Why smart contract security audits are so important

In recent years, various new projects have emerged in the blockchain industry, such as Defi, Gamefi, NFT, Dao, Metaverse, Cross-chain Bridge, etc. These large and small projects have built the current blockchain ecosystem. While the blockchain industry is developing rapidly, attacks against smart contracts are also occurring frequently, and criminals are stealing more and more encrypted assets. All kinds of hacking incidents, I believe it has sounded a security alarm for everyone, smart contract audit services and constantly reminds everyone of the importance and necessity of smart contract auditing.

The blockchain industry has always been a tempting cake for criminals. Whether it is a bottom chain, an exchange, a wallet, a long-lived project, or a new project that has just been launched, criminals are eyeing it. Secretly launching attacks, once a loophole is found, these people will ruthlessly empty the funds to the greatest extent and steal away, causing huge economic losses to the project party, exchanges, wallets and users. These losses are often Irreparable.

At present, blockchain technology and applications are in a stage of rapid development, and they face a wide variety of security risks, from the security of blockchain ecological applications, to the security of consensus methods, the security of underlying fundamental components, and the security of smart contracts. Security issues are widely distributed and dangerous. High, it puts forward a new test for the overall development of the ecosystem, security audit, technical architecture, privacy data protection and infrastructure. Armors, as an established security organization in the industry, has always adhered to a rigorous and unrelenting attitude towards maintaining security in the industry.

We know that on the blockchain, smart contract audit whether it is as small as a token project or as large as a public chain, it is all written in code, and the code constitutes a smart contract. A smart contract is a piece of code written on the blockchain. Once an event triggers the terms in the contract, the code is automatically executed. That is to say, it is executed when the conditions are met, and no human manipulation is required. Simply put, a smart contract is a contract digitization technology that can be automatically executed by a program when certain conditions are met. The contract can be saved more easily, and a certain algorithm governs its operation. Given the input, the equivalent output may be generated, which substantially ensures that the contract will be carried out. From the code point of view, the smart contract is executed in the blockchain environment and cannot be modified. If there is a bug, the contract code must be modified and a new contract must be redeployed. Once the business model of a project is complex, security breaches are prone to occur, which may lead to the loss of on-chain assets.

In the past 5 years, Armors security agency has conducted statistics on nearly 2,000 smart contract projects that have cooperated and audited. Before auditing, more than 20% of smart contracts have security vulnerabilities and hidden dangers. If they are not audited, these vulnerabilities and hidden dangers There will be opportunities for malicious attackers to infiltrate and steal project assets. This also emphasizes the importance of smart contract security audit, and security is the basis for the operation and development of blockchain projects. Smart contracts that have not undergone security audits or are not fully audited are undoubtedly an invisible minefield, and they will be detonated by attackers at some point. The project party and users seem to be walking on the tip of a knife, and there is no guarantee for the security of transactions and assets. In addition to causing huge direct economic losses to the project party, the safety of the project will seriously damage the brand reputation of the project, causing the project to fail to operate normally or even stagnate.

In recent years, cases of being attacked and stolen due to the security audit of smart contracts have occurred frequently, with huge amounts stolen and serious losses. Some are because the contracts have not been audited. For example, the Poly Network contract code has not been audited and verified, and there are loopholes that are exploited by hackers. The attack steals 610 million US dollars. Some are because only a part of the contract is audited. For example, a Defi project only audits the contract part of the token, and a public chain only takes out part of the contract for auditing. These project parties are generally reluctant to spend the money for the overall audit. They plan carefully and take chances at the same time. It is this kind of calculation that gives hackers an opportunity. Incomplete and incomplete contract code audits cannot guarantee security, and the part of contracts that have not undergone security audits may hide serious security vulnerabilities. Many hackers use some algorithms or loopholes in the code itself to launch attacks. For example, some function calls, functions without control rights, unreasonable voting, malicious proposals, flash loan attacks, verification defects, etc. These loopholes and problems can actually be avoided through a comprehensive and compliant security audit.

A good blockchain project must first be a security-first project, otherwise users will invest their assets in the project, and their asset security will not be guaranteed, and the security of smart contracts is the foundation of the project. Armors Security here reminds all project friends that the security audit of smart contracts needs to be meticulous and comprehensive, and it is not allowed to audit only part of the contract. Some money cannot be saved. As the saying goes, greed for small gains will lead to big losses. It is often this kind of neglect that will cause irreparable losses. To pay more attention to the security audit of smart contracts, it is recommended to find a regular security company in the industry to conduct a comprehensive code audit, and to regularly check for updates. Real-time security monitoring services can be used to avoid security risks. Let security penetrate into the blood of the project party, including security awareness, design, coding, management, operation, monitoring, event handling and other aspects.

At the same time, remind exchanges and wallets to pay attention to strengthening the monitoring of transaction addresses to avoid malicious funds flowing into the platform. When investing, users and friends must choose stable and safe public chains and projects that have been audited by many well-known security agencies, and do not put their assets at risk. Attacks may happen at any moment at any time. If the project code is fully audited by a formal audit institution, bsc smart contract audit it is believed that the evil hands of hackers will not be able to touch it.

Armors Security Agency was established in 2017 and is one of the earliest professional blockchain security agencies in the industry. Armors has offered security audits, penetration testing, cross-chain migration, platform security, etc. and is a public chain audit partner of Polygon, BSC, Ethereum, Solana, and other organisations. for more than 2,000 blockchain platforms, exchanges, wallets, DApps and other institutions and projects. All aspects of protection and services. Since its establishment, Armors has recovered more than 32,000 BTC of asset losses for clients.