Why Do We Need Smart Contract Audits?
With a large number of values being transacted or locked in smart contracts, they become targets for malicious attacks from hackers. A small coding error can lead to the theft of large amounts of money. For example, the DAO hack on the Ethereum blockchain resulted in the theft of ETH worth about 60 million dollars and even caused a hard fork in the Ethereum network.
Since blockchain transactions are immutable, ensuring the security of the project's code is very important. The highly secure nature of Blockchain technology makes fund retrieval and issue resolution difficult, so it is better to prevent vulnerabilities in any way possible.
Smart contract security audits review and comment on the smart contract code of a project. Typically, these contracts are written in the Solidity programming language and provided via GitHub. Security audits are very valuable for DeFi projects expected to handle blockchain transactions worth millions of dollars or large players. Audits usually follow a four-step process:
1. The smart contract is given to the audit team for initial analysis.
2. The audit team presents its findings to the project for follow-up.
3. The project team makes changes based on the issues found.
4. The audit team issues their final report, considering new changes or unresolved issues.
For many crypto users, smart contract audits are crucial when investing in new DeFi projects. It has become a standard for projects that wish to be taken seriously. Certain audit providers are also seen as industry leaders, making their audits more valuable in the eyes of investors.