A Short Guide on Smart Contract Audit Services
Smart contract security auditing is widespread in the decentralized finance (DeFi) ecosystem. The decision to invest in a blockchain project may be based in part on the results of a smart contract code review.
Although many users understand the importance of auditing, most of them are not ready to delve into the structure of the code and pay the smart contract audit cost. Let’s look at the ways, tools and results of smart contract audits that are important for making effective investment decisions.
What Is a Smart Contract Audit?
A security smart contract audit service allows you to examine the code of a project’s smart contract. Typically, contracts are written in the Solidity programming language and provided through GitHub.
Security audits are especially important for DeFi projects with millions of dollars in transactions or huge numbers of participants. An audit usually includes four steps:
- The audit team conducts an initial review of smart contracts using open source security tools.
- The results of the smart contract auditors analysis (including security risks, security services, and formal verification and security issues) are provided to the project for action.
- The security analysis professionals in project team makes changes based on the issues found.
- The auditing firm (as well as all the auditing companies) issues a final audit report, taking into account new changes and remaining errors to implement into enterprise security counseling.
Many smart contract audit company users consider smart contract auditing when investing in new complex DeFi projects. Audit by a leading audit firm is a standard technical expertise procedure for large-scale projects. At the same time, the security audit reports prepared by leading audit companies are considered more valuable in the eyes of investors.
Types of Blockchain Audit
Testing blockchain security and decentralized applications smart contracts using various protocols and programming languages: Solidy, C++, Rust, Go, Java script, etc.
Audit of User Smart Contracts
This applies to tests done on complex smart contract systems, from cryptocurrencies to consensus mechanisms to determine the vulnerability details and detect the short address attacks.
Wallet and Blockchain Daps
Cyber security check, wallet ID and address, Dapss to protect your digital assets from hacker attacks.
They check the correct operation, configuration and security of the blockchain by checking the consensus algorithm, virtual contract machine and key modules.
Features of Smart Contract Code Audit
Smart contract code auditing is a rather specific area. Despite its small size, a smart contract in Ethereum foundation (aka Ethereum smart contracts) is a full-fledged program that can organize complex branches, cycles, decision trees, and even to automate seemingly simple transactions, it requires thinking through all possible branches at every step.
From this point of view, blockchain development is extremely low-level, very resource-demanding, and extremely reminiscent of the development of system and embedded software in C/C++ and assembly languages. That is why we so love to see developers of low-level algorithms, network stack, high-load services, everyone who has dealt with low-level optimization and code audit at interviews.
Here, the simplicity of the code is the key to survival, nothing heavy works, so the entire arsenal of low-level development is used in the work – algorithms that allow efficient use of resources of blockchain networks, threat modeling, save memory, and vulnerabilities present: Merkle trees, Bloom filters, “lazy” resource loading, loop unrolling, manual garbage collection and much more.
Audit Services in the ICO Market: Opportunities and Prospects
The rapid growth in popularity of attracting funding for innovative projects and startups through the initial placement of tokens (aka Initial Coin Offering, ICO) generates demand for the services of audit firms for independent evaluation of blockchain projects and advising issuing companies on entering the ICO market using a thorough review.
It is necessary to analyze the existing practice provision of audit in the market of primary placement of tokens and substantiates the modern risk-based approach to the evaluation of ICO projects.
The main directions for the development of auditing activities using blockchain technologies are identified. The actualization of the need for the services of independent auditors due to the recent significant increase in the number of refusals of issuing companies to fulfill their obligations, as well as cases of fraud.
It has been proven that the entry of audit firms into a risky but attractive segment of the tokenized economy is only a matter of time. It is shown that the most promising areas of activity related to blockchain technologies and ICOs are the audit of smart contracts, advising on the issuance of tokens and their placement, work with cryptocurrency derivatives and other financial instruments inherent in the virtual economy.
The Importance of Auditing Smart Contracts
When it comes to investments in the cryptographic economy, the authentication of the token standards must be done through integration processes between the team of auditors responsible for checking the code of the assets, ensuring that there are no errors, as well as confirming the suitability of the investment. Thus, audits for mit on users to protect their investments in new projects and verify the operations that the token has performed since its creation.
Typically, developers include links where their audits are posted to their community channels and networks. It can be said that audits are necessary and mandatory for the success of a token-based business plan. These processes give the project credibility as well as a significant advantage in asset security, thanks to the trials and tests carried out during audits, the finances of the project are fully protected until it is released on the blockchain in order to eliminate all errors and achieve excellence.
Smart contract projects must have securely installed code. The slightest mistake can lead to the loss and theft of assets. In this sense, smart contracts must achieve excellence, and auditing is the best way to achieve this.