A blockchain-stored piece of business logic is all that a smart contract is. The stakeholders who make up the eco system agree on the business logic. The data are saved in Blockchain and retrieved based on the established conditions. A certain blockchain write/read event triggers an immutable execution of a smart contract’s code.
Since most of these contracts deal with money or other valuable assets, smart contract audits are typically necessary. An audit of a smart contract does not ensure that it will be error- or vulnerability-free. However, it guarantees that the smart contract is secure because it has been examined by a computer expert.
Process Involved in Smart Contract Audit
Documentation : It is the first stage in an audit. This applies to the codebase, white paper, and any other smart contract-related documentation. The auditor can develop a high-level understanding of the blockchain application by examining the design documents.
The auditors won’t be able to determine what the smart contract is intended to do without access to the supporting documentation. The auditing process requires extensive documentation, including a detailed project specification. Auditors need to understand what you want the code to accomplish in order to observe it functioning as planned.
The developers and auditors must agree on a code freeze at this point. There won’t be any further code created, or the contract audit won’t take any code into account.
Estimation: Give a preliminary estimate depending on the scope of the work, Considering business complexity, business domain and customer demand.
Testing: The auditor will run automated tests using a variety of tools after they have a firm grasp of the code and the application. This is by far the simplest method for identifying possible problems. The auditors will use a variety of actions, including as penetration testing to seek for security flaws, unit tests to examine specific functions, and integration tests to examine substantial chunks of code.
The effectiveness of the tests’ code coverage can be evaluated using line coverage. High line coverage means the tests are effectively examining every line of code in the application. The auditor will do manual testing after the automatic tests are finished.
Review of Code:Automated tests can find potential flaws in the code, but they cannot comprehend what a blockchain developer is attempting to do with their application. They may also produce erroneous negative results. This demonstrates the necessity of a manual code review.
Auditors find potential problems that automated testing might miss by reading the code and comprehending how everything works together.An audit team can consult the project specification and any other relevant documentation while analysing the code to see whether it functions as it should.
To make sure nothing is missed, manual and automated testing must be combined.
Resolve issues: The auditor will collaborate with the project team to address any code concerns they discover. Although this procedure can be time-consuming and challenging, it is crucial to the project’s success.
You may make sure that your smart contracts are prepared for deployment by fixing all problems.Security is crucial when it comes to blockchain applications. Because of this, it’s crucial to enlist the aid of a group of skilled auditors to find and address any potential problems with your code.
Make sure you have given yourself enough time to do a thorough security audit before starting the deployment process.
Audit report: Once the audit is complete, the auditor will provide a report detailing their findings. This report will be a valuable resource for the project team and anyone else involved in the application. It will help to identify any potential issues that may have been missed and provide a roadmap for resolving them.
Types of Smart Contracts Audit
The process of outsourcing smart contract audits to a party unaffiliated with project development is known as external auditing. Your smart contract gains a new dimension thanks to external auditing. The external audit team is an experienced collection of security experts who offer an unbiased evaluation of your project. Additionally, it is frequently less expensive to hire an outsider than to maintain a team of security experts.
A team of internal security experts will examine projects for vulnerabilities as part of internal audits. Undoubtedly, this could be the initial line of evaluation for your project. A periodic audit can be conducted without advance planning, unlike an external audit. However, keeping an entire staff of security specialists in-house might be expensive.
Benefits of Smart Contract Audit
- Reduce Costly Mistakes
In addition to assisting in the elimination of any bugs in the code, auditing code earlier in the development life cycle helps you avoid financial loss after deployment.
- Avoid security attacks
When developing scripts or updating them, auditing helps to keep a watch on any security issue that smart contract writers mistakenly left.
- Enhanced Ownership
A smart contract security audit examines all the factors to assist prevent its execution so that only the smart contract owner and not hackers may carry out the contracts.
- Analytical Reports
The auditor offers a comprehensive description of the smart contracts, including vulnerabilities and other flaws in the code, to assist developers in fixing them.
- Expert Opinion
The auditors carefully analyze your code to discover any potential security problems in the smart contract. Also, they will assist you improve them by giving suggestions and recommendations for that particular problem and areas of improvement.
- Continuous Security Assessment
The auditing method will assist you in routinely checking your smart contract’s weak points and maintaining its security. Regular security audits will assist you in improving the performance and security of your smart contracts.
A smart contract audit can be approached in a variety of ways, but the outcome is always the same. The contract’s efficiency and lack of bugs and security flaws should be its ultimate goals. The best method to take control of your company’s security is to do a smart contract audit. You can use it to find possible weak points and take action to safeguard your company going forward. At first, the procedure could seem overwhelming, but with these suggestions, it should get simpler. A smart contract must undergo an audit to guarantee both its security and functionality. Knowing the fundamentals of auditing a smart contract will help you preserve your investment and steer clear of any problems.