What is a smart contract audit

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As a crypto startup or platform, you need a smart contract audit to discover any possible security problems or flawed coding. This way, you will get an opportunity to find a proper solution and make your project secure and optimized. The smart contract audit ensures both the security of blockchain apps and their reliability.

While creating a smart contract, you cannot afford to make mistakes, since the app will run exactly how the code is written, and no future changes would be possible. So, if you notice a mistake after the release, you will have to build an entirely new version, which can be a time- and cost-consuming process.

This is why smart contract audits exist in the first place, namely to make sure the coding is secure and reliable.

What is the importance of smart contract audits?

Leaving your contract without a review is a considerable risk, because there have already been cases when blockchain platforms became victims of massive thefts. This happened not due to any vulnerabilities in the blockchain technology itself, but due to insufficient security measures applied during the platform development.

The audit prevents cases like that. When you get your code evaluated before it is published, you provide your customers with peace of mind that their assets are in safe hands.

And, of course, having your code free of mistakes and bugs is not just important ‒ it is crucial because the security of the entire application and its users depends on it. A proper smart contract audit will combine manual and automated analysis methods to ensure your code is impeccable and, if it isn’t, to point out all the bugs.

What is the price of a smart contract audit?

The price of the smart contract audit initially depends on the complexity of your smart contract. The numbers can vary significantly, and every company has their own price lists to follow.

You can find various price options, but it is imperative that your audit is performed by a team of experts. Smart contracts control financial transactions, so any mistake in the code may lead to great losses.

How does it work?

Your smart contract, just like thousands of others, can be a complex structure with numerous strings of code. The audit is also performed with a specific structure ‒ here are five main steps of this process.

Step one: paperwork

First things first, auditors need all relevant documents:

  • whitepaper;
  • codebase;
  • libraries and protocols.

This will give the team a better understanding of your application.

Step two: running tests

The first row of tests will use many automated tools ‒ a fast and easy way to discover any primary issues. Using automated software helps evaluate significant amounts of code strings.

These tests also included integration testing, pentest, and unit tests.

Step three: manual code review

Because the human factor still exists, automated testing tools will not detect issues associated with this. The audit team looks through the code while also referring to project documentation. This is done to ensure that the application keeps its main features functioning correctly. Also, manual testing can re-evaluate any falsely identified mistakes.

Step four: resolving issues

When the audit is over, the auditors cooperate with the project team to fix issues found previously. This can be a long process, but still, it is an essential step.

Step five: audit report

The auditor will deliver a report outlining their findings after the audit is finished. The project team and anybody else working on the program will find this report to be a valuable tool as it will aid in locating any possible problems that could have gone unnoticed and offer a plan for dealing with them.

How long does a smart contract audit take?

The larger your application is, the longer it takes to correctly audit a smart contract. In general, it can take from a few days to a few weeks until the full report is ready.