What are smart contract audits, and why are they necessary?
Smart contracts are lines of code that self-execute once pre-determined conditions are met between a buyer and a seller.
What happens if the code has a vulnerability or bug? What if the code was intentionally written with weaknesses to scam users?
To eliminate weak points and vulnerabilities, you need to audit smart contracts.
Many blockchain projects have open-source code, meaning anyone can look at and study the base code and smart contracts.
So, if hundreds or even thousands of enthusiast programmers and prominent auditing firms sift through the code and smart contracts, it’s safe to say that the project has a high degree of security and stability.
Open-source code and audits are what make blockchains impervious to hacks and cyberattacks. The code is available to everyone; therefore, if there is ever something suspicious in the code, the community will flag it.
Auditing and open-source base code are touted as the future because smart contracts can be written to contain zero biases and replace intermediaries.