Skyscrapers have rocks serving them as building blocks. In the world of blockchain, smart contracts are what every DeFi project is based on. Smart Contracts are mainly self-controlled, and almost always, they are designed to deal with financial transactions. The true dealbreaker with smart contracts is in the nature of transactions since they are irretrievable. Considering the vast amounts of money transferred via smart contracts, they become an attractive target for various hackers. But that doesn’t mean the issue can not be resolved. The solution to this alarming problem is a smart contract audit.
What is a Smart Contract Audit?
In essence, a smart contract audit does the same as QA testing. The key point in a smart contract audit is the focus on the code lying behind the contracts. Github is an actual treasury storing the scripts of the smart contracts, which are written in Solidity programming language. The smart contract audit finds the bags within those codes, after which comments on them and tries to find solutions for eliminating them. That is just a simple way of explaining the process. The smart contract audit process takes a few crucial steps.
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1) Determining the Scope of the Project
The initial step of the smart contract audit is to determine the scope of the audit. This includes providing the team of auditors with all the details of the project, the architecture, design, and the final purpose of the smart contract itself. All this is needed to understand the purpose of the smart contract and its goal, which in turn helps them improve the code.
2) Test Running
After agreeing on the scope audit, the team runs the code of each smart and its function through the test. During the test, the tools used for the examination may vary and can be both automated and manual.
3) Drafting the Initial Report
When auditors find bugs or any malfunction, they draft an initial report providing feedback meant to fix the errors.
4) Publish the Final Audit Report
The final audit report fixes all the bugs found during the audit and all the actions taken to resolve them.
Why is Smart Contract Audit Important?
A great portion of investors take into serious consideration the security of the smart contracts on which any given DeFi project is based before locking their funds. Due to carelessness, companies increase their chances of suffering from additional financial costs. Thus paying attention to security won’t harm anybody.
Even seemingly minor flaws in the code may result in substantial monetary losses. The crypto community witnessed one such example when DAO got hacked on the Ethereum blockchain. The amount breached was approximately 60 million worth of Ethereum. The problem didn’t end just there. The breach led to not only the money loss but also to the hard fork of the Ethereum network.
As mentioned above, smart contracts are irretrievable, so in case of losing the smart contracts, there is no way to get the funds locked in the back. That’s why smart contract security has become a crucial aspect for DeFi businesses for several reasons.
- To prevent enormous monetary losses: Timely measures keep companies from having additional costs to the budget of the project.
- Leveraged Security: Experts perform double-checking, which decreases the chances of any potential hacks.
- Security Assistance even after the end of the project: Smart Contract Audit Companies assist their partners in an ongoing manner by providing services to improve the current conditions of the smart contract code.
- Receive a vulnerability report: As the auditors get additional details about the project design and architecture, they can also point out the weak spots in it.
How to hire the best Smart Contract Audit Company?
It is not a secret that a smart contract audit is expensive, but there is a reason for that. The auditor team reviews the code raw by raw, which takes a considerable amount of time and is not easy to perform overall.
It is also hard to say an exact price or an exact date of how long the audit will take. That, in general, depends on the scale of the project and how many people are involved in the auditing process. But, the qualities of a good smart contract audit company are easy to determine. Of course, the chosen company should have previous experience in smart contract audit and have a team of professionals ready to answer any inquiry and open to communication. There is no need to look further to find a company like that since Exio.Tech is ready to assist and has a sufficient number of experts to deal with any flow or a bug.
