, err
 		}

@ -286,11 +304,125 @@ func (egcd EthGasConsumeDecorator) AnteHandle(ctx sdk.Context, tx sdk.Tx, simula
 	return next(ctx, tx, simulate)
 }

-// EthIncrementSenderSequenceDecorator increments the sequence of the signers. The
-// main difference with the SDK's IncrementSequenceDecorator is that the MsgEthereumTx
-// doesn't implement the SigVerifiableTx interface.
+// CanTransferDecorator checks if the sender is allowed to transfer funds according to the EVM block
+// context rules.
+type CanTransferDecorator struct {
+	evmKeeper EVMKeeper
+}
+
+// NewCanTransferDecorator creates a new CanTransferDecorator instance.
+func NewCanTransferDecorator(evmKeeper EVMKeeper) CanTransferDecorator {
+	return CanTransferDecorator{
+		evmKeeper: evmKeeper,
+	}
+}
+
+// AnteHandle creates an EVM from the message and calls the BlockContext CanTransfer function to
+// see if the address can execute the transaction.
+func (ctd CanTransferDecorator) AnteHandle(ctx sdk.Context, tx sdk.Tx, simulate bool, next sdk.AnteHandler) (sdk.Context, error) {
+	// get and set account must be called with an infinite gas meter in order to prevent
+	// additional gas from being deducted.
+	infCtx := ctx.WithGasMeter(sdk.NewInfiniteGasMeter())
+	ctd.evmKeeper.WithContext(infCtx)
+
+	config, found := ctd.evmKeeper.GetChainConfig(infCtx)
+	if !found {
+		return ctx, evmtypes.ErrChainConfigNotFound
+	}
+
+	ethCfg := config.EthereumConfig(ctd.evmKeeper.ChainID())
+
+	for _, msg := range tx.GetMsgs() {
+		msgEthTx, ok := msg.(*evmtypes.MsgEthereumTx)
+		if !ok {
+			return ctx, sdkerrors.Wrapf(sdkerrors.ErrUnknownRequest, "invalid transaction type: %T", msg)
+		}
+
+		coreMsg, err := msgEthTx.AsMessage()
+		if err != nil {
+			return ctx, err
+		}
+
+		evm := ctd.evmKeeper.NewEVM(coreMsg, ethCfg)
+
+		// check that caller has enough balance to cover asset transfer for **topmost** call
+		// NOTE: here the gas consumed is from the context with the infinite gas meter
+		if coreMsg.Value().Sign() > 0 && !evm.Context.CanTransfer(ctd.evmKeeper, coreMsg.From(), coreMsg.Value()) {
+			return ctx, sdkerrors.Wrapf(sdkerrors.ErrInsufficientFunds, "address %s", coreMsg.From().Hex())
+		}
+	}
+
+	ctd.evmKeeper.WithContext(ctx)
+
+	// set the original gas meter
+	return next(ctx, tx, simulate)
+}
+
+// AccessListDecorator prepare an access list for the sender if Yolov3/Berlin/EIPs 2929 and 2930 are
+// applicable at the current block number.
+type AccessListDecorator struct {
+	evmKeeper EVMKeeper
+}
+
+// NewAccessListDecorator creates a new AccessListDecorator.
+func NewAccessListDecorator(evmKeeper EVMKeeper) AccessListDecorator {
+	return AccessListDecorator{
+		evmKeeper: evmKeeper,
+	}
+}
+
+// AnteHandle handles the preparatory steps for executing an EVM state transition with
+// regards to both EIP-2929 and EIP-2930:
 //
-// CONTRACT: must be called after msg.VerifySig in order to cache the sender address.
+// 	- Add sender to access list (2929)
+// 	- Add destination to access list (2929)
+// 	- Add precompiles to access list (2929)
+// 	- Add the contents of the optional tx access list (2930)
+//
+// The AnteHandler will only prepare the access list if Yolov3/Berlin/EIPs 2929 and 2930 are applicable at the current number.
+func (ald AccessListDecorator) AnteHandle(ctx sdk.Context, tx sdk.Tx, simulate bool, next sdk.AnteHandler) (sdk.Context, error) {
+	// get and set account must be called with an infinite gas meter in order to prevent
+	// additional gas from being deducted.
+
+	infCtx := ctx.WithGasMeter(sdk.NewInfiniteGasMeter())
+
+	config, found := ald.evmKeeper.GetChainConfig(infCtx)
+	if !found {
+		return ctx, evmtypes.ErrChainConfigNotFound
+	}
+
+	ethCfg := config.EthereumConfig(ald.evmKeeper.ChainID())
+
+	rules := ethCfg.Rules(big.NewInt(ctx.BlockHeight()))
+
+	// we don't need to prepare the access list if the chain is not currently on the Berlin upgrade
+	if !rules.IsBerlin {
+		return next(ctx, tx, simulate)
+	}
+
+	// setup the keeper context before setting the access list
+	ald.evmKeeper.WithContext(infCtx)
+
+	for _, msg := range tx.GetMsgs() {
+		msgEthTx, ok := msg.(*evmtypes.MsgEthereumTx)
+		if !ok {
+			return ctx, sdkerrors.Wrapf(sdkerrors.ErrUnknownRequest, "invalid transaction type: %T", msg)
+		}
+
+		coreMsg, err := msgEthTx.AsMessage()
+		if err != nil {
+			return ctx, sdkerrors.Wrapf(sdkerrors.ErrInvalidType, "tx cannot be expressed as core.Message: %s", err.Error())
+		}
+
+		ald.evmKeeper.PrepareAccessList(coreMsg.From(), coreMsg.To(), vm.ActivePrecompiles(rules), coreMsg.AccessList())
+	}
+
+	// set the original gas meter
+	ald.evmKeeper.WithContext(ctx)
+	return next(ctx, tx, simulate)
+}
+
+// EthIncrementSenderSequenceDecorator increments the sequence of the signers.
 type EthIncrementSenderSequenceDecorator struct {
 	ak AccountKeeper
 }
@ -302,16 +434,32 @@ func NewEthIncrementSenderSequenceDecorator(ak AccountKeeper) EthIncrementSender
 	}
 }

