Meta: Smart contracts are revolutionizing the digital marketplace, and it’s more important than ever to audit them before you put them into use.
If you want to sell your vehicle to another individual, you and that said person visit a public notary who is responsible for notarizing a written, legally-binding contract. They make sure that both parties understand what is being exchanged, the amount, and outline the rules of the transaction.
In the digital world, however, things are a little bit different. Instead of having a physical notary to make sure that the details are correct, companies create computer-verified smart contracts. Their purpose is to outline and save details of a transaction. Often these smart contracts are placed on a public ledger to further ensure trust between parties.
Smart contracts have the ability to facilitate, verify and enforce the terms of the contract. For example, if you’re on a cryptocurrency exchange and decide to purchase an altcoin such as NEO using your Ethereum wallet, a smart contract is generated.
This contract ensures that you get the purchased amount promised, and that until you do, the provider won’t have access to the fund which you provided in return for them.
What Are Smart Contract Audits?
For those of us who have ever been targeted by the IRS, the word “audit” tends to leave a bad taste in the mouth. Smart contract audits are far different than what you’d expect, though. Essentially, it just involves combing through the smart contract and making sure that it’s error-free.
A smart contract audit is usually done twice-over. The first time involves an automated error-finding program. This program runs through, identifies outstanding bugs, syntax errors, and more.
While these automation programs usually catch most of the human errors, they’re bound to miss a few. This makes physical break-testing very important. After combing through the smart contract by eye, the developer should try their best to break the protocol. This allows them to find any weak areas and build them up.
Why Perform Smart Contract Audits?
Your company’s smart contracts are incredibly important. They are in charge of verifying transactions that can range anywhere from a few dollars to tens of thousands of dollars. If a smart contract can be easily hacked, edited, or fails to properly enforce terms, then both parties could lose.
By rigorously auditing each and every smart contract produced by your business, you’ll be ensuring complete transactional security, and ensuring that you build a reputation of quick, reliable, trade with your valued customers.
Before you deploy the smart contract and begin using it in your day-to-day transactions, you’ll want to test it out first. After the developers have successfully performed their smart contract audit, they’ll want to test basic functionality.
It’s far easier to test a smart contracts ability with small amounts of in-house money than it is to risk your customers losing thousands of dollars down the line due to bugs that should’ve been identified during the initial audit.
A business that functions smoothly is a successful business. If you’re getting into e-commerce, cryptocurrency investment, and utilizing blockchain technology, learning how to create and use smart contracts is going to be vital to your process. Before deploying them, performing an in-depth smart contract audit should be one of your top priorities.