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What is smart contract auditing and what is it intended for

06.10.2023
What is smart contract auditing and what is it intended for

A smart contract is a program that in certain ways is similar to a classic agreement, but its difference lies in the presence of business logic installed in the blockchain. It provides for the fulfillment by the participating parties of the terms of the agreement and after that it carries out the established actions. Smart contracts have a fairly wide range of applications; they are relevant in many industries.

Transferring funds to the blockchain is non-refundable, meaning the funds cannot be returned, so Blockchain Security is a pressing issue. Along with the blockchain, a Smart Contract Audit is performed to ensure that the program is invulnerable. Web3 Security Audit provides the following code analyses:

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  • static. This is an examination of the application’s source code. This operation is carried out immediately before launch. In fact, this is a setup method that has been successfully used for blockchain;
  • dynamic. It is used to check the operation of the application under the created conditions. The main purpose is the business logic of the smart contract being verified.

When conducting an audit of a smart contract, it is necessary to create access to the necessary documents, technical documentation, business requirements, etc.

Main stages of smart contract audit: how it works

Any procedure consists of a series of actions, the implementation of which leads to the achievement of a set goal. To fully audit a smart contract, you need to perform a list of actions in strict sequence:

  • conduct detailed monitoring of the program code. The check is performed line by line to avoid errors. Having made sure that the logic of each action is reliably protected from the risks of hacker attacks, you can continue working as usual. This stage of the verification program is the longest and is of great importance;
  • testing in automatic mode is an imitation of various communications with a smart contract and blockchain. In this case, it is possible to use different combinations of tools designed to test the program in automatic and manual modes in order to identify vulnerabilities in the system;
  • provision of a smart contract security audit report, which is compiled upon completion of the activity.

The report can be presented in any form convenient for the client to study. The audit identifies all weaknesses and recommends ways to eliminate them.

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