-// AnteHandle handles incrementing the sequence of the sender.
+// AnteHandle handles incrementing the sequence of the signer (i.e sender). If the transaction is a
+// contract creation, the nonce will be incremented during the transaction execution and not within
+// this AnteHandler decorator.
 func (issd EthIncrementSenderSequenceDecorator) AnteHandle(ctx sdk.Context, tx sdk.Tx, simulate bool, next sdk.AnteHandler) (sdk.Context, error) {
 	// get and set account must be called with an infinite gas meter in order to prevent
 	// additional gas from being deducted.
 	infCtx := ctx.WithGasMeter(sdk.NewInfiniteGasMeter())

 	for _, msg := range tx.GetMsgs() {
+		msgEthTx, ok := msg.(*evmtypes.MsgEthereumTx)
+		if !ok {
+			return ctx, sdkerrors.Wrapf(sdkerrors.ErrUnknownRequest, "invalid transaction type: %T", msg)
+		}
+
+		// NOTE: on contract creation, the nonce is incremented within the EVM Create function during tx execution
+		// and not previous to the state transition ¯\_(ツ)_/¯
+		if msgEthTx.To() == nil {
+			// contract creation, don't increment sequence on AnteHandler but on tx execution
+			// continue to the next item
+			continue
+		}
+
 		// increment sequence of all signers
 		for _, addr := range msg.GetSigners() {
 			acc := issd.ak.GetAccount(infCtx, addr)
+
 			if acc == nil {
 				return ctx, sdkerrors.Wrapf(
 					sdkerrors.ErrUnknownAddress,
--- a/app/ante/eth_test.go
+++ b/app/ante/eth_test.go
@ -9,6 +9,7 @@ import (
 	"github.com/cosmos/ethermint/tests"
 	evmtypes "github.com/cosmos/ethermint/x/evm/types"

+	"github.com/ethereum/go-ethereum/common"
 	ethtypes "github.com/ethereum/go-ethereum/core/types"
 	"github.com/ethereum/go-ethereum/params"
 )
@ -306,13 +307,147 @@ func (suite AnteTestSuite) TestEthGasConsumeDecorator() {
 	}
 }

