What is Smart Contract Audit and why is it Important

Smart Contract is one of the most promising applications of blockchain technology. It is a virtual contract that is built using the blockchain platform for immutability and security purposes. Smart Contract also accomplishes the agreement of all parties in the contract, without the involvement of any intermediaries.

With the advancement of node-based technology, smart contract development is one of the best services offered to exist in a real-virtual connection. If you want to know more about a smart contract and how it works, read on.

What is a Smart Contract Audit?

A Smart Contract audit is somehow similar to a regular code audit, which involves highly investing the code to find any vulnerability and security flaws before the code is openly deployed. This audit is performed by a team of certified smart contract developers who scrutinize the code that is used to underwrite the terms of the smart contract. During this audit, the developers can also identify any potential bugs or vulnerabilities before the smart contract is opened to the public.

Smart Contract Audit includes:

• Automatic Code Analysis- This test helps to save developers a massive amount of time when checking the code. It also allows for sophisticated penetration testing which helps to find vulnerabilities and errors.
• Manual Code Review – In this test developers need to examine each line of code to scrutinize it for complication and re-entrance mistakes as well as security issues.

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

Why is Smart Contract Audit Important?

• Enhance smart contract performance
• Code optimization
• Safeguard against hack attacks
• Secure wallets

Smart Contract security is a major issue nowadays. Misbehavior, inefficiency, and security flaws are extremely expensive when a smart contract is executed on the blockchain network. Business industries are especially bothered about their Smart Contract because once it is run, there is no turning back and the money can be stuck in the blockchain network and lost forever.

Thus, to make sure that the smart contract code is written correctly, the enterprises need to hire skilled and certified smart contract developers to fix any issues in their code.

Who needs the Smart Contract Audit?

– Owners and organizers of ICO start-ups

– Smart contract developers

– An individual who needs the trust of stakeholders, contributors, investors, and more.

– Product owners of Dapps

What are the challenges encountered during the smart contract audit?

The smart contract auditors face multifarious challenges such as:

• 1) There are some ideal projects for which a security audit is an afterthought instead of an activity that should be a part of the development process.
• 2) During the audit, the developers/auditors want to access whether the code’s functionality matches the author’s intent. It is the most challenging because it contains missing or incomplete documentation.
• 3) On the technical side, an auditor needs to understand how specific blockchain and related technology work as they rely on different assumptions.
• 4) When the auditors issue their report, not every client is happy with the results.

Final Thought

While there are many ways to approach a smart contract audit, the final goal is always the same. Any security audit should ensure that the code is free from bugs and errors. Thanks to a reputable and experienced smart contract development services providers that help to automate the process of auditing smart contracts, with the help of veteran auditors, the whole process is becoming easier day-by-day.