Have you ever wondered about how platforms in DeFi space are secured? And, if they are secured, then who ensures their security? The short answer is smart contract audits. You might already be aware of smart contracts. But smart contract audits sound like a new term? Relax, we got you covered. You would be confident about the term after reading this article.
Need For Smart Contract Audits?
In our traditional banking sector, when we stake assets such as our fiat money, gold, or any collateral in banks, we know they are secure. Sometimes, we even put the savings of our lifetime in the banks. But, the question is why?
The answer is that we are aware that they are regulated by various organizations such as governments and regulatory bodies such as the OCC in the U.S. All exchanges and banks are regulated by some regulatory bodies.
In a decentralized world, code controls and regulates everything. But what if there is a flaw in your platform’s code? Then, you run the risk of losing all of your savings.
All platforms in the DeFi space, such as lending protocols, AMMs, and exchanges, are all built using lines of codes called smart contracts. Smart contracts trigger automatic actions making a platform decentralized.
But, at the end of the day, these are just lines of code, and a single flaw can result in the loss of millions. Here come smart contract audits.
Smart contract auditing is a process where a company or a third-party organization with no direct connection with the protocol’s creators validates the functionality of a smart contract platform.
What Does A Smart Contract Auditing Firm Do?
Now, smart contract auditing firms will perform these functions for you:
- It checks for any error in the code.
- It identifies loopholes in the system.
- It will ensure the safety of your funds.
- It will also run checks for any typographical errors and validate your wallet address.
How To Choose A Smart Contract Auditing Firm?
There are two major landmarks to look for in a smart contract auditing firm would be:
- The portfolis of projects/platforms that a firm have audited in the past is the best way to know about thier work.
- Another factor to look for in a good auditor is the quality of audit reports. A good report contains a detailed description of all the loopholes found during the investigation period.
Best Smart Contracts Auditing Firms To Hire In 2022
There are countless smart contract auditing companies present in the market, but these three firms stand out from the crowd:
Certik
Yale and Columbia Professors together founded Certik in 2018. Certik is a blockchain security firm that leverages AI technology and Formal Verification for securing blockchains, smart contracts, and Web3 apps.
As per its website, the Certik team has performed more than 1,800 audits on well-known protocols worldwide. It is often seen on the Rekt leaderboard.
The 4-year-old firm also offers on-chain investigation and security monitoring tools in the shape of the SkyTrace and SkyNet products. Its major clients include BNB chain, Terra, Polygon, and The Sandbox.
Meanwhile, the company’s official Twitter handle routinely updates on security alerts and hack analysis.
OpenZeppelin
OpenZeppelin is one of the leading crypto services companies and cybersecurity technology companies, founded in 2015. Over the years, it has gained the trust of many well-known DeFi firms and NFT projects,
The company has a strong track of protecting funds in various leading organizations in the crypto space, including Ethereum Foundation, Coinbase, Compound, Aave, and The Graph.
Recently, the firm won a large contract defeating Trail of Bits and ChainSecurity, to provide ongoing security for Compound.
Quantstamp
Quantstamp is another leading and most recognized smart contract auditing firm in the blockchain sector. It has conducted over 200 audits and secured assets worth over $200B for various blockchain platforms, including BNB Chain, Cardano, Ethereum 2.0, Solana, and protocols such as Maker, Curve, and OpenSea.
Quantstamp consists of individuals who possess working experience in giant tech companies such as Google, Facebook, and Apple. Its highly experienced and strong-headed team offers auditing services in any language, such as languages particularly developed for use in blockchain applications.
Wrap Up
With the expanding Defi space, more and more projects are coming out in the market. Due to this, a smart contract auditing firm gets to spend less time on a single platform.
Today, there is a flood of projects in the DeFi space, which doesn’t seem to stop anytime soon. With this rise in demand for smart-contract-based platforms, demand for smart contract auditing firms is also increasing.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/05/23/3-best-smart-contract-auditing-firms-to-choose-for-your-project-in-2022/