+func (suite AnteTestSuite) TestCanTransferDecorator() {
+	dec := ante.NewCanTransferDecorator(suite.app.EvmKeeper)
+
+	addr, _ := newTestAddrKey()
+
+	tx := evmtypes.NewMsgEthereumTxContract(suite.app.EvmKeeper.ChainID(), 1, big.NewInt(10), 1000, big.NewInt(1), nil, nil)
+	tx2 := evmtypes.NewMsgEthereumTxContract(suite.app.EvmKeeper.ChainID(), 1, big.NewInt(10), 1000, big.NewInt(1), nil, nil)
+
+	tx.From = addr.Hex()
+
+	testCases := []struct {
+		name     string
+		tx       sdk.Tx
+		malleate func()
+		expPass  bool
+	}{
+		{"invalid transaction type", &invalidTx{}, func() {}, false},
+		{"AsMessage failed", tx2, func() {}, false},
+		{
+			"evm CanTransfer failed",
+			tx,
+			func() {
+				acc := suite.app.AccountKeeper.NewAccountWithAddress(suite.ctx, addr.Bytes())
+				suite.app.AccountKeeper.SetAccount(suite.ctx, acc)
+			},
+			false,
+		},
+		{
+			"success",
+			tx,
+			func() {
+				acc := suite.app.AccountKeeper.NewAccountWithAddress(suite.ctx, addr.Bytes())
+				suite.app.AccountKeeper.SetAccount(suite.ctx, acc)
+
+				err := suite.app.BankKeeper.SetBalance(suite.ctx, addr.Bytes(), sdk.NewCoin(evmtypes.DefaultEVMDenom, sdk.NewInt(10000000000)))
+				suite.Require().NoError(err)
+			},
+			true,
+		},
+	}
+
+	for _, tc := range testCases {
+		suite.Run(tc.name, func() {
+
+			tc.malleate()
+
+			consumed := suite.ctx.GasMeter().GasConsumed()
+			ctx, err := dec.AnteHandle(suite.ctx.WithIsCheckTx(true), tc.tx, false, nextFn)
+			suite.Require().Equal(consumed, ctx.GasMeter().GasConsumed())
+
+			if tc.expPass {
+				suite.Require().NoError(err)
+			} else {
+				suite.Require().Error(err)
+			}
+		})
+	}
+}
+
+func (suite AnteTestSuite) TestAccessListDecorator() {
+	dec := ante.NewAccessListDecorator(suite.app.EvmKeeper)
+
+	addr, _ := newTestAddrKey()
+	al := &ethtypes.AccessList{
+		{Address: addr, StorageKeys: []common.Hash{{}}},
+	}
+
+	tx := evmtypes.NewMsgEthereumTxContract(suite.app.EvmKeeper.ChainID(), 1, big.NewInt(10), 1000, big.NewInt(1), nil, nil)
+	tx2 := evmtypes.NewMsgEthereumTxContract(suite.app.EvmKeeper.ChainID(), 1, big.NewInt(10), 1000, big.NewInt(1), nil, al)
+	tx3 := evmtypes.NewMsgEthereumTxContract(suite.app.EvmKeeper.ChainID(), 1, big.NewInt(10), 1000, big.NewInt(1), nil, nil)
+
+	tx.From = addr.Hex()
+	tx2.From = addr.Hex()
+
+	testCases := []struct {
+		name     string
+		tx       sdk.Tx
+		malleate func()
+		expPass  bool
+	}{
+		{"invalid transaction type", &invalidTx{}, func() {}, false},
+		{"AsMessage failed", tx3, func() {}, false},
+		{
+			"success - no access list",
+			tx,
+			func() {
+				acc := suite.app.AccountKeeper.NewAccountWithAddress(suite.ctx, addr.Bytes())
+				suite.app.AccountKeeper.SetAccount(suite.ctx, acc)
+
+				err := suite.app.BankKeeper.SetBalance(suite.ctx, addr.Bytes(), sdk.NewCoin(evmtypes.DefaultEVMDenom, sdk.NewInt(10000000000)))
+				suite.Require().NoError(err)
+			},
+			true,
+		},
+		{
+			"success - with access list",
+			tx2,
+			func() {
+				acc := suite.app.AccountKeeper.NewAccountWithAddress(suite.ctx, addr.Bytes())
+				suite.app.AccountKeeper.SetAccount(suite.ctx, acc)
+
+				err := suite.app.BankKeeper.SetBalance(suite.ctx, addr.Bytes(), sdk.NewCoin(evmtypes.DefaultEVMDenom, sdk.NewInt(10000000000)))
+				suite.Require().NoError(err)
+			},
+			true,
+		},
+	}
+
+	for _, tc := range testCases {
+		suite.Run(tc.name, func() {
+
+			tc.malleate()
+
+			consumed := suite.ctx.GasMeter().GasConsumed()
+			ctx, err := dec.AnteHandle(suite.ctx.WithIsCheckTx(true), tc.tx, false, nextFn)
+			suite.Require().Equal(consumed, ctx.GasMeter().GasConsumed())
+
+			if tc.expPass {
+				suite.Require().NoError(err)
+			} else {
+				suite.Require().Error(err)
+			}
+		})
+	}
+}
+
 func (suite AnteTestSuite) TestEthIncrementSenderSequenceDecorator() {
 	dec := ante.NewEthIncrementSenderSequenceDecorator(suite.app.AccountKeeper)
 	addr, privKey := newTestAddrKey()

