Why does every blockchain project need a contract audit? Let me explain it simply to you 😁

A blockchain project's contract audit (Smart Contract Audit) is a process that helps 'health check' smart contracts, aiming to confirm the safety, stability, and absence of vulnerabilities in its code before it goes on-chain. Doing this can significantly reduce the risks of being hacked, having funds stolen, or experiencing system errors.

Once a smart contract is deployed on the blockchain, it is essentially 'etched in stone' and cannot be modified (unless it was designed from the beginning to have an upgradeable mechanism). Therefore, if there is an error in the code, it is already too late to fix it afterward, which could lead to users losing money, damaging the entire project's reputation, or even causing the project to fail.

The following types of blockchain applications particularly need to undergo contract audits:

Decentralized Finance (DeFi): Because it involves a large amount of user funds, often becoming a target for hackers.

NFT Projects: Contracts are responsible for key functions such as generation, trading, or profit sharing; errors can affect user experience or even result in financial loss.

DAOs, blockchain games, and Web3 applications: The systems are usually complex, with many interactive elements, and a small mistake could render the entire application inoperable.

Contract audits mainly involve the following tasks:

Checking program logic and functionality: Ensuring that the functions written in the contract operate as expected.

Identifying security vulnerabilities: Such as issues that prevent resistance to repeated withdrawals (reentrancy attacks), numerical errors (overflow/underflow), improper permission settings, etc.

Providing optimization suggestions: To make the contract run smoother and the code easier to maintain.

Issuing reports and recommendations: Documenting the issues to assist the development team in making corrections and preventing future incidents.

In summary, a contract audit is like an 'insurance mechanism' for blockchain projects. It is not just for safety; it also enhances user trust, making investors and partners more willing to participate. For every serious Web3 team, a contract audit is not just an option, but a necessity.