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Smart Contract Audit – What Is It and Why It's Important

Vitaliy Basiuk
Contributor
Alissa Adams
Editor Fact checked
June 7, 2023 | UPD: June 7, 2023 | 10 mins min. reading | 345
Smart Contract Audit

Smart Contract Audit – What Is It and Why It’s Important

Blockchain technology is invulnerable, but not every application is perfect. Some apps may produce imperfect smart contracts. When it comes to smart contracts, the rules are written in computer code, which leaves zero tolerance for error. The code is final after it has been made public.

This emphasizes the importance of having a system that can promptly identify security vulnerabilities and other problems with smart contracts. As part of an audit for vulnerabilities and inefficiencies, blockchain security specialists examine the code of a crypto or blockchain project line by line.

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FAQ

What is an automated audit?

Advanced software is utilized in an automated smart contract audit to identify vulnerabilities. While this methodology does decrease the audit duration, it’s important to note that the software will inevitably have constraints. The occurrence of false positives should always be taken into consideration. In addition, automated software may not be able to detect intricate security vulnerabilities.

When is the best time to look for an external smart contract auditing service?

It is advisable to conduct an Interim Audit during the development of an application that involves intricate components that have already been programmed. This will enable an experienced developer to scrutinize the code for any potential security loopholes and to ascertain that the project is progressing as planned.

How long does the auditing process take?

The duration of the audit procedure is influenced by multiple variables, such as the intricacy of the business specifications, code quality, dependencies, and incorporation with current protocols.

What are the standards for smart security audits?

At present, there are no established norms or official bodies responsible for validating and accrediting the precision of smart contracts with regard to the code reflecting the signed contract.

Are evaluations commanded without regulations a genuine opportunity to pursue?

Performing regular and thorough settlement reviews is crucial to prevent significant financial losses and protect the reputation of your partnership. A smart contract’s state can be accurately assessed by a business entity like EvaCodes, providing developers with confidence and awareness.

What is an audit report?

Upon completion of the entire auditing process, the auditors furnish a report. It facilitates the establishment of transparency within the process. The vulnerabilities are classified into critical, major, and minor. The audit report contains a status list of the issues. The resolution of issues in projects is dependent upon them and must be completed prior to the release of the final report.

Why rely on audits?

Audits have emerged as the industry norm, providing investors and users with a reliable means of ensuring security. When each project possesses a badge, it loses its significance as a straightforward indication of excellence. It is crucial for developers to review the audit personally. It is advantageous for developers to examine the comments and potential error severity, even if they have limited technical knowledge.

What is the time scale to complete an audit?

Performing security testing on smart contracts is a laborious process that encompasses multiple stages. The duration of conducting a security audit depends on the type and intricacy of the project. Typically, the process requires a duration of 7–10 days. If the project is lengthy and intricate, it may require up to a month to conduct an audit.

What is the difference between manual and automated smart contract audits?

Auditors conduct two types of audits to assess vulnerabilities in smart contracts, namely:

Manual auditing refers to the process of reviewing and analyzing data or information manually, without the use of automated tools or software. This can involve examining financial records, conducting physical inspections, or reviewing documents to ensure compliance with regulations or standards.

Automated auditing refers to the process of using software tools and scripts to automatically evaluate and analyze various aspects of a system or application. This can include checking for security vulnerabilities, compliance with industry standards and regulations, performance metrics, and other relevant factors.

Can I conduct a smart contract audit myself?

Performing an audit on a smart contract is essential. Smart contracts must be free of any security flaws as they are susceptible to exploits. Thus, it is advisable to depend on a skilled security auditor with the technical expertise and experience to perform the task on your behalf.

What benefits does a company get upon passing a smart contract audit?

Performing a smart contract audit allows developers to detect and address any vulnerabilities in a smart contract that could potentially be exploited by malicious actors, resulting in significant harm to the organization and its users. The passing of the audit will serve as evidence of the organization’s reliability to potential investors and partners.

Will I get recommendations on addressing detected issues after an audit?

Experienced developers generate a comprehensive primary audit report for clients initially. The code includes all vulnerabilities. In conjunction with their findings, they also provide suggestions for resolving the identified problems. Ultimately, the developers furnish the conclusive audit report to determine whether the susceptibilities have been appropriately resolved.

Do security engineers pay attention only to security vulnerabilities?

In addition to addressing security vulnerabilities, security engineers are responsible for developing and testing new security functionalities, managing security incidents, strategizing and executing computer and network upgrades, and resolving technical issues.

Why should I trust EvaCodes?

EvaCodes employs a team of proficient smart contract auditors who possess extensive knowledge and expertise in the field. Our team of developers is well equipped to handle unexpected security issues as we have conducted thorough audits on over 175 smart contracts and collaborated with 145 clients who had diverse security needs.

Categories:
Blockchain
Smart Contract
Web3
Written by
Vitaliy Basiuk
COO & Co-founder

Written by Vitaliy Basiuk
COO & Co-founder at EvaCodes | Blockchain Enthusiast | Providing software development solutions in the blockchain industry

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