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The advancement in technology is taking new turns every day. Each day we hear different news regarding the emerging field of technology and its miracles. Many applications have been launched for different purposes. Same is the case with Contract Audit; it is a block chain technology application. As the name itself explains that it is a contract that is made for security reasons and immutability. With this you can ensure a thorough analysis of any project’s smart contract.
How it works
The benefit of smart contract audit is that once you built this contract with the help of block chain platform then all the transactions and funds on it cannot be repossessed or lifted. It basically works in a very simple manner. First step is to examine the code of the smart contract that is done by the auditors. Then a report will be generated from it and this report is then passed on to the project so that the work can be started. After all that, an ultimate report is issued that highlights any errors and security issues.
This smart contract audit somehow relates to a regular code audit whose purpose is to look for any security issues in the code before it is being deployed.
Importance of Smart Contract Audit
- It helps in optimizing the code.
- By using the smart contract audit your chances of smart performance increases.
- It acts as a shield against any kind of hack attacks.
Who should use a Smart Contract Audit
It’s not like anybody can use it. It is made for specific people who need such security contracts to keep their projects safe without fretting about its security. It is best suitable for contract developers, product owner of apps, organizers along with the owners of ICO start up and more.
Methods of Smart Contract Audit
There are following methods of a smart contract audit and these are:
- Gas proficiency
The purpose of a smart contract audit is to provide efficiency and optimization. Some contracts get complicated and difficult transactions to finish the envisioned function. If contracts are made efficiently then they can save you a lot of transaction cost. This can be done by putting the gas fees on networks like that of ethereum. The reason for doing this is that when the rate of gas increases there’s a chance for the smart contract to fail.
- Contract susceptibility
Checking for vulnerabilities in the security is the main task. There are some vulnerabilities that are explained below.
- Integer underflow and overflows
This happens when a smart contract deals with an arithmetic operation but unfortunately the outcome comes out greater than the storage capacity. This results in incorrect or wrong amounts that are being then calculated.
- Reentrancy problems
This issue usually occurs when a smart contract calls externally to another external contract. The external contract then gets the hold to call the original smart contract and communicate with it but the problem here that arises is that the balance of the original smart contract isn’t updated at the moment.
- Front running opportunities
If a code is not structured properly then it can cause many issues. It can result in allowing others to use the information for their own benefit.
Audit report
This report is issued after the audit process is over. The audit report contains the list of issues regarding severity. Along with that an audit report contains recommendations and a complete breakdown of the code and where the error exists. A certain time is allotted so that they can work on the report before releasing the final version of the report.
Challenges you need to face during the smart contract audit
- During the audit the developer or the auditor can ask for the access to the code to see if it matches the demands of the author or not. This is considered as the toughest part as it has all the documentation in it.
- It is very important for an auditor to comprehend the working of block chain and the technology related to it.
- An auditor should know that good and bad feedbacks are a part of it so it is not necessary that every client will be happy with the results.
Cost of a smart contract audit
The cost typically depends on the number of smart contracts that are being checked. Generally an audit costs thousands of dollars. The cost of it also depends on the company you are running the audit for.
Conclusion
When it comes to earning and profit the possibilities and opportunities are endless. There are many fields and businesses that can earn you maximum profit like the e-commerce planners who keeps the check and balance of sales and revenue on Amazon. In the case of smart contract audit it is a great thing for users and investors. You just need to ensure one thing that the code must be free from any kind of errors.
