In the Decentralized Finance (DeFi) ecosystem, security audits of smart contracts are very popular. If you’ve invested in a blockchain startup, the outcome of a smart contract code review may have played a role in your choice.
Most individuals are aware of the value of audits for cybersecurity, but few actually examine the code. To help you make better choices, let’s examine the procedures, instruments, and outcomes frequently observed in smart contract security audits.
An audit of a smart contract is what?
The smart contract code for a project is examined and commented upon in a smart contract security audit. These contracts are often available via GitHub and written in the programming language Solidity. For DeFi projects that anticipate handling blockchain transactions worth millions of dollars or a sizable number of participants, security assessments are very beneficial. The audits typically go in four steps:
1. The audit team receives smart contracts for preliminary analysis.
2. The audit team presents the project with its findings so that it can take appropriate action.
3. The project team makes adjustments in light of the problems discovered.
4. Taking into account any fresh modifications or unresolved errors, the audit team publishes its final report.
When investing in new DeFi initiatives, smart contract audits are crucial for many cryptocurrency consumers. For projects that want to be regarded seriously, it has become the norm. Investors view certain audit firms as industry leaders, which adds value to their audits.
