Blockchain technology has long become the extension of any business industry and, in most cases, can even be referred to as the security insurance symbol. Companies and enterprises widely use blockchain networks to ensure the safety and integrity of their security infrastructure components, such as smart contracts, confidential data, online transaction management, etc.
As a result, the current digital evolution and high demand for blockchain technology have brought various cybersecurity companies and crypto audit firms to light. And as you can already guess, the primary purpose of these companies is to provide security audit services through different analyses and comprehensive assessments.
If you are also keen to explore more about blockchain and crypto audit services, join us, and let’s unlock them together.
What is a Crypto Audit?
The massive implementation of blockchain technologies for vital projects and transactions leads to cybersecurity problems and risks.
And even the fact that blockchain is a decentralized network with many safety regulations and policies doesn’t eliminate the possible existence of vulnerabilities within one of its elements or transactional information. However, that’s precisely where crypto audits and blockchain security testings come to help.
A blockchain audit can be defined as a comprehensive evaluation of the blockchain transactions and crypto assets based on the public ledger. In simple words, the security team identifies all possible system issues and offers remediation solutions for fixing them.
The common problems constantly occurring on blockchain networks are as follows:
- Development Flaws and Mistakes: While writing the blockchain project’s code, developers can make several mistakes that lead to code bugs and errors. As a result, it can become a potential target for future attacks.
- Smart Contract Code Vulnerabilities: Smart contract is the core element of any blockchain-based project. All the vital information, including transaction records and agreements, is stored on the smart contract code. Therefore, in case of any mistake within the code can lead to data leakage.
- Security Assessment Disregard: When blockchain apps are deployed without careful security checking and assessment, they can become a source of huge issues and problems in the future.
Crypto Audit: How to Perform?
The entire blockchain auditing process is performed through four main stages: planning, analyses, exploitation, and reporting. Below let’s review each of these phases in detail.
The first and most important thing the auditors do includes planning the structure of the upcoming blockchain audit, defining goals, and selecting appropriate testing methods.
This phase also covers information gathering, understanding of project architecture, and initial evaluation of the company’s peer-to-peer networks and applications. After the precise direction of the blockchain audit is fully set up, the security experts can move on to the next phase.
This stage is all about reviewing, analyzing, and assessing every corner of the crypto platform and identifying potential security risks.
When the existing vulnerabilities are detected, the auditors move on to the threat modeling: which allows them to discover data spoofing, tampering, and manipulation, as also the system’s response to possible security risks.
When the previous stages are fully complete, and the list of vulnerabilities is already available, it’s time for exploitation to understand possible scenarios and impact areas of these issues on the project’s system.
The final stage of every crypto audit is indeed reporting and presentation. After the auditing is performed, companies receive a final technical report including the audit results, found issues, remediation options, further activity plan, etc.