What Is the Difference between a Bug Bounty Program and a Security Audit?
A security audit is a formal, in-depth review of a smart contract's code by a professional third-party firm before deployment, aiming to find and fix vulnerabilities. A bug bounty program, conversely, is a continuous, post-deployment incentive scheme that rewards independent security researchers (white-hat hackers) for responsibly discovering and reporting new vulnerabilities in the live code.
Audits are preventative and one-time; bug bounties are reactive and ongoing, forming a continuous security layer.
Glossar
Security Researchers
Vigilance ⎊ Security Researchers within cryptocurrency, options trading, and financial derivatives operate as specialized analysts focused on identifying and mitigating systemic risks stemming from protocol vulnerabilities, market manipulation, and flawed algorithmic implementations.
Incentive Scheme
Design ⎊ An incentive scheme is a structured system of rewards and penalties designed to motivate specific behaviors among participants within a financial or decentralized ecosystem.
Security Audit
Vulnerability ⎊ A security audit, within cryptocurrency, options trading, and financial derivatives, assesses system resilience against exploitation, focusing on code integrity and operational protocols.
Bug Bounties
Incentive ⎊ Bug bounties within cryptocurrency, options trading, and financial derivatives represent a contractual offer rewarding individuals for discovering and reporting security vulnerabilities.
Bug Bounty Program
Initiative ⎊ A bug bounty program is a structured initiative where organizations invite ethical hackers to discover and report software vulnerabilities in exchange for monetary rewards or recognition.