TABLE OF CONTENTS
- How Virtual Accounts balance works
- On-chain asset balance Management
Virtual Accounts are a custodial and off-chain abstraction of the blockchain, where assets are virtually traded across Virtual Accounts without blockchain fees.
How Virtual Accounts balance works
At a high level, the Virtual Account balance is the combination of two separate asset balance sources:
On-chain: Blockchain deposit addresses
Off-chain: Virtual Account trading
Depending on Virtual Account trading activity, a blockchain deposit address attached to a Virtual Account may hold a lower or higher balance than what’s available on its Virtual Account.
On-chain asset balance Management
Handing transfers from Virtual Accounts to blockchain addresses external to your Exchange or Application, successfully and pain-free, requires thoughtful On-chain balance management.
Trading across Virtual Accounts means that your On-chain balance increasingly spreads across the blockchain deposit addresses of your Exchange or Application. If left unchecked, your On-chain balance will become increasingly hard to track.
Virtual Accounts asset management can be handled in two ways:
Spread asset management
Centralized asset management
Spread asset Management - NOT recommended
You keep and maintain a complex database of all your Virtual Account balances and On-chain assets spread across all your blockchain deposit addresses.
At the time to handle transfers from Virtual Accounts to the blockchain, depending on the On-chain balance available within each individual deposit address of a specific Virtual Account, you may need to find additional deposit addresses within your database across your customers to amount enough On-chain balance to transfer out.
This method can require several blockchain transfers with different endpoint types.
Spread asset Management occasionally offers a low cost in fees. However, it requires from you a complex database and back-end infrastructure to handle On-chain assets and withdrawals. Find the related support article.
Centralized asset Management - Recommended
You keep a relatively simple database of all your Virtual Accounts and you track On-chain deposits.
After an incoming On-chain deposit from the blockchain to a deposit address of a Virtual Account, you transfer those On-chain assets to your Master Exchange address. Virtual Account withdrawals are handled via your Master Exchange Address.
Centralized asset Management has a higher cost in terms of fees. However, it requires from you a relatively easy database and back-end infrastructure to handle On-chain assets and withdrawals. Find the related support article.
Was this article helpful?
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
We appreciate your effort and will try to fix the article