If you have some knowledge of blockchains and have dealt with them, you may have come across the term smart contracts. It efficiently automates contracts on a blockchain. You can also get several other advantages from it. It helps you to perform multiple transactions with multiple parties and automates error-free transactions. Blockchain smart contract solutions are the new-age solutions that you can lay your hands on. That’s why smart contract development has assumed so much importance today. 

Today, smart contracts come with several benefits. You should know about them before proceeding to smart contract audits. They include transparency, no intermediary arrangement, instant dispute resolution, guaranteed outcomes, speed, and digitized paperwork. Moreover, these are just to name a few. The best smart contract development company can help you grasp the power for your business. 

Types of Smart Contract Audits 

If you are running a DeFi system for your business, then you need to know about the smart contract audit. It is mainly concerned with running security checks to see that there is no underlying bug in the blockchain. Cyber professionals are the right ones to do the job. You will find such personnel scrutinizing the errors and security lapses of the system as well. Most smart contracts deal with finances, and other valuable asset-based NFTs. So, you need to ensure that they are devoid of any discrepancies. 

As a company that has deployed smart contract-enabled blockchains, you also need to understand that just about anybody cannot audit smart contracts. Such checks are way more complex than you think, they are. Many times, third-party integration has also made such systems vulnerable. If you are not particular about audits, one mistake can cause huge losses to asset holders and investors. 

There are different types of smart contracts. So, you need to know before proceeding further. 

  • Decentralized Autonomous Organization – It involves a set of rules governing smart contracts. These rules are formulated and enforced by the organization owning the blockchain assets. 
  • Smart Legal Contracts – These are legally-enforceable smart contracts. 
  • Contracts of Applied Logics – It is typically built on a decentralized network that combines both smart contracts and a front-end user interface. 
  • There are distributed apps as well. 

Checklist for Auditor Selection for Smart Contracts 

You have to be well-conversant with best practices to conduct smart contract audits. Every smart contract auditor has a particular way of doing things. Moreover, each company and project also differ. However, you should keep the below-mentioned checklist in mind, before delegating the work. 

  • The auditors must study the project properly before executing any task. The study of architecture is extremely crucial, by all means. You need to ensure the auditors are studying each parameter and weighing it against the whitepaper benchmark. 
  • Code freeze is another important step that helps the auditor locate the exact source of the code file. It also prevents developers from making any adjustments during the audit. The code version should exactly be the same, as that released in public. 
  • The analysis is another important step here. It concerns several stages like:
  • Automated analysis – Bug selection software helps to scan vulnerabilities. The developers usually give the code to the auditor for studying. If the auditor finds any vulnerability, they return the same to the coders for reworking. 
  • Manual analysis – Manual inspection by the auditors is also a part of the job. Multiple auditors often review the same and come with incongruencies. 
  • Known Vulnerability analysis – Auditors must put up each line of the code against suspected vulnerabilities and check for shifts. 
  • Pen Testing – They will often deploy the code on a local test net, and perform white hat hacking testing. 
  • Gas usage – Gas usage is also important, as it helps to check for efficiency and functionality. 
  • Reporting is the stage that comprises some sub-steps. You will find them performing the first-copy review and then conducting multiple rounds of testing. The vulnerabilities, if any, are often addressed with a new version of the code. After the auditors complete all the stages, they submit the final report. The development can see to it, how they can further strengthen the vulnerabilities if any. 

Every smart contract development company will pay adequate attention to the task. You should always delegate the task to the most well-experienced development teams in the market. You are bound to get world-class services once to stick to the audit protocols to make your blockchain smart contracts secure and stable. 

Leave a Reply

Your email address will not be published.