Smart Contract Audit Approaches: Pros and Cons
What is a Smart Contract?
Simply put, Smart contracts automate tasks on blockchains, handling payments, asset management, and more. Smart contracts are essential for decentralised applications (dApps), increasing efficiency, enabling complex functionality such as payment and governance, and adding an extra layer of security for all parties involved.
Are smart contracts secure?
Smart contracts are generally assumed to be secure. Like any software, however, they are prone to attacks. As the saying goes, a smart contract is only as smart as the developer who wrote it. This unfortunate fact emphasises the need for safeguarding funds, ensure network integrity, and building long-lasting trust in the Smart contracts are generally assumed to be secure. Like any software, however, they are prone to attacks. As the saying goes, a smart contract is only as smart as the developer who wrote it. This unfortunate fact emphasises the need for safeguarding funds, ensure network integrity, and building long-lasting trust in the blockchain ecosystems. Addressing these issues is resource-intensive, diverting focus from innovation and development, and eroding protocol reputations.
How Are Smart Contracts secured?
There are various established methodologies deployed by companies to ensure higher security for smart contracts within the blockchain space. Two of the most common types are Traditional (centralised approach) Smart Contract Audit, andBug Bounty Smart contract audits (decentralized approach). Both methodologies come with a set of characteristics, both positive and negative.
Centralised Smart Contract Audit
Traditional Smart contract auditing involves centralised entity reviewing code to detect security flaws and providing remedies. Objectives include identifying vulnerabilities, assessing their severity, and suggesting detailed fixes to bolster security measures. The traditional approach to smart contract audits often involves individual or one-time assessments. These singular audits might overlook critical nuances within the coding practices and lack broader context of the entire codebase, potentially leaving blind spots in the security evaluation. As a result, thereʼs a heightened risk of missing interconnected vulnerabilities or failing to grasp the holistic architecture of the smart contract system.
Bug Bounty Smart Contract Audits
Smart contract bug bounty programs incentivise security researchers to detect and report vulnerabilities in exchange of rewards. This method leverages external expertise to uncover missed flaws, supplementing internal audits, and enhancing overall security measures.
Bug bounties ensure early vulnerability detection in blockchain systems. They complement audits by providing multiple view points and tapping into global expertise.
On the other hand, similar to the Traditional Smart Contract auditing, Bug bounties more often than not lack holistic scrutiny over the full database. This also leaves blind spots where blind spots should not be left.
Introducing the Hybrid Smart Contract Model
Recognizing the evolving demands of Web3 Security and the merits of various methodologies, <code-word>Shieldify<code-word> embarked on a journey of innovation. This led to the creation of our Hybrid Smart Contract auditing service, built on the foundation of establishing enduring partnerships with our clients.
Through our Hybrid approach, we examine your entire code base, ensuring comprehensive scrutiny. This enables <code-word>Shieldify<code-word> to enhance the efficacy of audits, detect vulnerabilities thoroughly, and bolster your overall security posture.
This collaborative model not only instills confidence in our partners' protocols but also customizes our offerings to suit their precise requirements, seamlessly integrating Traditional and Bug Bounty auditing methodologies, if and when needed.
Furthermore, the hybrid smart contract model provides flexibility in any aspect of the business and is not solely bound to the auditing approach.
Eventually, it enables the allocation of an entire team to review the codebase, rather than relying on a single auditor, as is typical in the solo auditing model.
In Conclusion
In conclusion, Shieldify's Hybrid Smart Contract auditing service offers a dynamic solution tailored to the evolving landscape of Web3 Security. By fostering long-term partnerships, ensuring thorough codebase examination, and providing customized services, we empower clients to innovate with confidence while safeguarding their protocols against emerging threats.
