Introduction
This documentation provides a technical overview of VSC (Virtual Smart Chain), a decentralized protocol for cross-chain asset custody and swaps, settlement, and smart contract execution. VSC connects EVM and non-EVM chains through validator-managed vaults and a unified stablecoin-based routing system using HBD. VSC enables feeless transactions, native asset support, and composable cross-chain logic in a single trust-minimized environment.
Built as a high-performance, feeless settlement layer, VSC leverages WebAssembly smart contracts, zero-knowledge proofs, validator-managed vaults and a collateral-backed native asset model that reduces liquidity fragmentation across ecosystems.
All swaps are routed through a single base asset, a stablecoin, HBD (Hive Backed Dollars). Using HBD exposes LPs only to 1-sided volatility which makes liquidity provision on VSC more predictable and efficient for both institutional and retail participants.
Unlike other cross-chain protocols limited to basic swap mechanics, VSC supports smart contract execution, allowing developers to build composable, cross-chain, decentralized applications within the protocol itself.
Core Protocol Features:
Section titled “Core Protocol Features:”- Native Multi-Chain Asset Support
Assets from supported blockchains (including Bitcoin, Solana, Ethereum, and others) are deposited directly into on-chain vaults secured by VSC validators. These validators are required to stake Hive as economic collateral, ensuring security and accountability.
- Smart Contracts via WebAssembly (WASM)
Developers can build powerful on-chain logic using WASM-based contracts, with native access to assets from multiple chains.
- Zero-Knowledge Proof Architecture
ZKPs are used to validate external chain interactions and maintain verifiability across systems, without compromising speed or user privacy.
- Universal Wallet Interoperability
Users can interact with the protocol using wallets from any supported blockchain, removing the need to manage multiple accounts or formats.
- Human-Centric Identity Layer
Through native Hive integration, users benefit from readable usernames, account abstraction, social login, enabling Web2 simplicity without sacrificing decentralization.
VSC’s Next-Gen Innovations
Section titled “VSC’s Next-Gen Innovations”VSC introduces several novel architectural components to address common limitations in existing cross-chain protocols in order to deliver a unified, scalable, and developer-friendly ecosystem. These innovations address long-standing limitations in interoperability, user experience, and liquidity fragmentation. These components aim to simplify development and improve the user experience in multi-chain environments.
- Native Asset Mapping
VSC enables assets from different blockchains (e.g., BTC, SOL, Hive, ETH) to be securely locked on their native chains and mapped to VSC-connected addresses. For example: this allows Ethereum wallet addresses to hold native Bitcoin (BTC), Solana wallet addresses to hold native Ethereum (ETH), and vice versa, all while leveraging VSC’s decentralized validator network for seamless cross-chain interoperability.
- Feeless In-Protocol Transactions
VSC eliminates gas fees for users by utilizing Hive’s resource credit model. These credits regenerate over time and are consumed when a user performs on-chain actions like transferring tokens, interacting with smart contracts, or signing transactions.This system enables truly feeless interactions, making VSC uniquely positioned to offer a gasless experience, ideal for onboarding mainstream users and scaling usage without friction.
- Stablecoin (HBD) as the Base Asset in All Pairs
Liquidity pools on VSC pair every asset against HBD, an algorithmic stablecoin with a decade-long track record of uptime and stability. This standardizes routing paths and simplifies liquidity provisioning across assets and chains while preventing volatility shocks and requiring exposure to a secondary volatile asset.