🔐Risks & Risk Mitigation

There are two major risks that the Nexus Network team foresees in the product adoption -

  • Security concerns - The trust assumptions added by Nexus Network are minimal because of its non-custodial design. Still, there will be concerns about the new smart contracts deployed to manage the architecture

  • Social consensus - Nexus Network is ushering in a new approach to utilize the ETH locked in rollup bridges which will create its own set of backers and questioners. A social consensus among the rollups, as well as the community, will be needed to ensure that the idea can get widespread adoption

Nexus Network team is working continuously to allay these concerns -

  • Security concerns - The Nexus Network team takes security very carefully. It has built a minimal solution to reduce the security surface area -

    • The additions to the rollup bridge are minimal. They only add features for depositing to validators and claiming staking returns

    • The flow of funds is non-custodial

    • The Nexus contracts that oversee the system are being continuously scrutinized and will undergo a period of testing on testnet and at least two tier-1 audits before going on mainnet

    • In the off chance that the Nexus contracts get compromised, they can not access any funds, making the solution even more secure

  • Social consensus - Social consensus is a long-term process of gaining the trust of the ecosystem participants. The Nexus Network team is a team of passionate Ethereum builders. We understand that the product will gain more trust as it spends time in the market. We are talking to rollups consistently and incorporating their feedback. We will follow all the security standards and build a strong product that can stand the test of time and scrutiny

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