Smart Contract Audits: All Your Questions Answered

Are you wondering if your smart contract is secure? We already know blockchain networks are hard to hack into, but what about smart contracts? I’ve got some bad news for you, smart contracts are just as vulnerable as any other computer code. In fact, smart contracts make better targets for cybercriminals because they’re often used to manage millions of dollars worth of cryptocurrency. That’s why it’s so important to have smart contract security audit services before you deploy your code to the blockchain network.

What is a smart contract audit?

Such an audit is an assessment of a smart contract’s security by a third party. The auditor will check the code for any flaws that may expose the network to a security risk. To do this they may manually review the code or use some automated penetration testing tools. Of course, in the end, irrespective of which method they use, it is coupled with their expert knowledge and past experience with smart contracts. They will also check to make sure the contract is compliant with all of the relevant laws and regulations.

Why do you need smart contract audits?

Smart contracts are used for:

• managing data transfers
• authorising transactions
• managing transactions
• giving permission to wallets/accounts
• revoking permissions granted
• managing the gas price for each transaction

and many more functionalities.

All of these tasks come with risks and challenges. For example, if you’re using smart contracts to manage your data and currency transfers, what happens if that data is recorded with errors?

Remember, once a transfer takes place, a record of it will forever be stored on the blockchain network. That’s why it’s so important to make sure smart contracts are secure and perform as intended. With smart contract audits, you can identify vulnerabilities in the code and fix them before they lead to a security incident.

What are some common smart contract mistakes?

One of the most common mistakes seen in smart contracts is coding errors. These can lead to serious security breaches, so it’s important to have your code audited by a professional. Other smart contract blunders are:

• Indirect execution of unknown code – this can happen if a smart contract calls on another smart contract that has been written by someone else. The code in the second smart contract may not be as well-tested as the first smart contract, so it could contain vulnerabilities.

Redundant entries – smart contracts can become very complex, so it’s easy for mistakes to be made. One common mistake is duplicate code or data entry. This can lead to false records and loss of assets.