smart contract audits

Smart contract audits: introduction

A smart contract audit is a comprehensive code review designed to ensure that the smart contract is free from vulnerabilities, errors, or potential exploits. These audits are typically conducted by a blockchain security company, such as Veridise.

During the smart contract audit, blockchain security analysts examine the code to identify various security flaws and logical inconsistencies. The process involves a line-by-line manual review by experienced analysts, complemented by the use of tools like static analyzers and fuzzers.

The completed smart contract audit results in a detailed report highlighting any bugs or vulnerabilities that could be exploited by malicious actors, along with recommendations for improving the code.

Many of our clients choose to publish these audit reports, and you can find examples of our work on the Past Audits page.

What is the unique skill set of smart contract auditors?

Security analysts conducting smart contract audits have a distinct skill set focused on identifying vulnerabilities, with an emphasis on security rather than functionality.

Unlike developers, who build smart contracts, security analysts adopt an adversarial mindset, thinking like attackers to uncover flaws that could be exploited. They are experts in blockchain-specific vulnerabilities such as reentrancy attacks, integer overflows, and gas limit issues, which developers may not always be familiar with.

Analysts are also experienced with specialized vulnerability detection tools such as static analyzers, fuzzers, or formal verification methods to ensure the contract behaves securely in all scenarios.

While developers test for functionality, security analysts rigorously review every part of the code, focusing on edge cases and unintended behaviors that could pose security risks. This unbiased third-party perspective allows them to objectively assess the code without being influenced by the development process or design choices.

This impartiality, combined with deep understanding of security best practices, makes smart contract auditors uniquely qualified to conduct comprehensive audits. Engaging third-party auditors ensures that your smart contract is robust and resistant to potential attacks before deployment.

Smart contract audit: why is it important?

To provide perspective, over $10 billion has been hacked from various blockchain and decentralized finance (DeFi) platforms since 2018. A significant part stems from security vulnerabilities in smart contracts.

A smart contract exploit can severely damage an application’s reputation. Such an exploit erodes the trust of users and investors. Once users’ funds are stolen, they lose confidence in the platform’s security, often leading to an exodus of users and a decrease in total value locked (TVL). Media coverage of the hack typically amplifies the reputational damage, and existing business partners may distance themselves. The attack may also invite regulatory scrutiny. Even if financial losses are mitigated or compensated, the damage to the platform’s image is often long-lasting.

Data shows that projects undergoing smart contract audits are far less likely to be hacked, offering a strong return on investment for blockchain companies.

What makes Veridise the ideal choice for your smart contract audit?

Veridise is the ideal choice for your smart contract audit due to its unmatched expertise in blockchain security and strong academic foundations. Our team includes several PhDs in program analysis, cryptography and software security, as well as professors of computer science and mathematics.

Key infrastructure protocols such as Linea, Risc Zero, Succinct, Manta, Scroll, and Semaphore trust Veridise with their security and smart contract audit needs.

In addition to rigorous line-by-line smart contract auditing, we continuously develop and improve our in-house vulnerability detection tools. Unlike many other auditors who rely solely on off-the-shelf tools, we build and refine our own tools, providing superior detection performance. Our tools give us an edge in finding vulnerabilities that are often difficult for the human eye to detect.

With Veridise, you gain access to security professionals with strong academic backgrounds and the latest industry experience, along with cutting-edge detection tools.