-	signedTx := evmtypes.NewMsgEthereumTxContract(suite.app.EvmKeeper.ChainID(), 1, big.NewInt(10), 1000, big.NewInt(1), nil, nil)
-	signedTx.From = addr.Hex()
-	err := signedTx.Sign(suite.ethSigner, tests.NewSigner(privKey))
+	contract := evmtypes.NewMsgEthereumTxContract(suite.app.EvmKeeper.ChainID(), 0, big.NewInt(10), 1000, big.NewInt(1), nil, nil)
+	contract.From = addr.Hex()
+
+	to := tests.GenerateAddress()
+	tx := evmtypes.NewMsgEthereumTx(suite.app.EvmKeeper.ChainID(), 0, &to, big.NewInt(10), 1000, big.NewInt(1), nil, nil)
+	tx.From = addr.Hex()
+
+	err := contract.Sign(suite.ethSigner, tests.NewSigner(privKey))
+	suite.Require().NoError(err)
+
+	err = tx.Sign(suite.ethSigner, tests.NewSigner(privKey))
 	suite.Require().NoError(err)

 	testCases := []struct {
@ -322,27 +457,39 @@ func (suite AnteTestSuite) TestEthIncrementSenderSequenceDecorator() {
 		expPass  bool
 		expPanic bool
 	}{
+		{
+			"invalid transaction type",
+			&invalidTx{},
+			func() {},
+			false, false,
+		},
 		{
 			"no signers",
-			evmtypes.NewMsgEthereumTxContract(suite.app.EvmKeeper.ChainID(), 1, big.NewInt(10), 1000, big.NewInt(1), nil, nil),
+			evmtypes.NewMsgEthereumTx(suite.app.EvmKeeper.ChainID(), 1, &to, big.NewInt(10), 1000, big.NewInt(1), nil, nil),
 			func() {},
 			false, true,
 		},
 		{
 			"account not set to store",
-			signedTx,
+			tx,
 			func() {},
 			false, false,
 		},
 		{
-			"success",
-			signedTx,
+			"success - create contract",
+			contract,
 			func() {
 				acc := suite.app.AccountKeeper.NewAccountWithAddress(suite.ctx, addr.Bytes())
 				suite.app.AccountKeeper.SetAccount(suite.ctx, acc)
 			},
 			true, false,
 		},
+		{
+			"success - call",
+			tx,
+			func() {},
+			true, false,
+		},
 	}

 	for _, tc := range testCases {
@ -363,6 +510,13 @@ func (suite AnteTestSuite) TestEthIncrementSenderSequenceDecorator() {

