Welcome back to another BARMY’s educating and sharing session!
Those who are familiar with DeFi and crypto projects would have seen a lot about auditing and security of one smart contract. However, not all really understand deeply about this field and still have quite a few concerns regarding the purpose, construct of a proper audit.
Well, you’re in luck because today, BARMY will guide you through the most basic yet needed information about what an audit is and how it works.
I. What is an audit in blockchain?
First of all, let’s go over the definition of an audit in blockchain generally and in cryptocurrency specifically.
A detailed, methodical examination and analysis of the code of a smart contract that interacts with a cryptocurrency or blockchain is a smart contract audit. This procedure is used to find bugs, problems, and security holes in the code so that we can recommend fixes and make changes.
An in-depth examination of a project’s smart contracts is provided via a smart contract security audit. Smart contract code will be examined by auditors, who will then write a report and give it to the project to use. The work previously done to remedy any performance or security issues is then described in a final report, along with any unresolved faults.
II. What does an audit contain?
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:
III. Why is it so important?
Finding serious bugs in a code is the main objective of a crypto audit.
Smart contracts are used to transact or store enormous quantities of value, making them appealing targets for hostile cyber assaults. Small coding mistakes can result in the theft of substantial quantities of money.
Projects can prevent the exploitation of vulnerabilities that could lead to the loss of clients’ assets by conducting token audits through crypto audit businesses. Blockchain audits also give projects the ability to block public access to smart contracts, shielding them from having their weaknesses exploited. An evaluation of a project’s reliability by a reputable cryptocurrency auditor will also be provided to current and potential investors.
IV. How much does an audit cost?
The pricing structure for a crypto audit varies significantly amongst crypto audit organizations and is typically established on an individual basis. For instance, the cost of a bitcoin audit by the cryptocurrency auditor Hacken varies from $8k to $30k.
An audit often costs several thousand dollars. A one big project might easily cost more than $10,000.
V. Top audit firms/companies on the market
CertiK invented smart contract security audits (a web and blockchain security organization). CertiK has audited BNB Smart Chain, Bancor, and Huobi. Additionally, the Binance Accelerator Fund carries out CertiK smart contract audits prior to investing in any project.
For its clients, Hacken offers a variety of security services. These services include web/mobile penetration testing, bug bounty program coordination, crypto exchange ratings, and blockchain security advice, among others. Although Hacken provides a wide range of services aimed at blockchain and cryptocurrency businesses, its ecosystem also includes security technologies that are perfect for any IT enterprises.
The well-known smart contract auditing company Chainsulting was established in 2017. Among its most popular clients are 1inch, MakerDAO, and other well-known DeFi protocols. Additionally, OpenZeppelin offers auditing services to the Ethereum Foundation and Coinbase, two of the biggest names in the blockchain industry.
One of the biggest and most well-known blockchain incubators in the market is the US-based ConsenSys. ConsenSys devotes its resources and technological expertise to the creation of Ethereum blockchain applications and software, primarily financial infrastructures, in contrast to other security companies featured on this list. ConsenSys Diligence, one of its products, provides security analysis for smart contracts as a result. The “cryptography, blockchain technology, and crypto-economic incentive analysis” used in this audit product are state-of-the-art.
A Chinese company called Slowmist specializes in auditing smart contracts. It was established by a skilled group of attack-defense specialists who made the switch to the blockchain industry. They have contributed to the development of regional, global, and national standards for blockchain systems.
SlowMist provides services such as vulnerability scanning, smart contract audits, and defensive deployment. Additionally, they provide crypto businesses with anti-money laundering (AML) services, which authorities frequently demand.
People often look into the audit report of one project to evaluate its value at the first glance. It is important to know how secured the smart contracts are in that project before making investment decisions.
Research by yourself and note that this article is solely for informative purposes. Do not base on just this article to make decisions for your investment!