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When and Why is a Smart Contract Audit Needed?

A smart contract is an automatic execution algorithm within the blockchain. The main task of such an algorithm is to eliminate misunderstandings between the parties and to ensure that all the terms of the contract are necessarily fulfilled. 

The idea of ​​smart contracts appeared back in 1996 but was first implemented in 2013 within the Ethereum system since this platform met all the technical requirements.

Areas of Application

Smart contracts began to be used initially in the field of trading and digital finance management. Soon, the effectiveness of automatic contracts was appreciated, and now they are used in:

  • International trade;
  • Insurance;
  • Health Care
  • Property Management
  • IT

Potential Vulnerabilities

Despite the high efficiency and excellent security of the algorithm from third-party interventions, this is still software with all the risks and vulnerabilities that come with it. That is why smart contracts audit remains relevant in order to detect possible shortcomings in time and correct them before the contract is signed with a digital signature and takes effect.

Potential vulnerabilities include:

  • Internal blockchain errors due to time lag. If this happens, one of the parties sees that the contract is already considered fulfilled, while the other sees that this has not happened yet.
  • Potential disruptions to the EVM or directly in the contract itself.
  • Coding errors that can cause incorrect execution of the algorithm.

It is important to eliminate potential problems in advance, because it is impossible to make changes to an already created and signed contract, or this will require additional financial costs for which the parties were not ready. In addition, any disruptions in work lead to misunderstandings that threaten the financial condition and reputation of the parties. Blockchain security audits help to check a digital transaction for vulnerabilities or inaccuracies and fix them before these problems become critical for partners. You can order such an audit on the hacken.io service.

Order a contract audit from hacken.io, eliminate unpleasant surprises and make sure that your transaction will go through with the maximum level of protection and reliability!

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Written by Marcus Richards

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