Virtual Wallets

This module offers customers the possibility to generate Virtual Wallets on various blockchain networks to send, receive and record balances and movements. It simplifies the management of digital assets and allows to establish automated rules for user flows. All the assets will be stored on a Holding Wallet that will be created when the first Virtual Wallet is created. There is only one Holding Wallet for each blockchain. When a deposit is made to one of the addresses it will accredit it instantly. These Virtual Wallets will have a virtual balance, which represents the amount of tokens that belongs to those addresses. > **Note:** Deposits made to virtual wallets must be at least 1 USD to be processed.

Virtual Wallets:

Virtual wallets are interfaces that allow users to interact with the blockchain in a more accessible and user-friendly way without the need to directly manage the private keys associated with their digital assets. This reduces the technical complexity and risks associated with the loss or mismanagement of these keys, making blockchain technology more accessible to the average user.

Virtual Wallets also have the capability to be deactivated, ensuring that they do not occupy space within the pool of available virtual wallets. This feature allows for better management and allocation of resources, ensuring that only active and necessary wallets consume system resources.

Holding Wallet:

At the core of the Virtual Wallet infrastructure is the Holding Wallet. This is a unique wallet designated for each blockchain, where all users’ digital assets are stored. The Holding Wallet is responsible for managing the actual funds and executing transactions on behalf of the Virtual Wallets. This centralized approach allows for greater security and efficiency in the management of digital assets.

Virtual Balance:

Virtual Wallets display to users a virtual balance that reflects the amount of tokens allocated to their specific addresses. However, these real assets are centrally stored in the Holding Wallet. This virtual representation allows for more agile and secure management, eliminating the need for users to interact directly with the blockchain for each operation.

Instant Transactions:

One of the key benefits of Virtual Wallets is the ability to perform instant transactions from the user’s perspective. When a deposit is made to a Virtual Wallet address, the balance is updated immediately in the user interface, providing a seamless and delay-free experience. Meanwhile, the underlying transaction on the blockchain is processed in the background and may take a bit longer to confirm, depending on network congestion and conditions.

User Flow Automation:

Virtual Wallets also offer advanced automation capabilities, allowing users to set customized rules for managing user flows. This can include setting up automatic transfers, alerts, and notifications, among other features that significantly enhance the user experience. Automation reduces the need for manual intervention, making digital asset management more efficient and secure.

Financial Management:

The Holding Wallet plays a critical role in financial management. It allows for partial withdrawal of the balance, keeping a reserve ratio against the Virtual Wallets, which facilitates the handling of user funds to generate additional benefits. It is essential to maintain a guarantee fund within the Holding Wallet to ensure that customer withdrawals are always covered. Failing to do so would result in insufficient funds errors when attempting withdrawals.

Moreover, if assets are transferred from the Holding Wallet to a Virtual Wallet, the balance of the latter will be updated even if the Holding Wallet does not have sufficient funds to cover that amount. This mechanism can create leverage by effectively using capital beyond the immediate balance of the Holding Wallet.