How Do Formal Verification Methods Aim to Address Smart Contract Security Vulnerabilities?

Formal verification is a mathematical technique that uses rigorous logic to prove or disprove that a smart contract's code adheres to a specific set of security properties or specifications. Unlike traditional testing, which only checks for known bugs, formal verification can prove the absence of certain classes of errors, such as arithmetic overflows or reentrancy, providing a higher level of assurance for critical financial logic.