> For the complete documentation index, see [llms.txt](https://docs.vdex.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.vdex.trade/protocol/whitepaper/virtual-node.md). # Virtual Node #### Abstract Virtual Nodes validate and store balance states within the ZKSC. First, a participant’s Virtual Node produces an unsigned balance state reflecting user actions. Then, the counterparty’s Virtual Node signs valid updates and returns them to the participant. The participant’s Virtual Node then issues the final signature, completing the state and disseminating it back to the counterparty. Participant Virtual Nodes are programmed to assume counterparty liveness. If the participant's balance state is not immediately returned, the Virtual Node will execute its state on the settlement layer, ensuring network service in all scenarios. If the counterparty does not receive the finalized state from the participant, it will execute the partially signed state on the settlement layer. If a Virtual Node observes that a stale state has been submitted to the settlement layer, it will automatically override the ledger with its most recent finalized state. #### Features * Self-Verification --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.vdex.trade/protocol/whitepaper/virtual-node.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.