In the first part of the article we discussed the value of smart contract audits and their meaning from the investors’ point of view, however, we have barely mentioned the benefits they bring when it comes to individual blockchain projects. Therefore, today we’ll take a closer look at why do projects decide to put their money into audits and what added value they can expect in return.
Transparency attracts investors
This title says it all — financial transparency attracts investors and constitutes a core aspect of a successful organization. No wonder that all of the successful and lucrative projects share their financial reports with the community, as they know it will be acknowledged by investors. Consequently, the ones that don’t do it expose themselves to different long-range accusations from their competitors and can be subject to a bad reputation. At this point of time, there is no better way of showing your financial openness in the crypto world than making your blockchain project undergo a smart contract audit which serves as a mark of transparency and, without any doubts, helps in building trust in investors, shows your projects’ credibility, and settles your competitors’ hush.
What’s more, an audit can also be considered beneficial at the very beginning of your project, even before its launch, when you’re building your brand’s name and aiming to make it visible for the wider audience. Having a smart contract audit certificate confirms to the investors that this particular project has good prospects for the future because it is proven to be secure by a third party and is able to grow and spread faster with lower chances of any attacks or technical obstacles. It also helps in establishing or improving the image of the project’s managing team by showing their professionalism and making investors believe that they are able to think long-term about their project’s security and care not only about the fast profits but also about the future of their project.
Savings
Even though the investors’ opinion is very important, there also are some selfish reasons for making your project undergo an audit, selfish financial reasons in particular. As the smart contracts often serve to hold billions of dollars, it should be in the project’s best interest to secure them and ensure the holders of their token that their funds aren’t prone to any dangerous activities, e.g. hacks. An audit is a confirmed mark of security, a double check and doubly securing your smart contracts builds a trusting community and is a great investment in the future of your projects as the good news always spreads like wildfire.
However, savings don’t always mean financial gain, or financial insurance for the future. When we say savings, we also mean the saving time that comes along with a strong security wall. After the audit, when you’re provided with the extended analysis of your projects’ vulnerabilities you are able to think ahead of time and plan in advance how to invest in the security of your smart contracts. Your project is already in a better position and if you will take care thoroughly of its smart contracts, you may end up saving lots of money on technical support that is needed in case of any issues with cybersecurity or even issues with your code.
Summing-up
Today we’ve learned more about the reasons behind investing in smart contract audits. It’s worth emphasizing that the two main ones are: saving time and saving money because, after all, time and money are the two most important things when building a thriving business. If you would like to learn more about cybersecurity and smart contract audits, follow us on Twitter and Medium to make sure you’re not missing out on any important information.
