It is impressive how smart contracts can propel blockchain technology faster for adoption. By leveraging the advantages offered by smart contracts, more projects are being developed and released into the crypto space. However, there have been quite many failed projects because of the smart contracts too.
If you want to read more about smart contracts, you can read more here.
For example, in the early days of the DeFi craze, Yam Finance was one of the biggest DeFi that caught everyone’s attention. Unfortunately, a breaking flaw in the smart contract caused the project to collapse. Even so, the strong community supports Yam Finance prevail but not as it was.
The main concern for the project was the unaudited smart contracts. Some people pointed out the matter, but the growing amount of Total Value Locked (TLV) suggests otherwise.
What is a Smart Contract Audit?
The audit is a process to identify the vulnerabilities and bugs in the smart contracts. However, an audit is not limited to find bugs or errors only. Plus, an audit should be a necessary step for any projects before they deploy their smart contracts.
There are other advantages to perform an audit, such as coding optimization, function validation, performance, securities, and more. Usually, a project will use the service of a third-party firm with high experience and a credible team for an audit.
An Important Step of a Process
It is undeniable an audit will help a project to gain credibility and trust. Investors will be able to read the report and decide if the project is worthy of their resources.
However, it is also crucial to understand that audited smart contracts with stellar scores are invulnerable. It is a necessary step to take, but it shouldn’t be the all deciding factor.
Some projects are susceptible to other factors outside the smart contracts, such as market manipulation or hacking. We should always consider taking all the proactive measures because the crypto space is a fast-growing industry.