Auditing Smart Contracts: the Know-hows
Want to know how to audit a smart contract?
You’ve landed at just the right place!
Smart Contracts are no doubt the most interesting and crucial aspect of the blockchain world but with that comes the risk of being prone to the attention of notorious hackers that are constantly looking for ways to thwart them. It is for that reason the top security professionals advise you to get a third-party audit.
What is a smart contract audit?
Blockchain technology has occupied its leading rank amidst all cutting edge technologies. This made the crypto sector in a progressive way. A smart contract is a set of embedded lines of predefined code. It works automatically when the transaction between the two users is done. Smart Contracts are stored in the public served and cannot be modified.
Smart contract audit is a review of the code as well as the functionality of the code in regard to the white paper and/or other documentation. It also includes the complete writing of a test suite from scratch to near-100% coverage, and manual verification of any math, with the token issuance mechanism being a very large portion of that.
The transactions are made with the help of a Private key, Public Key, and Smart Contract and happen through the smart contract are preceded by blockchain. Smart Contract does not involve any third-parties. The whole transaction and trade with one and one, hence this exchange is also called Peer-to-Peer (P2P) exchange.
This includes design considerations and security exploits. Whoever audits the smart contract will manually review the code, run tests, and use tools. Their fact-supported ideas and meticulousness also enable them to stay acquainted with the latest market trends and suggest to businesses what else they can incorporate into their solutions to stay ahead of the curve.
A smart contract audit involves developers reviewing the code used to underwrite the terms of the smart contract, also allowing the developers to identify any potential bugs or vulnerabilities before the smart contract is deployed.
The implications of deploying a smart contract that has not been audited could be severe and expose it to massive threats. Audits are usually performed by a third party to make sure that it is analyzed as thoroughly as possible.
What are the different types of Audit Services?
- Security Audits: A comprehensive assessment and scrutinization of the code is carried out to point out the potential vulnerabilities in a smart contract.
- Penetration Testing: Performed by a separate team of pen testers, it is an extensive exercise attempt to find the bugs and system exploits.
- Security Consulting: A detailed analysis of the system is conducted to manage the security of the overall product.
Let’s discuss Audit Reports
Audit Reports are a comprehensive written record of the code analysis done by any audit service provider. They give a detailed and informative description of the code review done by the developers, listing vividly the supporting tools used, recognized vulnerabilities, testing outcomes, and methodology followed.
How to Optimize a smart contract audit?
- To facilitate cost reduction in making transactions, gas optimization is done, making a smart contract even better.
- As perfect as a smart code may be, scheming out a plan B never goes in vain, just in case.
- To make the smart contract credible at the core, inclusively re-check dependencies.