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How to Safely Utilize Layer2 Scaling Solutions | Bankless Africa Weekly Newsletter
This is the Bankless Africa Newsletter, your one-stop plug for well-curated and up-to-date crypto and web3 news around Africa.
From the last newsletter in April! It feels like just yesterday when we were saying "Happy new month.”
Layer2 scaling solutions have become crucial for faster and more affordable transactions. However, using them safely is essential to avoid losing funds or compromising security. We have explored the world of Layer2, in this issue, we'll cover how to use Layer2 scaling solutions safely and provide practical tips to help you do so. We will also discuss:
Roqqu receives Regulatory Approval to Operate in South Africa
📻 Podcast of the Week
The Bankless Africa Podcast of the Week: Celo Africa DAO goes live | Coindesk Indices partners with Luno | 3% of blockchain Developers in Africa | Gold x Crime in South Africa and more!
Sats & Gwei bring you the latest crypto news around Africa: Celo Africa is live! CoinDesk Indices teams up with Luno for "Luno Large Cap Bundle" in South Africa. Research has shown that 3% of blockchain developers are in Africa. Gold Mafia in Southern Africa uses gold for crime.
How to Safely Utilize Layer2 Scaling Solutions
As more users adopt Layer2 scaling solutions, it becomes increasingly important to ensure safety and security. Several Layer2 scaling solutions have successfully scaled up while keeping safety and security in mind. A good example is Polygon, which has become one of the most popular Layer2 scaling solutions due to its speed, efficiency, and safety features. Polygon uses a combination of security measures, including smart contracts and regular updates, to ensure the safety and security of its users.
Potential Risks of Using Layer 2 Scaling Solutions
When scaling up, there are certain risks associated with using Layer2 scaling solutions. Here are a few:
Hacking: Hackers can exploit vulnerabilities in your Layer2 scaling solution to gain access to your cryptocurrencies.
Scams: Scammers can pose as a legitimate entity to trick you into sending them your funds or personal information.
Phishing attacks: Phishing attacks involve tricking users into providing their logins or other sensitive information.
Smart contract vulnerabilities: Smart contracts can be vulnerable to attacks if not properly secured.
Some Layer2 scaling solutions like Arbitrum are still centralized and are operated by Offchain Labs. In the course of transactions, if there is no validator, then it is vulnerable to malicious attacks.
Safety Tips for Using Layer2 Scaling Solutions
Here are some important safety tips for using Layer2 scaling solutions:
Use a reputable Layer2 scaling solution: It is essential to do your research and choose a reputable Layer2 scaling solution that has a proven track record of safety and security.
Keep your private keys secure: Your private keys are essential for accessing your funds, and therefore, they should be kept secure at all times. Use a hardware wallet or a secure digital storage solution to keep your private keys safe.
Enable two-factor authentication: Two-factor authentication adds an extra layer of security to your account by requiring a second form of verification before accessing your account.
Regularly update your software: Updating your Layer2 scaling solution and other software regularly ensures you have the latest security patches and features.
Use strong passwords: Use unique and strong passwords for all your accounts and most importantly, avoid using the same password across multiple accounts.
In addition to the safety tips listed above, here are some best practices for securing your Layer2 scaling solution:
Test your smart contracts thoroughly: Smart contracts are an essential component of Layer2 scaling solutions. Smart contracts are self-executing contracts that are coded or stored in the blockchain. They enable users to conduct transactions quickly and securely, without the need for intermediaries. However, smart contracts can also be vulnerable to attacks if not properly secured. Therefore, they should be tested thoroughly to ensure that they are secure and free of vulnerabilities.
Conduct security audits: Conducting security audits can help identify potential vulnerabilities in your Layer2 scaling solution and enable you to take the necessary steps to address them.
Use a multisig wallet: A multisig wallet requires multiple signatures to authorize transactions, making it more difficult for hackers to gain access to your funds.
Use a VPN: Using a VPN can help protect your personal information by encrypting your internet connection and hiding your IP address.
By following these safety tips and best practices, you can use Layer2 scaling solutions without worrying about the risk of hacking, scams, or other security threats.
Bonus: Roqqu receives Regulatory Approval to Operate in South Africa
Good news for crypto enthusiasts in South Africa! Roqqu, a well-known Nigerian crypto exchange, has been given the green light to operate South Africa. This allows users to conveniently buy and sell cryptocurrencies and withdraw their funds using the South African rand.
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Disclaimer: This post does not contain financial advice, only educational information. By reading this article, you agree and affirm the above, as well as that you are not being solicited to make a financial decision, and you in no way are receiving any fiduciary projection, promise, or tacit inference of your ability to achieve financial gains.