Smart Contract Security Audit

1. Smart Contract Security Audit Cyphershield.tech

2. What is a smart contract audit? Smart contract security audits examine and comment on the project's smart contract code. Typically, these contracts are written in the Solidity programming language and provided by GitHub . Security audits are especially valuable if the DeFi project is processing multi-million dollar blockchain transactions or has a large number of participants. Audits typically follow these four steps: 1. Provide the smart contract to the audit team for initial analysis. 2. The audit team submits their findings to the project team for action.

3. 3. The project team makes revisions based on the problems found. 4. The audit team will take into account new revisions and outstanding errors and issue a final report. • For many crypto users, smart contract auditing is indispensable when investing in new DeFi projects. • It has become the standard for important projects. • Certain auditors have also become industry leaders, increasing the value of their audit work in the eyes of investors

4. Why do we need smart contract auditing? • Large amounts of value are traded through or locked in smart contracts, making them easy targets for hackers. • Even small coding errors can lead to the theft of huge sums of money. • Since blockchain transactions cannot be reversed, securing the project code is critical. • The high level of security of blockchain technology makes it difficult to retrieve funds and solve problems after the fact, so it is best to prevent possible vulnerabilities at all costs.

5. How does smart contract auditing work? The process of smart contract auditing services is fairly standard among auditors. While each auditor's approach may be slightly different, the general process is as follows: 1. Determine the scope of the audit. Smart contracts and project specifications are defined by the project (its intended purpose) and the overall architecture. Project specifications help the audit team understand project goals when writing and using code. 2. Provide an initial quotation based on the required workload. 3. Run the test. Its exact nature will vary depending on the audit team, their analytical tools and methods. Typically, both manual and automatic testing methods are used.

6. 4. Create a first draft of the report containing the errors found and provide it to the project team for feedback and subsequent corrections. 5. Consider the actions the team has taken to address the issues raised and issue a final report. Smart Contract Audit fuel efficiency Smart contract auditing does not only focus on blockchain security, but also on efficiency and optimization

7. Contract Vulnerability Much of the work in an audit involves checking contracts for security vulnerabilities. While some problems are easy to see, many exploits advanced techniques and tactics to drain money. 1. Reentrancy problem : when one smart contract makes an external call to another external contract before any effects are resolved. 2. Integer overflow and underflow: When the smart contract performs arithmetic operations, but the output exceeds the storage capacity (usually 18 decimal places).

8. Front-End Trading Opportunities: Poorly structured tickers can provide early warning of buying or selling in the market. This, in turn, allows others to use the information to trade for personal gain. Platform Security Vulnerabilities Most audits include looking at the network hosting the contract, and even the API used to interact with the DApp . If a project may be vulnerable to DDoS attacks, or its website UI is compromised, this means that users will actually connect their wallets to malicious blockchain applications. Cyphershield.tech