How to Conduct a Smart Contract Audit of Your Project

The apps or software backed by blockchain has been the top solution for many businesses and enterprises. Although it offers such tons of benefits, there is still the possibility of flaws. One of the most difficult issues to address these days is blockchain project security.

When blockchain software has a fantastic smart contract, it does not guarantee it is completely secure. It is critical to consider the security audit in order to assure the app’s quality of service.

The smart contract audit is necessary for every blockchain solution project to maintain the quality of deliverance.

An auditing procedure of the smart contract specifications in the various applications may be characterized as a smart contract security audit. The audit tasks are aimed at detecting mistakes and vulnerabilities and their associated difficulties. It is impossible to foresee all of the many circumstances that might influence the terms of the contract; thus changes to the contract terms may be required from time to time based on numerous variables, such as local political, legal, inflation, natural catastrophe, and so on.

In this article, you will know how relevant the smart contract audit is to the whole progress, the steps, as well as the method of the audit. So, buckle up and read this until you finish so that you will come out with such an informative decision for your project.

The importance of smart contract audit

In all business practices, security is always a top priority. Security at a high level is always an important term to run a smart contract. In the future, it is possible that cyberattacks could happen. And when you miss the audit, there are flaws that you might have not realized before. These can jeopardize your business instantly. It is imperative to perform the analysis to prevent the hassles and bugs from happening in the future.

Cybersecurity has been an important topic in the DeFi sector. The set of specifications are facilitating the transaction. So, there are a lot of costs dealt with there. The last thing you desire is that your client’s money got stolen by the crackers. Not to mention that there’s a risk of asset lockdown or losing the contract forever.

Missing a smart contract audit can lead to unimaginable consequences.

For protecting decentralized financial protocols from such assaults, the audit project is essential.

Decentralized finance carries some significant security issues.

Many times, hackers have stolen crypto by hacking the smart contracts that use the slits.

To provide an example, Parity has around 150,000 USD in losses due to ETH.”

Alternatively, the second scenario involves DAO, which lost $55 million.

But the smart contracts I described have issues due to their weaknesses them.

The consequences of even a minor defect in a smart contract may be tremendous.

INC4 has done a large number of smart contract audits and has brought in over $3 million in value altogether.

To undertake a smart contract audit is justifiable if you are concerned about the security of your blockchain application.

The smart contract audit cost is nothing compared to the risks of losing your money because of cyber attacks. 

The smart contract attacks

It is critical to be informed of current potential threats… Previous examples may be studied carefully to learn from them. The scenarios stated above might be beneficial to understand so that it does not happen in your app.

One of the most frequent vulnerabilities to examine is reentrancy. Reentry issues can manifest themselves in a variety of ways and pose a variety of obstacles. Attacks are often extremely unexpected in many situations. This sort of assault occurred at DAO, which lost around $ 55 million.

Reentrancy assaults might occur in a variety of contracts. These provide complicated problems, making it difficult to prevent certain assaults from occurring.

It is critical to collaborate with specialists that understand smart contract logic and have considerable expertise with it. It should be your first need while seeking for engineers to assist you with smart contract audit duties.

Simple functions cannot deal with re-entry hazards. To avoid anything worse from happening, the system must be fortified.

Front running is the second most popular approach.

The problem has grown to be the most serious in the Decentralized financial industry. The attack ever took place in large exchanges like Ox and Uniswap.

When it comes to the front-rushing attack, there are a few more scenarios to consider. Consider addressing this with your developers to ensure that all options are considered.

How will the smart contract audit go?

The first step before beginning an audit is to document the current condition of the system.

The condition of the audited system can be expressed in the form of a number or a release version for the code on GitHub. The quality of the security audit is critical for establishing the checking processes.

Your developers will create a set of criteria for assessing the quality of smart contracts, particularly in terms of security.

The difficulties may differ from one smart contract to the next. Some may arrive with low-risk problems. Some people may have significant security problems.

You won’t know for sure until the auditing team has completed the auditing procedure. The INC4 team will meticulously audit all smart contracts in accordance with a rigorous set of criteria. You will receive the final report, as well as unbiased comments and suggestions for improving security quality.

Approaches to smart contract audit

There are basically two smart contract audit types: manual and automatic…

The automatic analysis, as the name suggests, uses an automatic tool that can save the developers ‘ time and efforts.

The automatic method will run through the process and come up with the bugs and errors reports. Some popular automatic tools are Sithler, Mythril, etc ..

Auto analysis can be a great way to save time. But it is not a perfect solution. There is still the possibility of a false alarm or other missing information.

When the tools cannot understand the code context, the manual code analysis could fill in the gaps.

Most of the time, it can be much more beneficial to use both approaches for maximum results of the smart contract auditing project.