Ethereum smart contracts are now used in cryptocurrencies, blockchain, insurance, mortgage agreements, and even international trade agreements. This is a convenient and secure form of a transaction, which is an automatically executed algorithm that guarantees that the parties fulfill all their obligations.
When signing a standard contract, a notary is usually involved, who checks the terms of the transaction and monitors compliance with legal requirements. An electronic contract differs from the usual one in that it is concluded and signed without the participation of a lawyer.
But this does not mean that bugs or vulnerabilities are absent in it. You should know that you can use program auditing, including iOS penetration testing, before your electronic signature appears in systems. Let's take a closer look at the procedure for auditing the program code in more detail.
Smart Contract Audit for Security Verification
The majority of smart contract transactions take place in the Ethereum project, which provides the greatest functionality, availability, and efficiency.
For parties to make sure that they are entering into a mutually beneficial and secure agreement, they have the right to use the services of Hacken, which is engaged in security audits of such projects. Hacken tools include iOS and Android penetration testing, detection and description of code vulnerabilities, as well as checking the algorithm for logical errors, potential problems with access to the program, etc.
The assessment is provided by independent experts before the contract is written into the blockchain. If you have already completed an electronic agreement and recorded it in the blockchain, its terms are considered fixed and unchanged. If the malfunction of the algorithm or its inconsistency with the business logic is noticed later, the correction of errors and vulnerabilities will require a complete replacement of the contract. Such a step leads to additional financial and time costs, which can be completely avoided at the initial stage.
What Happens if There Is an Error in the Contract Algorithm?
The strength of a smart contract is that it is executed automatically. Each of the parties participating in the program is interested in compliance with the prescribed conditions. If there is an error in the algorithm, it can lead to different types of consequences:
- Incorrect work of the contract
- Attacks on confidential data and financial assets of participants
- Significant damage to the reputation of the company or person participating in the agreement and so on
It turns out that the benefits from the audit performed prior to the conclusion of the transaction significantly exceed the risks that entail code errors and visible vulnerabilities.
