If you are wondering what a smart contract audit is and how it is done, you are in the right place. Smart contract audits are done by looking closely at crypto project code and pinpointing vulnerabilities. Smart contracts are an important component in the crypto ecosystem and offer a wide range of uses for blockchain.
How does one carry out an audit of an ETH smart contract? Security firms in the crypto arena put the codes through various tests and check performance based on different scenarios. It is important that a project offers complete technical specs and also documentation to go with the process of deployment. Such audits pinpoint issues that could be used by hackers. They are also used to find flaws that prevent a contract from working properly.
Solana audits of smart contracts are slightly different as they depend on the code that is written. Common points of vulnerability include checks of ownership being missed. This means that any attacker could use a fake configuration to bypass access. Smart contracts here are checked for proper documentation, security, and quality of code.
Wondering how such audits benefit a crypto project? An audit is important to clear up kinks and ensure that the code can be used safely by investors. The reason to check is that hackers stole more than $1.3 billion in over 75 incidents in the first 6 months of 2022. More than 65% of these attacks took place on ETH and Solana platforms.
The reason some projects were targeted was that crypto projects put a premium on speed. Failing to audit project codes will lead to more money being lost and crypto companies lose credibility in the wider market.