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.