Audit of smart contracts

Today, the issuance of own tokens through smart contracts in popular blockchain networks is increasingly used to attract investments in startups. This allows you to attract a wide audience of potential investors.

Definition of a smart contract.

A smart contract is a kind of digital contract that establishes rules for fulfilling the terms of an agreement between two parties. When these conditions are met, automatically performs certain actions. It allows the exchange of cryptocurrency, money, and other goods directly without intermediaries, which simplifies the transaction process and increases security.

The essential components of such a contract are:

• Parties to the agreement use their digital signatures.
• The object of the contract can be goods or services.
• Conditions that must be met for automatic exchange, such as compliance with quality standards.
• A decentralized platform where the program code (algorithm) is written.

A smart contract audit is a thorough analysis of the code, the purpose of which is to identify errors and vulnerabilities using automatic and manual verification methods in order to gain a complete picture of how the contract works and what its weaknesses are.

How does the audit of smart contracts work?

A typical audit looks like this:

1. Defining the scope and goals of the project when writing and using the code.
2. Code verification (manual or automatic).
3. Creation of a draft report with identified errors.
4. Publication of the final report, taking into account all the actions taken by the team to solve the problems.

Audit reports provide valuable information about contract vulnerabilities. Based on this data, corrections can be made so that the contract is executed correctly.

Conclusion

The audit has become a standard for projects that claim a high level of trust. The presence of a certificate from a reliable auditing company confirms the high level of security of the smart contract, which makes the project more valuable in the eyes of investors.

Such an audit can cost several thousand dollars and even several tens of thousands of dollars. It all depends on the size and complexity of the contracts, as well as the depth of the audit.

Contact the law firm Prikhodko and partners and get quality advice on creating such a contract and its further analysis.