The "virtual" part implies the L2 aspect of the overall system, and partially just naming only.. The smart contracts operate a bit differently than other solutions, instead of smart contracts operating across 100% of nodes, only a handful of nodes execute each smart contract. This allows the network to scale horizontally and maintain long term scalability. Each smart contract is just JS code that is designed under the restrictions of the smart contract VM (i.e max execution time, deterministic, no 3rd party libs, etc). The goal is to provide users with a highly advanced smart contract interface that both tackles all the needed offchain functionality and onchain functionality as well. While most of the data will be offchain, it will likely end up having the most support for onchain operations out of everything built so far.