 			if tc.expPass {
 				suite.Require().NoError(err)
+				msg := tc.tx.(*evmtypes.MsgEthereumTx)
+				nonce := suite.app.EvmKeeper.GetNonce(addr)
+				if msg.To() == nil {
+					suite.Require().Equal(msg.Data.Nonce, nonce)
+				} else {
+					suite.Require().Equal(msg.Data.Nonce+1, nonce)
+				}
 			} else {
 				suite.Require().Error(err)
 			}
--- a/ethereum/rpc/eth_api.go
+++ b/ethereum/rpc/eth_api.go
@ -3,7 +3,6 @@ package rpc
 import (
 	"bytes"
 	"context"
-	"encoding/json"
 	"fmt"
 	"math/big"
 	"strings"
@ -470,30 +469,16 @@ func (e *PublicEthAPI) Call(args rpctypes.CallArgs, blockNr rpctypes.BlockNumber
 		return []byte{}, err
 	}

-	if len(simRes.Result.Log) > 0 {
-		var logs []rpctypes.SDKTxLogs
-
-		if err := json.Unmarshal([]byte(simRes.Result.Log), &logs); err != nil {
-			e.logger.WithError(err).Errorln("failed to unmarshal simRes.Result.Log")
-		}
-
-		if len(logs) > 0 && logs[0].Log == rpctypes.LogRevertedFlag {
-			data, err := evmtypes.DecodeTxResponse(simRes.Result.Data)
-			if err != nil {
-				e.logger.WithError(err).Warningln("call result decoding failed")
-				return []byte{}, err
-			}
-
-			return []byte{}, rpctypes.ErrRevertedWith(data.Ret)
-		}
-	}
-
 	data, err := evmtypes.DecodeTxResponse(simRes.Result.Data)
 	if err != nil {
 		e.logger.WithError(err).Warningln("call result decoding failed")
 		return []byte{}, err
 	}

+	if data.Reverted {
+		return []byte{}, rpctypes.ErrRevertedWith(data.Ret)
+	}
+
 	return (hexutil.Bytes)(data.Ret), nil
 }

@ -620,25 +605,17 @@ func (e *PublicEthAPI) EstimateGas(args rpctypes.CallArgs) (hexutil.Uint64, erro
 		return 0, err
 	}

-	if len(simRes.Result.Log) > 0 {
-		var logs []rpctypes.SDKTxLogs
-		if err := json.Unmarshal([]byte(simRes.Result.Log), &logs); err != nil {
-			e.logger.WithError(err).Errorln("failed to unmarshal simRes.Result.Log")
-			return 0, err
-		}
-
-		if len(logs) > 0 && logs[0].Log == rpctypes.LogRevertedFlag {
-			data, err := evmtypes.DecodeTxResponse(simRes.Result.Data)
-			if err != nil {
-				e.logger.WithError(err).Warningln("call result decoding failed")
-				return 0, err
-			}
-
-			return 0, rpctypes.ErrRevertedWith(data.Ret)
-		}
+	data, err := evmtypes.DecodeTxResponse(simRes.Result.Data)
+	if err != nil {
+		e.logger.WithError(err).Warningln("call result decoding failed")
+		return 0, err
 	}

-	// TODO: change 1000 buffer for more accurate buffer (eg: SDK's gasAdjusted)
+	if data.Reverted {
+		return 0, rpctypes.ErrRevertedWith(data.Ret)
+	}
+
+	// TODO: Add Gas Info from state transition to MsgEthereumTxResponse fields and return that instead
 	estimatedGas := simRes.GasInfo.GasUsed
 	gas := estimatedGas + 200000

--- a/types/errors.go
+++ b/types/errors.go
@ -18,9 +18,6 @@ var (
 	// ErrInvalidChainID returns an error resulting from an invalid chain ID.
 	ErrInvalidChainID = sdkerrors.Register(RootCodespace, 3, "invalid chain ID")

-	// ErrVMExecution returns an error resulting from an error in EVM execution.
-	ErrVMExecution = sdkerrors.Register(RootCodespace, 4, "error while executing evm transaction")
-
 	// ErrMarshalBigInt returns an error resulting from marshaling a big.Int to a string.
 	ErrMarshalBigInt = sdkerrors.Register(RootCodespace, 5, "cannot marshal big.Int to string")

