What Is a Smart Contract Audit and How Does It Mitigate Risk?

A smart contract audit is a thorough review of the code used in a decentralized application or protocol. This process is conducted by security experts who look for vulnerabilities, bugs, and logical errors in the code.

By identifying and recommending fixes for these issues before a platform is launched, an audit can significantly reduce the risk of exploitation by malicious actors. However, an audit is not a guarantee of complete security; it is a critical step in a comprehensive security strategy but does not eliminate all potential risks.