What are the Peculiarities and Functions of a Smart Contract Audit?

With a smart contract audit as this instrument you do not need to have security concerns anymore, it can protect your business from many risks by helping to identify and find the best ways to mitigate them. In addition, smart contract audits will increase your feeling of confidence in the security and reliability of blockchain applications. How contract auditing can transform your business in terms of security? Let’s clarify this to overcome your doubts about the relevance of this tool for your projects.

What is a Smart Contract Audit?

Smart contracts are adaptable instruments used to verify and facilitate financial operations and trace the movement of intellectual property and physical things. Security and consistency are core values of smart contracts as they have the authority to distribute high-value resources between autonomous and complicated systems.

The main function of a smart contract security audit is to reveal the nature of possible contracts and discover errors to prevent unplanned financial losses. For this reason, the task of a smart contract auditor is to examine and analyze the smart contracts of a project in depth to evaluate the security degree and ensure relevant protection. As all transactions on the blockchain are irreversible, taken funds cannot be recovered.

Therefore, the value of a smart contract audit is that it studies the code that helps a developer determine defects very quickly and eliminate them timely. Let’s try to figure out why a smart contract audit is a must if you are preoccupied with a business’ security.

Why is Smart Contract Audit a Critical Requirement for a Company?

Today, security remains one of the top priorities for smart contract deployment as when it is ignored, financial losses will be inevitable. For example, even minor coding flaws can lead to money theft and other financial fraud. Why should smart contract auditing be applied?

The Reasons Why Smart Contract Auditing is a Must

• Analytical reporting. You can receive an executive summary of risks and threats and recommendations to mitigate them. Moreover, a thorough and systematic inspection of the code can become the basis for finding solutions and making changes.
• Evaluation of security risks. Smart contract auditing can assess the quality of safety and help you create a dev environment.
• Increased security level. Owners of decentralized products can guarantee the security of the code. As most contracts deal with financial assets and valuable items, smart contract auditing will provide the quality tech expertise necessary for protection from safety vulnerabilities.
• Decreasing the probability of cyberattacks. Writing and altering code can prevent security attacks as you keep an eye on security vulnerabilities regularly.
• Review. Security contract auditors can double-check your code to eliminate mistakes and fake results.
• Avoiding financial losses. If you audit your code in the early phase of the development lifecycle, you can fail to face fatal flaws after launch.

These advantages prove that in the future, a smart contract audit will be more than just a flawed programming attempt. Thus, for business, it will be a chance to increase credibility in an industry, reinforce a competitive advantage, and ensure safer decentralized finance products. However, let’s analyze vulnerabilities in smart contract audits to understand what threats they can contain for a business.

Despite the focus of smart contract audits on security, it can also be challenged there. Let’s analyze the weak points of smart contract auditing that can be threatening to a business.

Key Weaknesses of Smart Contract Audits

Misspelling. Contract initialization is done by constructors who can fail to notice the misspelling of the function while programming by making this function public. Thus, a contract’s function can be executed by any user who can also change the contract’s owner.

• Inability to differentiate between humans and contracts. Failure to recognize whether the smart contract caller is a contract or a person can have negative outcomes. For example, for hackers, it is not a problem to predict a contract’s timestamp.
• Reentrancy attacks. Smart contract auditing can not protect you from reentrancy attacks that are the outcomes of a developer’s uncaring attitude. This is the most destructive kind of attack that involves making an external call back to the original function to drain money.
• Function visibility problem. If a developer fails to define a private function’s visibility and establishes a public one, the contract is under the threat of unauthorized access and destruction.
• Timestamp dependency. The smart contract’s execution environment differs from those that typical programs have because it is on the miner’s side. Thus, the miner can manipulate the current time to meet a set goal and affect the execution result.

Thus, these weak points prove that smart contract auditing requires changes and improvements to fulfill the existing gaps.

Conclusion

In a nutshell, despite existing vulnerabilities, a smart contract audit is a useful and helpful tool for your business that can address many security issues. Without a doubt, smart contract auditing is one of the best solutions for building a truly secure product and protecting it from bugs and vulnerabilities. Moreover, smart contract audits will help you to eliminate coding issues and design flaws.

This is the opportunity to get a clear audit roadmap and receive assistance in better understanding your project. If you still have questions about the audit of contracts and their relevance and significance for your business, we are here to assist you. Contact us and let’s build a secure and successful business together!