--- a/x/evm/keeper/state_transition.go
+++ b/x/evm/keeper/state_transition.go
@ -0,0 +1,264 @@
+package keeper
+
+import (
+	"errors"
+	"fmt"
+	"math/big"
+	"os"
+	"time"
+
+	"github.com/cosmos/cosmos-sdk/telemetry"
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	sdkerrors "github.com/cosmos/cosmos-sdk/types/errors"
+	authtypes "github.com/cosmos/cosmos-sdk/x/auth/types"
+
+	"github.com/cosmos/ethermint/x/evm/types"
+
+	"github.com/ethereum/go-ethereum/common"
+	"github.com/ethereum/go-ethereum/core"
+	"github.com/ethereum/go-ethereum/core/vm"
+	"github.com/ethereum/go-ethereum/params"
+)
+
+// NewEVM generates an ethereum VM from the provided Message fields and the ChainConfig.
+func (k *Keeper) NewEVM(msg core.Message, config *params.ChainConfig) *vm.EVM {
+	blockCtx := vm.BlockContext{
+		CanTransfer: core.CanTransfer,
+		Transfer:    core.Transfer,
+		GetHash:     k.GetHashFn(),
+		Coinbase:    common.Address{}, // there's no beneficiary since we're not mining
+		GasLimit:    k.ctx.BlockGasMeter().Limit(),
+		BlockNumber: big.NewInt(k.ctx.BlockHeight()),
+		Time:        big.NewInt(k.ctx.BlockHeader().Time.Unix()),
+		Difficulty:  big.NewInt(0), // unused. Only required in PoW context
+	}
+
+	txCtx := core.NewEVMTxContext(msg)
+	vmConfig := k.VMConfig()
+
+	return vm.NewEVM(blockCtx, txCtx, k, config, vmConfig)
+}
+
+// VMConfig creates an EVM configuration from the module parameters and the debug setting.
+// The config generated uses the default JumpTable from the EVM.
+func (k Keeper) VMConfig() vm.Config {
+	params := k.GetParams(k.ctx)
+
+	return vm.Config{
+		Debug:       k.debug,
+		Tracer:      vm.NewJSONLogger(&vm.LogConfig{Debug: k.debug}, os.Stderr), // TODO: consider using the Struct Logger too
+		NoRecursion: false,                                                      // TODO: consider disabling recursion though params
+		ExtraEips:   params.EIPs(),
+	}
+}
+
+// GetHashFn implements vm.GetHashFunc for Ethermint. It handles 3 cases:
+//  1. The requested height matches the current height from context (and thus same epoch number)
+//  2. The requested height is from an previous height from the same chain epoch
+//  3. The requested height is from a height greater than the latest one
+func (k Keeper) GetHashFn() vm.GetHashFunc {
+	return func(height uint64) common.Hash {
+		switch {
+		case k.ctx.BlockHeight() == int64(height):
+			// Case 1: The requested height matches the one from the context so we can retrieve the header
+			// hash directly from the context.
+			// TODO: deprecate field from the keeper on next SDK release
+			return k.headerHash
+
+		case k.ctx.BlockHeight() > int64(height):
+			// Case 2: if the chain is not the current height we need to retrieve the hash from the store for the
+			// current chain epoch. This only applies if the current height is greater than the requested height.
+			return k.GetHeightHash(k.ctx, height)
+
+		default:
+			// Case 3: heights greater than the current one returns an empty hash.
+			return common.Hash{}
+		}
+	}
+}
+
+// TransitionDb runs and attempts to perform a state transition with the given transaction (i.e Message), that will
+// only be persisted to the underlying KVStore if the transaction does not error.
+//
+// Gas tracking
+//
+// Ethereum consumes gas according to the EVM opcodes instead of general reads and writes to store. Because of this, the
+// state transition needs to ignore the SDK gas consumption mechanism defined by the GasKVStore and instead consume the
+// amount of gas used by the VM execution. The amount of gas used is tracked by the EVM and returned in the execution
