How do Crypto Audit Companies Work?
Blockchain technology has become one of the leading forces in the financial sector in terms of innovation and productivity. Nowadays, a big part of the CFO’s engagement with the technology comes in the payments and banking sphere as blockchain-based cryptocurrencies (e.g. Bitcoin). And as many experts state, it won’t take long till blockchains technology becomes a fundamental standard for auditing, accounting, and financial reporting.
Blockchain Security Audits
Blockchains are widely used in cryptocurrency facilities and across different companies for online transaction management, smart contract, securing critical data, etc. As digital ledgers reside in a distributed infrastructure, blockchains enable the secure storage and structure of the most crucial information.
With the growth of these technologies, the need for the crypto audit to provide assurance services for the security and validity of public blockchains became a must.
Although a blockchain system is designed to protect data integrity, we can’t say that it is immune to hacking and attacks. And the practice of securing blockchains from malicious attacks is quite complex and challenging itself. That’s one of the reasons why security audit is at the center of attention of many business industries using blockchains as software.
Below are some of the problems leading to vulnerable blockchains:
- Development Flaws: Developing codes without any errors or flaws is impossible. These kinds of errors can make a blockchain vulnerable.
- Smart Contract Vulnerability: The smart contract is the most vulnerable to attack attempts compared to other components.
- Security Assessment Ignoring: The absence of proper security assessments in applications can also lead to security problems.
So, to stay protected from cyber attacks and hacking, it is necessary to conduct a blockchain audit.
The Process of Crypto Audit: How does it Work?
The main goal of the crypto audit is to detect bugs and flaws in a code. A crypto audit conducted by security experts includes identifying all the vulnerabilities and loopholes with the help of automated bug detection tools. Before the audit, the specialist needs to carefully analyze the project infrastructure and recognize the key elements of the system. After that, they can start the manual execution processes of the systematic code.
The blockchain audit has two main phases:
- Threat modeling: This phase reveals the data tampering and enables the detection of attacks (DDoS) on blockchain systems.
- The exploitation of the detected vulnerabilities: This is the last part of the audit process, where all the potential threats and vulnerabilities are known and offered remediation options are.
Companies can prevent theft attempts and secure users’ digital assets by using the conducted audit results.
Besides, auditors have greatly improved their expertise and ability to detect issues with a project or team. Some of the good examples are Quantstamp, SolidProof, and Sentnl. These and other popular security firms in the blockchain space try to safeguard investor interest and make crypto projects trustworthy.
As for the duration of an audit, it varies depending on different factors like the project size and complexity. Generally, it takes several days to a few weeks or even months.
Smart Contract Audits
Blockchain apps use smart contracts for connecting with the blockchain. And because they have security issues and vulnerabilities, apps need to conduct a thorough audit to find possible threats and issues.
A security audit provides a detailed report of a project’s smart contracts. Their key function is protecting the funds invested through them, as all the blockchain transactions are final.
This audit service is widely used in the Decentralized Finance ecosystem. This kind of audit usually consists of four main steps:
- Companies provide smart contracts to auditing specialists, who, in their turn, make initial analyses.
- The auditors report the results of their detections to the project and decide the redemption methods.
- Based on the existing issues, the project team makes new changes and fixes the errors.
- Auditors give the final report concerning new possible errors or issues.
Smart contracts audit is necessary while investing in new and big projects. It also raises the project standard making stakeholders support and take it more seriously.
Top 5 Blockchain Security and Audit Companies
The companies listed below offer blockchain security analysis, crypto auditing, penetration testing, and more.
Quantstamp is a crypto security startup conducting networking, off-chain, and front-end audits. It has performed over 200 audits securing around $200 Billion in value.
Another provider of security services is Hacken. It offers web/mobile penetration testing, blockchain security consulting, bug bounty programs coordination, crypto exchange ratings, etc. Hacken’s products are ideal for the IT sector.
OpenZeppelin is another standard for secure blockchain applications. It’s mostly known for Solidity Libraries development. OpenZeppelin’s services are mainly for building, automating, and operating decentralized applications.
Certik is one of the well-known safety-based platforms out there. Its main focus is on analyzing and monitoring blockchains protocols. The company offers validation and verification techniques for safety and protection. It has also developed Certik Public Chain focusing on weighing Certik’s formal verification platform.
It’s a US-based company and is among the biggest ones in the industry. The primary purpose of this company is the development of financial infrastructure, like Ethereum applications.
Technological breakthroughs and innovations are drastically changing things for businesses with better software to depend on.
Blockchain’s impact is inevitable for them, too, as it’s a fact that virtual currencies and blockchains are the future of the financial world with their modern technologies. So, to stay up-to-date, be aware of possible risks existing in the platform, and follow business compliance, many industries and spheres may need to implement secure and safe technologies.