Why are smart contract audits important?

Why are smart contract audits important?

The Auditmos team welcomes you on board! Today, we’ll present you with the article in which we tackle the subject of importance of smart contract audits. Together with our cyber security experts, we would like to provide our readers with plenty of reasons behind the significance of these audits. In today’s Part 1, we will take a closer look at what value they bring to the blockchain world in general, as well as, what do they mean for investors.

What are the general benefits of smart contract audits?

First, let’s try to come up with a proper definition to make things easier for everyone. Hence, smart contract audit is, in fact, an extensive analysis of a smart contract’s on-chain code that serves to discover any errors, issues or security vulnerabilities in the said code. To put it simply, it is a necessary check conducted by cybersecurity professionals in order to improve the smart contract’s code security.

The result of this audit is provided in the final report alongside with the safety recommendations and code’s possible future vulnerabilities. Because these audits are so insightful and detailed they are considered a mark of authenticity and integrity. Every audited project by receiving such a mark is automatically considered safer and more transparent, which means that by increasing the number of audited projects, we help in raising general security and transparency levels in the crypto world. What’s important, the audits are also helpful in the cases of separating the shams from the valid projects in the crypto world and making DeFi a safer place. As we all know, the good news spread fast, so thanks to these audits, the DeFi can grow stronger and spread wider, reaching even the supporters of traditional finance that may have been skeptical at first.

Likewise, as blockchain is permissionless, by auditing more and more projects, we’re contributing to making blockchain programs seem less experimental and making them known as tried and tested.

What are the benefits of smart contract audits for investors?

When it comes to putting your funds into new projects, it’s no secret that investors will always choose the ones that have a confirmed security status over the ones that don’t. What we need to keep in mind is that smart contracts often serve to hold billions of dollars and, at the same time, are indecipherable for most people because they are written in newly developed and not yet popular enough coding languages such as Solidity or Rust. Here is when the third-party smart contract audits come in handy by providing the investors with guidance to help them understand which projects are proven to be secure.

With the constant growth of competition and the vast number of new blockchain projects emerging every day, smart contract audits help investors in the selection process as financial openness and transparency are some of the core aspects of a successful organization.

Summing-up

Smart contract audits benefit the crypto world and stand as the best opportunity to bring a cogent confirmation of security for the blockchain projects. At the same time, they help with earning the confidence of future investors by providing an in-depth analysis of the smart contract’s vulnerabilities.

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secure your space — smart contracts and blockchain audits

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