Julian Ivaldy

Entrepreneur in the web3 - Why and how to audit your blockchain tech

Despite its recent massive adoption, blockchain remains in an early phase of development and is still expected to face huge changes. We estimate that only 5% of the world’s population is into DeFi and cryptos for now. Moreover, it has only been a few months since huge brands and governmental institutions started to pay attention to the ecosystem and its applications. And it’s useless to quote legislation that is almost inexisting since most governments didn’t even start to consider framing the use of cryptos… 

So the world of decentralized finance is exploding: more and more transactions are made every day, and the number of new users keeps increasing. And so does the number of scams! As the blockchain sector is still young and isn’t clearly regulated by strict laws in almost all countries, it is very difficult to get your money back in case of a scam. I think you’re starting to get it, here is the biggest issue for blockchain: security! Facing repeated scamming or rug pull affairs, many investors are still worried by the wildness of the ecosystem and seek more and more ways to secure and prevent their investments. And all this starts even before investing! 

That’s why audits were implemented… Basically, they consist of a third party checking a blockchain-based project (from the team to technical details as the code) to ensure that it is safe and ready to be invested in. More and more security labels like Safetin are emerging to help with this. Smart contract security audit became essential for any legitimate decentralized finance (DeFi) protocol these days.

Investor or project founder: here is everything you need to know about audits πŸ‘‡!

Basics on audits and smart contracts 

As a reminder, most web3 projects (blockchain, DeFi, NFTs…) are based on smart contracts: automated, self-executing, traceable immutable agreements on blockchain. coding files. They made possible complex transactions without any intermediaries or central authority. Security audits consist of reviewing the code of such smart contracts or DeFi protocols to check the functioning. 

DeFi is naturally risky, and the teams in charge of the project have a responsibility to ensure they prevent losses from theft or bugs. Even if it’s difficult to provide legally binding guarantees about the safety of a smart contract/protocol, a series of comprehensive audits by a reputable firm is maybe the best way to reduce the probability of a hack or bug in a smart contract. 

Why are audits so important? 

On the investors’ side, audits are a good way to be sure that a project is safe and verified by a neutral third party. It ensures that the code is functional, that the team has no criminal antecedents (Know Your Customer process), and that the project is coherent enough to be invested in. 

For project founders, audits are essential: in the highly competitive world of DeFi, security is a priority, and users know it. Smart contract audits to ensure that a DeFi project works, can prevent attacks before they occur, and ensure users’ funds’ safety ! Security audits from famous labels can also act as a badge of honor and even create visibility to attract new investors! Beyond security aspects, audits enable you to build a trustful community and prove your commitment and seriousness to customers and partners. For instance, each StaySAFU Audit & KYC is shared with our community of 15,000 investors on Telegram & Twitter, on our site which has 500,000 unique visitors per month, and on our tools for free. Great to attract new investors no?

How does an audit work? 

A security audit is based on the comprehension, inspection, and analysis of the underlying code inside a smart contract. The goal is to highlight any flaws or vulnerabilities in the code, fix them, and make improvements. The audit aims to test the execution of countless tests and many potential scenarios to detect bugs. 

At Safetin, we built a strong auditing process to ensure high quality and trustful audits for projects’ investors : 

  1. To audit a smart-contract properly, you first need to understand what it is supposed to do, and how the developers have implemented the solution. Our team achieves this through discussions with the technical teams as well as initial readings of the code. 

  2. Then comes the heart of the work: the analysis of the smart-contract. First, a part of our team (3-5 blockchain engineers) reads it line by line carefully and points out logical errors, possible optimizations, and even potential critical issues. Then, the same team will launch a testing process, to verify the proper functioning of the smart contract and its robustness against attacks.

  3. Finally, our team produces a comprehensive report including a description of the smart contract protocol, the methods used to analyze it, and a full list of the problems encountered as well as ideas and code snippets to solve them.

A few testing methods for audits: Gas Usage, Functional Analysis, Automated Analysis, Vulnerability Analysis, and Pen Testing. The final report will inform firms about how to fix their code.

How to get an audit? 

If you need an audit for your project, here are a few labels you should consult… 

πŸ‘‰  ConsenSys Diligence

ConsenSys, a leading blockchain company is specialized in producing blockchain solutions. ConsenSys Diligence is the security branch of the firm delivering smart contract auditing services. 

πŸ‘‰  CertiK

CertiK is a blockchain security company that has created a pioneering smart contract auditing technology (+1800 audits). Binance's fund uses CertiK's smart contract audits before investing in any project.

πŸ‘‰  Safetin πŸ‘‘

Safetin is a security label created to ensure more transparency concerning security in DeFi investments. A comprehensive security assessment of your smart contract and blockchain code to identify vulnerabilities and recommend ways to fix them. 

The team places itself as a partner of the companies which wish to audit their token and puts forward the secure side of their token while recommending improvements if necessary. 3 main objectives: creating trust between your community and your project, improving your tech, and giving visibility to the audited projects. 

The projects audited are highlighted on Safetin’s tool, and therefore visible to over 200,000 investors per day.

πŸ‘‰  OpenZeppelin

OpenZeppelin is a big name in Web3 development offering auditing services to some of the biggest names in blockchain, including the Ethereum Foundation and Coinbase. Moreover, it provides contract templates for making secure smart contracts on Ethereum.