A smart contract is a computerized application implementing a contract’s predefined conditions. With the terms of the agreement that operate across a distributed, open blockchain network, the contracts self-execute themselves. They allow trustworthy transactions to be conducted between independent, anonymous parties without needing a central authority, legal system or any kind of external compliance.
What is a Smart Contract Audit?
The smart contract audit includes a thorough inspection of the code of the smart contract developers. This audit helps developers find potential bugs or vulnerabilities before the smart contract is deployed.
Generally, smart contract audits are conducted by a third party or parties that ensure the code is analyzed as thoroughly as possible. Depending on how complex a smart contract is, companies can opt to audit the contract by employing the services of a specialist developer team.
It is very important to get the smart contract code correct before implementation, because it can not be changed once it is written to the blockchain.
Auditing A Smart Contract
There are two specific approaches to auditing a smart contract. The first is that the code is checked manually, and the second is that the code is automatically analysed. Let’s take a look at exactly what each entails:
Manual vs. Automatic Analysis of Code
Going through the smart contract code manually is the easiest way to discover coding issues if you have a good size development team.
In order to find potential bugs and security vulnerabilities, a manual code review may require individual testing of each line of code. A particular focus should be on identifying security issues, as these are the greatest functional obstacle to the effective long-term.
Analysis of automated code is more beneficial because it saves considerable time. Automatic code review often enables the use of advanced penetration tests that spot vulnerabilities extremely quick.
Although this approach makes things easier, there are a range of disadvantages in automated code testing programs too.
The main problems resulting from automated code reviews are that bugs can be overlooked and code is wrongly recognized when it is not. Though false positives may be humiliating, the real problem is the vulnerabilities that have been overlooked. Because of this, it’s always recommended that developers should always manually go over the code even if they’ve already completed an automated code check.
There are many methods that can be applied to a smart contract audit but the end result is the same. The ultimate goal should be that the contract has no bugs and vulnerabilities to protection, and that it works efficiently.
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