Ethereum, launched in July 2015, is now the second largest cryptocurrency after Bitcoin and the largest smart contract development platform in the world. After a recent encryption crash, The value of ETH has now returned to the level of $ 2,000 +, which is again one of those many desirable commodities!
Smart contracts are now a rage, but they never were. Ethereum was the first to introduce smart contracts at a wider Community level. It still is most advanced a platform for coding and processing smart contracts. This open source forum there is one major developer networks, and this is the reason it can keep up with the ever-changing and growing environment of the blockchain industry.
With Ethereum 2.0, it is certain that its popularity will reach new heights. Currently, the Ethereum 2.0 update is expected to deliver Phase 1 for some time in 2021, splitting a single Ethereum Blockchain into 64 fragments, allowing for parallel processing and thus solving the lingering problem of scalability.
Let’s take a deep look at Ethereum’s intelligent contract auditing skills in this blog!
Ethereum Smart Contract: Introduction
Smart contracts are not in themselves foreign to those active in the encryption realm. However, with so many smart contract processing blockchains, it can be a little overwhelming to choose a favorite. Well, that’s what we’re here for.
Before you move on, check out our other blogs that talk about Ethereum’s competitors in space. Head https://immunebytes.com/blog/.
Smart contracts are kind of Ethereum account, which means they have a balance and can send transactions over the network. However, they are not controlled by any user, but are deployed online and run as a computer program. User accounts can then interact with the smart contract by sending events that perform the function specified in the smart contract. Smart contracts can define a set of rules, similar to all standard contracts, and automatically enforce them with code.
Photo: How Ethereum’s smart contract works
The need for intelligent contract auditing
Given the organizations like Ethereum that allow developers affordable access to their services, anyone can now leverage the power of smart contracts. It is for this reason that smart contracts are considered to be the most interesting area for implementing blockchain technology.
However, this technique is not a challenge. One of the biggest questions is the need to properly scrutinize smart contracts ensure the highest possible risk assessment and that its performance is not compromised by security concerns. Some of the well-known vulnerabilities that have made it difficult for developers are timestamp dependency, front-end, reuse, DoS attacks, insufficient gas problems, and much more. You can read more about these vulnerabilities by visiting our series Intelligent contract errors.
These vulnerabilities have been the cause major hacking in the history of encryption, such as DAO hacking, KuCoin hacking, Coincheck event, and many others, the list is endless. Encryption can never be too careful!
What you can do is get your smart contract verified!
Not only does the audit prevent future hacking, but it also provides recommendations for improving the code and optimizing performance. Let’s see how Ethereum’s intelligent contract auditing is done!
How does Ethereum Smart Contract Audit work?
The audit of Ethereum is not too different from any other audit of a distributed application. The audit shall be performed in such a way that it covers all possible test scenarios and detects any possible errors.
Here are the steps that are an integral part of an intelligent contract audit –
Before digging into the code, auditors want to sit down with the development team to understand the architecture and planned behavior behind the smart contract. White papers and detailed documents have proved to be quite useful at this stage.
Code 2 check
During the code review phase, the review team will examine the code in more detail to ensure a complete understanding of the code. This may include the design and which libraries the developers used, checking the coverage of the test, and the intended purpose of the project.
For a particular business logic, auditors perform automated assessments dynamic analysis tools like– MyThrill, Hyperledger Caliper, Manticore, and so on. In the first steps, it is highly recommended to identify application-critical errors in the test package.
4. manual analysis / functional analysis
Automated analysis sometimes reports false positive results, which is why manually checking the code is always a good practice. It also applies standard software guidelines such as comment code, code structure, variable naming, and avoiding replicated code.
5. known vulnerability analysis
In order for an audit to be called an “intelligent” audit, this step becomes an ultimate necessity. Some vulnerabilities keep popping up in the world of encryption, so it seems sensible to test them separately. These known vulnerabilities include – re-entry, gas restriction issues, timestamp dependencies, and more.
6.Ship inspection report
Once all of these steps have been completed, the auditors combine the findings and recommendations in a report that the client can review.
7. Code corrections
After the first audit report, the developers make the necessary changes and corrections to the code and return it to the auditors for final review.
8. final inspection report
Once all corrections have been made, the auditors combine all the details and analyzes into a report and deliver it to the client.
These steps may be different names depending on the inspection team, but must be followed during the inspection.
Popularity has its drawbacks, and Ethereum, located immediately after Bitcoin, is definitely on the radar of harmful parties! Attacks and scams in the history of encryption and blockchain have taught us one very important thing, that there is no bigger mistake than using unaudited code on maintet. We can never understand how much loss a smart contract includes with the least backdoor vulnerability.
Don’t make this mistake. Check your smart contract before you start an online service! We ensure maximum security at ImmuneBytes by using the latest tools and technology to verify your smart contract. Our inspections are customized and have a wide range of test packages just for you and your project!
ImmuneBytes facilitates blockchain security by using cutting-edge technologies in smart contracts and distributed applications. We have a team of experienced security professionals who are skilled in their niche and provide you with innovative solutions and consulting. So far, we have worked with more than 45 blockchain starters in various blockchain frameworks, with clients around the world, and we have continually developed ourselves to make this decentralized movement a success.
To find out more, visit our website: https://immunebytes.com