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UncategorizedWhy is Smart Contracts Audit so Important?

Why is Smart Contracts Audit so Important?

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Why is Smart Contracts Audit so Important?

Photo by Oleg Magni from Pexels

Smart contracts are blockchain-based software. The essence of this phenomenon is that the parties agree on certain terms of the transaction, put their electronic signatures, after which the automatic fulfillment of mutual obligations begins. Once the program has started, it is no longer possible to make adjustments to it. You can only delete the contract and start a new algorithm, which requires additional costs and time. Therefore, smart contract audit cost, in any case, offers less financial investment than the cost of a potential error.

Is it possible to make deals without an audit?

Verification of the electronic contract gives both sides that all conditions will be met, and personal and confidential data will not fall into the hands of fraudsters.

Failures in the operation of the algorithm can be both technical and caused by a human factor, be associated with the logic of the process, or other important points. A comprehensive audit of the program before it is launched helps to identify errors, shortcomings, and vulnerabilities in time before they become critical and cause harm.

So you can do without an audit, but the more conditions are at stake, and the more serious the deal, the more important it is to check the algorithm before the launch. And it is important not only to make sure that the processes are logical but also to exclude the possibility of data leaks. Moreover, there are cases of targeted hacker attacks on smart contracts. In some cases, these attacks led to the theft of personal information and funds included in the agreement under the terms of the transaction.

Most often, cybercriminals use the detected combination of several errors for their own purposes. Each of them individually may seem insignificant but they give fraudsters a loophole for infiltration.

How is a smart contract checked?

E-contract and web penetration testing service checks all the code for bugs or vulnerabilities. This process takes place automatically according to a previously prepared algorithm. The following is subject to verification:

  • Code (compilation errors, re-entry, etc.);
  • The logic of fulfilling the terms of the transaction;
  • Data security;
  • Security and safety of monetary or information assets.

Automatic verification is significantly faster than manual one. In some cases, it is possible (and even necessary) to order a comprehensive audit, which will allow you to analyze data security and the correctness of the program. All this can be done by ordering an audit from Hacken.IO

It is better to make sure in advance that a smart contract is safe and secure than to eliminate the consequences caused by errors in its operation.

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