What Is a Smart Contract Audit and Why Is It Essential?
A smart contract audit is a rigorous security review of the code by external experts to identify vulnerabilities, bugs, and logical flaws before deployment. It is essential because the contract's immutability means any flaw can be permanently exploited, leading to massive financial losses.
Audits are a crucial risk mitigation step.
Glossar
Audit
Verification ⎊ Audit within cryptocurrency, options trading, and financial derivatives represents a systematic examination of code, processes, and financial records to ensure integrity and adherence to established protocols.
Security Review
Assessment ⎊ A security review, within the context of cryptocurrency derivatives and options trading, represents a formalized, periodic evaluation of controls and processes designed to mitigate operational and financial risks.
Smart Contract
Code ⎊ The contract is fundamentally self-executing code deployed on a distributed ledger, embodying the terms of the agreement in an immutable format.
Smart Contract Audit
Review ⎊ The systematic process of examining the source code of a smart contract to confirm its functional correctness, security posture, and adherence to the stated economic model, especially for contracts managing financial derivatives or large collateral pools.