Welcome to the blockchain space!
Gone are the days when we would talk about blockchain and web3 or Bitcoin, as the paradigm has shifted to a critical component known as smart contracts. This is trending, and people are more concerned about how to secure them.
They have eased the blockchain interaction. However, the vulnerabilities the hackers exploit are still a significant concern for users.
So many types of cybersecurity threats hover over smart contracts and put them in peril of hacking, resulting in loss of funds. Smart contract auditing eliminates those threats. This is why smart contract audit is pivotal in safeguarding your blockchain projects.
What is a Smart Contract Audit?
Table of Contents
- 1 What is a Smart Contract Audit?
- 2 Some Advantages Of Getting A Smart Contract Audit For Your Web3 Projects
- 3 Common Mistakes In Smart Contract Audit That We Don’t Make
- 4 The Bottom Line:
It is the process through which the auditors go through the source code to check if it properly adheres to the predefined conditions that the developer has intended. Primarily, this procedure revolves around looking for potential threats and cybersecurity vulnerabilities in the source code and recommending effective fixes to eliminate them.
DeFi hacks have become a part of the day-to-day lives of blockchain users.
October is the busiest month of the most active year in terms of hacking activity. With more than half of the month left, 11 separate hacks have stolen $718 million from DeFi protocols.
Maybe, it could be possible to avoid all of these or at least some of these hacks if the auditing process had been effective enough.
Maybe, it could be possible to avoid all of these or at least some of these hacks if the auditing process had been effective enough. Suppose you’re wondering about the benefits of conducting smart contract auditing, then we have the answer.
Recommended: Web3 Audit Company
Some Advantages Of Getting A Smart Contract Audit For Your Web3 Projects
Implementing smart contracts has always been a significant reason to worry for businesses that run on a blockchain. A project that has faults in it, once deployed, cannot be reversed. As a result, you tend to lose the entire contract and its funds. Therefore, it is always suggested to get the audit done before proceeding ahead with your blockchain project.
These are the benefits of getting a smart contract audit.
Helps in Identifying Vulnerabilities
A smart contract audit is done so that the security auditors can look into the blockchain project and find its significant flaws. This way, they help you save money by avoiding costly errors. If they get potential fatal bugs in the early development lifecycle itself, then they can aid you in preventing them from turning fatal after the launch.
Optimize the Performance
When you get an audit done for your web3 project, it enhances the performance of the smart contract and boosts gas optimization. Moreover, when a security auditor checks your code, you get a review from an expert who has spent many years in this industry and can recommend various changes to improve performance. The process will help you eliminate all the code errors while simultaneously ensuring that time and resources are used effectively. Even if there are no errors in your code, it doesn’t run at its optimal capacity unless it is audited.
Enhance the Trust of the Investors
For every business, it is crucial to building trust with the investors and users. A smart contract audit becomes that security stamp that gives the confidence to the investors that you have paid attention to adding one more layer of protection to your project.
In other words, when you conduct this process for your web3 project, you are contributing immensely to safeguarding the reputation of your project. The users and investors then ensure that the project works fundamentally well.
Additional Read: List of common vulnerabilities in Smart Contract
Aids in Preparing Risk Assessment Plans for Future
Every business organization has some or other confidential data that needs to be secured. Risk assessment and mitigation plans help a lot in keeping the data confidential. And what helps in developing these plans?
The audits will create a wall around your blockchain project, saving it from malicious hackers. It serves the purpose of a security drill for your work.
Current tools are made to integrate into diverse development environments to perform continuous security analysis.
Auditors can set up automatic checks to track security flaws as one creates and updates the code.
Get a Detailed Analytics Report.
After every audit is complete, you will get audit reports with all the details of the vulnerabilities found, clubbed up with suggestions on how to mitigate them.
Common Mistakes In Smart Contract Audit That We Don’t Make
As you are already aware, creating precise business logic is essential for smart contracts in order to make them cost-effective. Examining your contract logic and architecture is one of the key steps in the smart contract audit process because this aspect could be frequently missed.
These are the mistakes that are very common in this process, but our auditors do not make them.
Smart Contract Performance Validation
For an effective security audit, smart contract performance validation is a must. Those contracts that have not been appropriately optimized will always consume more gas. As a result, the gas fees will always be high.
Problems with a contract’s performance are frequently related to the code’s quality. It primarily addresses omissions or incorrect ordering in the contract logic. Poor contract optimization often results in the contract functions specified in the specifications not performing as intended. Later, when the issue is not in the contract itself but instead at the boundary of how the contracts interact, it may be tough to identify the problem.
The primary protocol tasks can be completed by a logic that uses the fewest number of transactions possible. Due to this, auditing gas pricing in smart contracts will enable you to maximize project development expenses and make significant financial savings. Additionally, even a well-written contract that is not gas-fee optimized will not be advantageous or feasible to implement. The fee reduction is linked to creating more intelligent smart contract logic since gas fee depends on and rises along with smart contract complexity.
The Bottom Line:
The deployment of smart contracts is presently facing a significant security risk. Even though smart contracts are linked to one of the most secure technologies in use, they contain a unique combination of flaws that make them susceptible to hacking. To avoid exploited smart contracts, paying particular attention to their security aspects is crucial.
It is hard to alter the code once it has been made available on the mainnet due to the immutability of blockchain technology.
Placing smart contracts without doing enough audits might have unfavorable effects and performance that deviates from what the contract was intended to produce.
With the growing use cases of smart contracts, audit becomes an essential part of detecting any major errors that can incur severe costs to the company. The Best smart contract auditors thoroughly examine every line of code used to create a smart contract and recommend changes to eliminate flaws or threats.