Overview
Smart contracts are self-executing contracts with the terms of the agreement directly written into code. Because they often handle large amounts of financial value and are immutable once deployed, security audits are critical.
The Audit Process
- Automated Scanning: Using tools to find common vulnerabilities (e.g., reentrancy, integer overflows).
- Manual Review: Experienced security researchers analyzing the logic and flow of the code.
- Formal Verification: Using mathematical proofs to ensure the contract behaves as intended.
Importance
Many high-profile DeFi hacks have been the result of simple bugs in smart contracts that could have been identified during a professional audit.