Helping you choose the right auditors.
Smart Contracts, the powerhouse of the current Web3 ecosystem, are a complete miracle if you analyse their functionality and significance. They are the foundation our Web3 world is based on today. With immense power and ample possibilities, they equip today’s developers with new functionality. But is it all so good? There must be some other side to them, right?
Why Smart Contract Audit?
When we analyse smart contract from another perspective, we find that it is not perfect. Smart Contracts are only usable if they are free from any vulnerability. The Smart Contract vulnerabilities are the reason for the loss of billions. You would be surprised to know that According to a report by BanklessTimes.com, in 2022, the total amount of funds lost to smart contract hacks is $2.7 billion- a 1250% increase from 2020. These stats raise some concerns.
If the Smart Contract vulnerabilities are dangerous on this big scale, what can be done to reduce the risk to 0?, What measures should be taken to secure yourself or your protocols from being a victim of such hacks? Well, the answer you are looking for is Smart Contract Audits.
What is Smart Contract Audit?
What happens when there is a pipe leakage in your house? If you don’t fix it quickly, your house will be a mess, right? Also, if you think you can fix it yourself, you may not have the expertise to do that. Even if you do so somehow, it may result in some other section of the pipe getting damaged, so you need to call the expert in the subject, right a plumber.
This is what smart contract auditing is, but it revolves around fixing smart contract vulnerabilities, which, if left unchecked, can result in huge losses. Auditors are the experts who can save you and your protocol from millions of dollars of loss if you call them as soon as you are going to launch something, but unlike plumbing, the expertise required to carry out smart contract auditing is just insane. You need a really very competent and expert team to do this because if your audits are not as good as they should be, you might end up getting hacked.
How to Choose?
Now you might have a good understanding of what smart contract auditing is and how important it is to go for an audit. Now the question is how do you pick the best auditing firm to carry out the task? This section is gonna teach you just that. Let’s look at the parameters to select the best auditing team for your protocol.
- Expertise and Experience: A crucial part when deciding on the firm is always checking if they have a dedicated team of professionals with a strong background in Web3-related technologies like smart contract development, cryptography, etc. and looking at the previous clients the firm has worked with.
- Methodology and Process: It is important to know about the different methodologies and processes they go through while conducting audits. Choose a firm with a well-defined structure and transparent process for audits. The depth of the audit can also depend on the plan or package you take. Cost should not be the sole determinant. Find the package with a balance between cost-effectiveness and coverage.
- Track Record: Consider the FIrm’s reputation and track record in the industry. Search for the reviews and testimonials of the client. It’s important to choose a company which has a good history of delivering high-quality smart contract audits and has a good success rate.
- Communication: There is no sense in getting audited if there is no communication between you and the firm, always look for how the firm communicates its findings and recommendations. Clear up all communication-related doubts because clear and comprehensive reports are essential which should include majorly identified vulnerabilities, their severity and suggestions for rectification,
- Industry recognition: Partnerships and recognition from big and reputed organisations serve as a trust mark for the firm. This also demonstrates their commitment to quality and staying in alliance with the latest best practices related to auditing.
- Non-Disclosure Agreement: Always ensure the firm signs the NDA to protect your protocol’s confidential details and code, and have the NDA drafted properly and cautiously to avoid any future complications.
- Post-Audit Services: Some firms offer post-audit services as well. Look at the benefits you get from those services. Opting for these will mean a long-lasting relationship with the firm, which may benefit future audits.
Those were some points to remember while finding a smart contract auditing company to audit your smart contracts. There are many players in the industry to choose from, always look for a firm which gives good project coverage and has a good reputation in the community.
While you decide to go for an audit, it is of equal importance that you prepare yourself for one. Preparing yourself for an audit requires good documentation, project outline and structure, etc.