Blockchain is a relatively new technology that involves a decentralized digital ledger system and security is an obvious concern, which we address in this short article. As the name suggests, a blockchain consists of blocks of data and when a data block is added to the chain, it is analysed by all participants and once added to the chain, the data cannot be altered. Blockchain technology is used in cryptocurrency and financial transactions, while it is also used to facilitate smart contracts.
Smart contracts
A smart contract is an agreement that is written as computer code and the contract automatically executes when predefined conditions are met. These contracts are typically stored on a blockchain and the best form of security is to carry out a smart contract audit from a professional company that specialises in such work. Such an audit would reveal any security issues and if you are planning to launch a blockchain project, we definitely recommend carrying out a smart contract security audit.
Why is a security audit important?
Smart contracts are basically computer code and that means security risks; a smart contract audit looks at the following:
- Inspecting logic errors – Smart contracts can include logic errors that can be exploited by hackers.
- Re-entrancy attacks – A method hackers use to drain funds by repeatedly entering the network.
- Unauthorized access control – Hackers can gain access due to weaknesses in authorizing mechanisms.
- DoS attacks – Denial of Service is a type of attack that can render your smart contract unusable.
Failure to find vulnerabilities can be very costly in the long run, which is why it is vital to have a security audit carried out sooner rather than later. Click here to learn about smart cloud mining for digital currencies.
Situations you can avoid with a smart contract audit
The vulnerabilities a smart contract audit can reveal include the following:
- Mitigate financial risk
- Loss of user trust
- Ensure compliance
- Loss of reputation
Rather than simply hoping that security vulnerabilities happen to others, the best way to ensure that your blockchain project is secure is to make contact with an established blockchain security company and let the professionals carry out a thorough security audit that comes with a detailed report.
How long does a smart contract audit take?
A lot depends on the size and scope of the project, plus the availability of the auditing team; generally speaking, a smart contract audit can be completed in a few weeks. Of course, every blockchain project is unique in its own way and the auditor has many powerful tools at their disposal, which they can use to check the code for issues and vulnerabilities.
Regular audits
In order to ensure that your smart contracts are always secure, we recommend that you arrange regular security audits, especially if the project undergoes regular development and expansion.
Blockchain security is a major issue and arranging for smart contract auditing is the best way to ensure full compliance with regulations. Start with a Google search to find a list of established smart contract audit providers and start the process of checking the code for vulnerabilities.
Chief Content Strategist & Unique Author
Paulo Okellyansy is the Chief Content Strategist responsible for curating and managing the platform’s editorial direction. With an in-depth knowledge of cryptocurrency markets and digital finance, Paulo crafts engaging, informative content that resonates with both newcomers and seasoned crypto enthusiasts. His ability to simplify complex topics and identify emerging trends has helped position the website as a go-to resource for cryptocurrency insights.
