What Is a Smart Contract Audit and Why Is It Important?
A smart contract audit is a systematic review of the code that powers a decentralized application or financial protocol. Expert auditors check for security vulnerabilities, bugs, and logical errors that could be exploited by malicious actors.
It is crucial because vulnerabilities can lead to the permanent loss of user funds or protocol failure, as smart contracts manage significant value autonomously. Audits ensure the contract operates as intended and is resistant to known attack vectors.
Glossar
Decentralized Finance
Architecture ⎊ Decentralized Finance, or DeFi, fundamentally reimagines traditional financial infrastructure through blockchain technology, specifically leveraging smart contracts to automate and execute financial agreements without intermediaries.
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.
Contract Audit
Audit ⎊ A contract audit is a rigorous, independent examination of the source code for a smart contract, particularly those governing decentralized finance derivatives or token issuance.
Formal Verification
Process ⎊ Formal verification is a rigorous mathematical process used to prove the correctness of algorithms, protocols, or smart contract code against a formal specification.