KVM operates on the principle of full virtualization, which means that each virtual machine (VM) is treated as a separate entity with direct access to the underlying hardware. This is achieved through the use of a hypervisor, which is a type of virtualization software that abstracts the hardware layer and manages the resources for the VMs. The hypervisor is integrated into the host operating system, enabling it to manage the physical resources and allocate them to each virtual machine as needed.
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