+// result.
+//
+// Prior to the execution, the starting tx gas meter is saved and replaced with an infinite gas meter in a new context
+// in order to ignore the SDK gas consumption config values (read, write, has, delete).
+// After the execution, the gas used from the message execution will be added to the starting gas consumed, taking into
+// consideration the amount of gas returned. Finally, the context is updated with the EVM gas consumed value prior to
+// returning.
+//
+// For relevant discussion see: https://github.com/cosmos/cosmos-sdk/discussions/9072
+func (k *Keeper) TransitionDb(msg core.Message) (*types.ExecutionResult, error) {
+	defer telemetry.ModuleMeasureSince(types.ModuleName, time.Now(), types.MetricKeyTransitionDB)
+
+	cfg, found := k.GetChainConfig(k.ctx)
+	if !found {
+		return nil, types.ErrChainConfigNotFound
+	}
+
+	evm := k.NewEVM(msg, cfg.EthereumConfig(k.eip155ChainID))
+
+	// create an ethereum StateTransition instance and run TransitionDb
+	result, err := k.ApplyMessage(evm, msg)
+	if err != nil {
+		return nil, err
+	}
+
+	return result, nil
+}
+
+// Gas consumption notes (write doc from this)
+
+// gas = remaining gas = limit - consumed
+
+// Gas consumption in ethereum:
+// 0. Buy gas -> deduct gasLimit * gasPrice from user account
+// 		0.1 leftover gas = gas limit
+// 1. consume intrinsic gas
+//   1.1 leftover gas = leftover gas - intrinsic gas
+// 2. Exec vm functions by passing the gas (i.e remaining gas)
+//   2.1 final leftover gas returned after spending gas from the opcodes jump tables
+// 3. Refund amount =  max(gasConsumed / 2, gas refund), where gas refund is a local variable
+
+// TODO: (@fedekunze) currently we consume the entire gas limit in the ante handler, so if a transaction fails
+// the amount spent will be grater than the gas spent in an Ethereum tx (i.e here the leftover gas won't be refunded).
+
+func (k *Keeper) ApplyMessage(evm *vm.EVM, msg core.Message) (*types.ExecutionResult, error) {
+	var (
+		ret          []byte // return bytes from evm execution
+		contract     common.Address
+		contractAddr string
+		vmErr, err   error // vm errors do not effect consensus and are therefore not assigned to err
+	)
+
+	sender := vm.AccountRef(msg.From())
+	contractCreation := msg.To() == nil
+
+	// transaction gas meter (tracks limit and usage)
+	gasConsumed := k.ctx.GasMeter().GasConsumed()
+	leftoverGas := k.ctx.GasMeter().Limit() - k.ctx.GasMeter().GasConsumedToLimit()
+
+	// NOTE: Since CRUD operations on the SDK store consume gasm we need to set up an infinite gas meter so that we only consume
+	// the gas used by the Ethereum message execution.
+	// Not setting the infinite gas meter here would mean that we are incurring in additional gas costs
+	k.WithContext(k.ctx.WithGasMeter(sdk.NewInfiniteGasMeter()))
+
+	// NOTE: gas limit is the GasLimit defied in the message minus the Intrinsic Gas that has already been
+	// consumed on the AnteHandler.
+
+	// ensure gas is consistent during CheckTx
+	if k.ctx.IsCheckTx() {
+		if err := k.checkGasConsumption(msg, gasConsumed, contractCreation); err != nil {
+			return nil, err
+		}
+	}
+
+	if contractCreation {
+		ret, contract, leftoverGas, vmErr = evm.Create(sender, msg.Data(), leftoverGas, msg.Value())
+		contractAddr = contract.Hex()
+	} else {
+		ret, leftoverGas, vmErr = evm.Call(sender, *msg.To(), msg.Data(), leftoverGas, msg.Value())
+	}
+
+	// refund gas prior to handling the vm error in order to set the updated gas meter
