Smart contracts make the backbone of decentralized finance protocols. Therefore, it is necessary to ensure that there is no inaccuracy in smart contracts and they are free from vulnerabilities. Cross-checking the proper functioning of smart contracts is an important aspect of every blockchain-based project. As businesses are using automated processes for handling finances, the risks of hacking and data stealth are increasing day by day. Well-strategized Smart Contract Security Audit would prevent scams and hacking attacks.
Why Businesses Must Not Deny To Bear Smart Contract Audit Cost?
Nick Szabo was the first person to introduce the term ‘Smart contract’ in 1996. It’s a simple piece of coding and data that resides on a particular address inside the blockchain network. Usually, the programming languages are Solidity and Vyper.
The smart contract program is self-executed as per the predefined criteria. Eventually, it has become an integral part of Ethereum and the alike blockchains. In simple terms, Smart Contract auditors can’t guarantee 100% security against flaws in coding or security issues but carrying out a Smart Contract Security Audit would definitely reduce such possibilities to a great extent. It would help to shield the blockchain from hackers and malicious-minded people.
Recently, when a new NFT character Aku was launched, the creator Johnson lost ETH worth $34 million due to an error in the smart contract, and this amount was much higher than the Smart contract audit Cost. This loss could have been avoided if the codes were checked properly beforehand. This is the reason why checking bugs and technical errors is a crucial part of all blockchain and cryptocurrency projects. Any security loophole might result in huge losses, and it is always preventable.
Cases of Cyberattacks on Smart Contracts
Although blockchain is considered to be fully secure, if there are flaws in smart contracts, it can prove to be risky for carrying out business transactions. Here is some news that raised the eyebrows of many crypto enthusiasts:
- Poly Network company’s digital currency worth $613 million was stolen by hackers in August 2021 due to some vulnerabilities in smart contracts. Carrying out a Smart Contract Security Audit could have saved the company from such a massive loss.
- The Wormhole Cross Chain Bridge Attack on Ethereum and Solana cost over $320 million on 2nd February 2022.
- Solana blockchain users lost approximately $8 million from their wallets on 3rd August 2022. It might have occurred to some errors while importing accounts. Could the Smart contract audit cost have exceeded so much of losses?
Types of Smart Contracts
Before we continue discussing Smart Contract Security Audit, it would be necessary to understand that the blockchain network is immutable. It means that once the smart contract’s code goes live there will be no possibility of making corrections. Therefore, one must how and when the auditing process should be initiated. It won’t be worthwhile to spend Smart contract audit cost without using conscience.
Let’s continue the discussion!
There are four different kinds of smart contracts:
- DAO (Decentralized Autonomous Organization): Such smart contracts follow a set of rules defined by the members of the organization and are not influenced by any external entity.
- Smart Legal Contracts: Such contracts are used for enforcing legal bindings. The contract agreements are executed automatically through computerized systems. Smart Contract Security Audit would help prevent grave mistakes in automating legal agreements through coding.
- Application Logic Contracts (ALC): Such smart contracts are made operational on DeFi and are also used for making devices function autonomously with security. It ensures greater scalability, cost-saving transactions, and automation.
- Decentralized Apps (dApps): Smart contracts for decentralized applications that are based on the blockchain network and safeguard users’ privacy. These types of smart contracts work in sync with other smart contracts to solve a defined purpose. One should not hesitate in paying Smart contract audit cost to eliminate the risks involved with the loss of money due to wrong transactions.
Common Vulnerabilities & Ways To Eradicate Them
Here are some of the flaws and vulnerabilities that might affect the safety of smart contracts:
- Storing Confidential Information The Blockchain
Sometimes, storing any confidential data and information on the blockchain can invite unknown risks. Therefore, it is always necessary to encrypt business-related documents before storing them on the blockchain. The process of Smart Contract Security Audit would prevent loss of privacy that can cost heavily to the business owner.
- Denial of Service (DoS) Attacks
DoS results are the result of network congestion. Such threats occur when someone floods the ports with requests or sends information that triggers a crash. Adding a failsafe in the smart contracts helps to ensure that all nodes have enough storage capability and processing power.
- Lack of Upgrade Options in Smart Contracts
By default, smart contracts are unchangeable but are self-destructed if there are some mistakes in the coding. Carrying out code reviews and debugging the smart contracts before deployment would help ensure that they can be upgraded by using pausable functions or proxies.
The functions of Smart Contracts are visible to all, and anyone with the wrong intentions might try to execute those functions to extract money. However, the level of visibility must be defined clearly to avoid risks. It is better to pay Smart contract audit cost than fall into deep trouble.
Importance of Smart Contract Security Audit
Smart contracts might be prone to hacking and result in irreparable loss. At the same time, errors in coding may put your personal crypto sphere at risk. Each year, we hear the news about crypto stealth worth billions of dollars in the international arena. The list of cybersecurity attacks and vulnerabilities would be never ending unless we take remedial measures by carrying out Smart Contract Security Audit in a timely manner.
Since smart contracts involve finances, it is necessary to make sure that they are totally error-free, otherwise, it would allow the hackers to take away the crypto assets that can’t be recovered at any cost. It is better to bear Smart contract audit cost than fall prey to cyber attackers.
Here are some of the best reasons for carrying out audits of smart contracts:
- It helps in optimizing codes in a better way.
- Improves performance of smart contracts.
- Ensures greater security of dApps.
- Prevents crypto thefts and hacks.
Smart Contract Auditing Tools
It is necessary to use certain tools and techniques to conduct code reviews and eliminate vulnerabilities at the very first instance. Here are some of the popular tools that help to detect hidden bugs and keep your smart contracts fully secure and functioning:
- Solidity visual developer
Smart Contract Audit Cost
The cost of Smart Contract Security Audit depends on the level of complexity in smart contract programming. The auditors provide a detailed report regarding the potential issues in smart contract programming and provide suggestions for the improvement of security. It helps businesses to ensure that the smart contract deployed on the blockchain won’t have functional and operational flaws, and nobody can break the security barriers to steal confidential data and crypto assets.
The Smart contract development cost is set with the mutual agreement between the service provider and the business owner. Thus, it might fluctuate according to the requirements.
Types of Smart Contract Security Audit
Smart contracts audits are categorized broadly as External and Internal Audit
- External auditing is done by outsourced smart contract auditors or a third-party service provider. It helps to have a second opinion from experts regarding smart contract coding. The external auditor who is unrelated to your development team would provide an unbiased perspective on the security, functional, and operational issues related to smart contracts. Hiring an external auditor might be a cost-effective option as compared to employing an in-house team of auditors.
- Internal auditing is done by an in-house team of security professionals. It plays a crucial role in testing all projects for vulnerabilities. Undoubtedly, it helps to ensure that the projects are handled carefully and have no security flaws. However, it would be costly to maintain a team of security experts.
Antier team holds expertise in coding and testing smart contracts. Therefore, it’s the best place to ask for Smart Contract Security Audit services. Our experts will help detect critical vulnerabilities and save your smart contracts from being targeted by hackers.
Wondering about the estimated Smart contract audit cost? Well, we charge reasonable fees for performing in-depth analysis of the smart contract codes, checking logic, and providing support in eliminating bugs and vulnerabilities. Let’s have a discussion!