A smart contract is a self-executing program which serves as an essential base for ICO campaigns held on Ethereum
platform. Thus a smart contract contains all the terms and functions needed to launch an ICO like the number of the tokens, their value, refund mechanisms and many more. If something is wrong, then the founders and investors can lose their money. That's why it's really important to focus on a smart contract code quality and security before starting ICO-token sales. What are the main goals of smart contracts audit?
Remember what happened not so long ago to The DAO (Decentralized Autonomous Organization). A hacker using a rather simple exploit just stole 50 million USD. In fact 10% of all the money ever invested in ICOs was stolen by hackers. So the security is really important. The purposes of smart contracts audit are the following:
- To find and exclude all the bugs and errors in code which can be fatal.
- To guarantee that the users don't waste their amount of 'gas' due to unnecessary transactions. Unfortunately it's a rather common issue for contracts written on Solidity language. Though it's Turning-complete and therefore very helpful for writing really complicated and "interesting" smart contracts, Solidity still has some weak points (but don't worry, all of them can be found and fixed).
- To check the contract for all the security issues from crucial to minor and make changes to reduce the risks of potential attacks.
- To improve the smart contract architecture and its programming design.
- To test it through 'testnet' – an Ethereum network for developers, an imitation of the real Ethereum network.
- You also need to be sure that your site or landing page designed for ICO is well-protected against hacking or most commons threats or vulnerabilities like viruses, broken authentications, etc. That should be an important part of every audit because your investors get the access to your ICO not through the smart contract itself but through the website.
After the audit is over, the founder of the ICO campaign gets the full report. It can be only for confidential use or put in public for other developers or everyone interested in ICO.
But still it's not the time to relax. Actually you may need at least two or three independent audits to be 100% sure that your smart contract is perfectly safe and contain no bugs.
Not only ICO founders need smart contracts audit
. It is essential for investors and also for owners of decentralized applications (DApps). Though the DApps owners do not always launch ICO campaigns, their customers or buyers can severely suffer from bugs or mistakes made while programming a smart contract. Don't let this happen and don't put your earnings at risk. Get a professional smart contract audit and be sure that your money is strongly protected against all intruders and frauds.