A smart contract audit is a comprehensive review of a contract’s codebase to identify security flaws or performance issues. It’s a crucial process that every contract must undergo before public deployment. This article will delve into smart contract audits and their vitality in the blockchain sector.
What is a smart contract audit?
It is an extensive evaluation of a contract’s codebase and underlying logic to find potential security threats or performance issues. It involves at least two experts using automated and manual techniques to study the code and its functionality.
Blockchain technology allows people to transact seamlessly without centralized parties. Transactions are transparent and irreversible, which, unfortunately, makes blockchain apps a big target for hackers. Any little error could be exploited to steal user funds, and it’s necessary not to leave room for such errors. That’s why professionals must audit your blockchain project before you release it to the public.
Why are smart contract audits important?
They are important for the following reasons:
Improved security
The primary aim of an audit is to identify security risks with your decentralized app and ensure these risks are rectified before the app’s launch. Auditors ensure that you don’t release bug-ridden apps, which risk users losing their funds. They ensure your app complies with your target market’s industry security standards and privacy regulations.
Enhanced performance
Auditors examine your app to identify potential opportunities to improve its performance. For example, they can find ways to tweak the code for faster transaction speed. They can find ways to lessen transaction costs and make users save more money.
Audits help ensure your app delivers the required functionality and keeps users happy.
Compliance
Blockchain apps are strictly regulated in many jurisdictions, and complying with such regulations is necessary. Experts audit your app to see if it complies with regulations in your jurisdictions and raise alarm if not. Auditors tell you about any compliance issues they identify and how you can resolve them. Compliance helps you operate in the long term without legal problems.
Credibility
An audit improves your app’s credibility with users, partners, investors, and other stakeholders. It proves that your app underwent a rigorous review and was deemed fit for public deployment. Because of potential security risks, almost no user will sign up for an unaudited blockchain app.
Exchanges and other platforms won’t be willing to integrate with an unaudited app, and investors will also shy away from such apps.
In other words, auditing your app is necessary to build brand value and attract users.
Who audits blockchain apps?
You can hire a professional smart contract audit service to do the job meticulously. Professional auditing firms are staffed with experts who look into your code to identify both mundane and complex security flaws. These experts have sufficient knowledge and experience to identify flaws you might overlook if you audit the code yourself.
During the audit, you are notified about the identified flaws and the recommendations for fixing them. Afterward, the auditor attests that you’ve implemented the recommended fixes. Once done, the auditor prepares a formal report certifying that your contract has been audited and is safe to use.
Audits don’t identify all the flaws, especially in a rapidly evolving blockchain sector where new security risks can arise anytime. However, it helps your blockchain platform stay as secure and high-performing as possible.
