Why Security Audits For Smart Contracts Are Important

Why Security Audits For Smart Contracts Are Important


The importance of a smart contract audit report cannot be denied by anyone who is in the DeFi ecosystem and working on blockchain projects. No smart contract can be deployed without getting authenticated by a security audit report.

A smart contract audit report is mandatory for crossing the bridge and deploying the smart contract on the blockchain network for peer-to-peer transactions. A smart contract is a technique of digitally encoding and running the terms of a contract on a blockchain. Unless it is designed and deployed with care, smart contracts are vulnerable to cyber-attacks. It is generally believed that smart contracts cannot be hacked because they are immutable. Once a transaction has been authenticated and deployed on the blockchain, However, various hacking episodes in the crypto industry have so far resulted in losses of over $ 1 billion. No one can authoritatively define what constitutes a "safe" smart contract, nor is there a set of hard and fast rules that can dictate what a safe smart contract should look like.

This blog post will help understand why security audits are essential, how they work, and how they can help protect your smart contract from being attacked.

What Is A Smart Contract Security Audit?

The smart contract audit is a term used to refer to examining a smart contract code to see if it is secure and evaluate its functionality. The output of a security audit is a list of security vulnerabilities that need to be addressed and recommendations for how to address them. The diagram below illustrates an audit flow:


Why Security Audits For Smart Contracts Are Important

Blockchains and cryptocurrencies are tempting targets for hackers because smart contracts may have locked in them millions of dollars. In recent times we hear of million-dollar breaches, server compromise, code exploitation, private key theft, etc from NFTs or Cryptocurrencies. These attacks are likely to persist, and their frequency may increase, posing a serious threat to this new technology. That is why smart contract security audits are the most pressing.


Source: https://www.statista.com/chart/12707/largest-known-crypto-currency-thefts/

Smart Contract Audit Approaches

When it comes to the smart contract, developers and other stakeholders can take a variety of approaches to ensure their code meets the security requirements of a smart contract. The most common techniques are manual and automated testing.

In Manual Testing, a team of auditors examines each line of code for any issues related to the development of code. This testing can also assist in identifying some common vulnerabilities that are often overlooked. It is done by verifying a standard list of vulnerabilities or conducting a free exploratory check based on the developer's experience. This method is accurate and complete because it detects hidden flaws such as contract logic or design weaknesses rather than just defects in code.However, it is subject to human error.

Automated security analysis is a sophisticated way that helps faster discovery of vulnerabilities. Auditors or developers use a range of vulnerability detection tools as a part of automated smart contract audits. This tool assists in determining where a vulnerability exists.

Where Can I Get A Smart Contract Audit?

As the world of smart contracts continues to evolve, developers and auditors are looking for new ways to assess the security of their code. Several smart contract auditing services are available that customize their auditing services according to their client needs. The most common approach is to use automated tools to analyze the code for vulnerabilities and bugs.

BlockChainSentry's vulnerability management tools can help you find vulnerabilities in your code and assist you with a rule-based audit.

BlockChainSentry VMS - Security Audits

BlockChainSentry is a blockchain security firm providing products and solutions for smart contract security. We also offer rule-based auditing services for smart contracts. Our main goal is to be a prominent member of a global network of organizations that detect and fix blockchain flaws while also assisting the industry in combating cybercrime.

Our Vulnerability Management Tool evaluates the security of your smart contract and code in depth. It then determines vulnerabilities and proposes solutions. You can request a free demo of the products at blockchainsentry.com