+	gasConsumed, leftoverGas, err = k.refundGas(msg, leftoverGas)
+	if err != nil {
+		return nil, err
+	}
+
+	if vmErr != nil {
+		if errors.Is(vmErr, vm.ErrExecutionReverted) {
+			// unpack the return data bytes from the err if the execution has been reverted on the VM
+			return nil, types.NewExecErrorWithReson(ret)
+		}
+
+		// wrap the VM error
+		return nil, sdkerrors.Wrap(types.ErrVMExecution, vmErr.Error())
+	}
+
+	return &types.ExecutionResult{
+		Response: &types.MsgEthereumTxResponse{
+			ContractAddress: contractAddr,
+			Ret:             ret,
+		},
+		GasInfo: types.GasInfo{
+			GasLimit:    k.ctx.GasMeter().Limit(),
+			GasConsumed: gasConsumed,
+			GasRefunded: leftoverGas,
+		},
+	}, nil
+}
+
+// checkGasConsumption verifies that the amount of gas consumed so far matches the intrinsic gas value.
+func (k *Keeper) checkGasConsumption(msg core.Message, gasConsumed uint64, isContractCreation bool) error {
+	cfg, _ := k.GetChainConfig(k.ctx)
+	ethCfg := cfg.EthereumConfig(k.eip155ChainID)
+
+	height := big.NewInt(k.ctx.BlockHeight())
+	homestead := ethCfg.IsHomestead(height)
+	istanbul := ethCfg.IsIstanbul(height)
+
+	intrinsicGas, err := core.IntrinsicGas(msg.Data(), msg.AccessList(), isContractCreation, homestead, istanbul)
+	if err != nil {
+		// should have already been checked on Ante Handler
+		return err
+	}
+
+	if intrinsicGas != gasConsumed {
+		return fmt.Errorf("inconsistent gas. Expected gas consumption to be %d (intrinsic gas only), got %d", intrinsicGas, gasConsumed)
+	}
+
+	return nil
+}
+
+// refundGas transfers the leftover gas to the sender of the message, caped to half of the total gas
+// consumed in the transaction. Additionally, the function sets the total gas consumed to the value
+// returned by the EVM execution, thus ignoring the previous intrinsic gas inconsumed during in the
+// AnteHandler.
+func (k *Keeper) refundGas(msg core.Message, leftoverGas uint64) (consumed, leftover uint64, err error) {
+	gasConsumed := msg.Gas() - leftoverGas
+
+	// Apply refund counter, capped to half of the used gas.
+	refund := gasConsumed / 2
+	if refund > k.GetRefund() {
+		refund = k.GetRefund()
+	}
+
+	leftoverGas += refund
+	gasConsumed = msg.Gas() - leftoverGas
+
+	// Return EVM tokens for remaining gas, exchanged at the original rate.
+	remaining := new(big.Int).Mul(new(big.Int).SetUint64(leftoverGas), msg.GasPrice())
+
+	switch remaining.Sign() {
+	case -1:
+		// negative refund errors
+		return 0, 0, fmt.Errorf("refunded amount value cannot be negative %d", remaining.Int64())
+	case 1:
+		// positive amount refund
+		params := k.GetParams(k.ctx)
+		refundedCoins := sdk.Coins{sdk.NewCoin(params.EvmDenom, sdk.NewIntFromBigInt(remaining))}
+
+		// refund to sender from the fee collector module account, which is the escrow account in charge of collecting tx fees
+		if err := k.bankKeeper.SendCoinsFromModuleToAccount(k.ctx, authtypes.FeeCollectorName, msg.From().Bytes(), refundedCoins); err != nil {
+			return 0, 0, sdkerrors.Wrapf(sdkerrors.ErrInsufficientFunds, "fee collector account failed to refund fees: %s", err.Error())
+		}
+	default:
+		// no refund, consume gas and update the tx gas meter
+	}
+
+	// set the gas consumed into the context with the new gas meter. This gas meter will have the
+	// original gas limit defined in the msg and will consume the gas now that the amount has been
+	// refunded
+	gasMeter := sdk.NewGasMeter(msg.Gas())
+	gasMeter.ConsumeGas(gasConsumed, "update gas consumption after refund")
+	k.WithContext(k.ctx.WithGasMeter(gasMeter))
+
+	return gasConsumed, leftoverGas, nil
+}