What is a Smart Contract Audit Security, and Why is it Important?

Smart Contract Audit: Beginners Guide

Blockchain technology has indeed revolutionised many industries. However, hacks and security issues have created a setback for the long-term growth of blockchain applications. Well, blockchain basically focuses on offering a level of protection. Blockchain networks can be secure, while the applications running on them might not be. 

With the rising user base for smart contract services, exposures associated with them are coming into the limelight. 

Smart contract exposure makes them prone to hacking, leading to the loss of digital assets. It is necessary to consider their security aspect seriously. Therefore you need smart contract security audit services to provide a safety shield to your blockchain project. 

Auditing smart contracts enclose the assessment of contracts for safe deployment on blockchain networks, whose firm nature does not permit modifications once the code is live. 

The blog will take you through the detailed examination of a smart contract audit, including its importance, types, and much more. 

Let us Begin!

What is a Smart Contract Audit?

A smart contract audit is somewhere similar to a regular code audit. It analyses the source code to see if it follows the predetermined conditions and behaves as the developers intend. The main aim of auditing a smart contract is to look for any possible errors, issues and security vulnerabilities in the code and suggest improvements and ways to fix them. During the audit, developers identify any potential bugs before the smart contract opens up to the public.

Smart contract audit services include:

Automated code analysis

Automated code analysis saves a lot of time for developers while checking the code. It allows advanced testing, which helps to find vulnerabilities and errors.

Manual code analysis

The developers examine each line of code to analyse it for complications and re-entrance mistakes security issues.

Developers often perform manual analysis because sometimes automated testing includes missed vulnerabilities and code being falsely identified as a problem when it is not.

Why is a smart contract audit necessary?

• It helps enhance the performance of a smart contract
• Adequate code optimisation
• Enhanced security against hacking attacks
• Improved security of applications
• Protected wallets

The security of smart contracts has been quite an issue for some time. Misconduct, inefficiency, and security defects are extremely expensive when a smart contract runs on the blockchain network. Business industries are especially bothered about their Smart Contract because once it’s running, there is no turning back, and the money can be stuck in the blockchain network and lost forever.

To check whether the code is written correctly, enterprises need to hire skilled and certified smart contract audit developers to fix any issues in their code.Smart contracts generally involve finances. Every time a code runs, it records a transaction on the blockchain involving gas consumption. An inaccurate smart contract will not only be unable to fix after deployment, but the errors allow hackers to loot crypto stored in it. As a result, we require a bug-free smart contract, and the audit provides the necessary solution. 

Projects that need Smart Contract Audit:

• Token Agreements/Crowdsales
• DeFi projects
• Decentralised Apps
• NFT and marketplace

Challenges faced during smart contract audit:

The smart contract auditors face numerous challenges such as:

• For some projects, a security audit is a forethought instead of an action which should be part of the development process.
• During the procedure, developers want to assess whether the code’s functionality matches the client’s intent. It may contain some missing or incomplete documentation.
• On the technical side, a smart contract audit developer needs to understand how specific blockchains and corresponding technology work as they rely on different assumptions.
• Not every client is happy when the report is issued.

Final Thoughts

There are many ways to approach a smart contract audit. However, the main goal is the same. Every security audit needs to ensure that the code present is free from any bugs, issues and errors. 

We at Blockcoders provide Smart Contract Audit Services to make it easy for your code to run. We can help make the process easy for you. To know more about our services, contact us for more details about it and discuss your project and requirements with us for your expertise.