The Role of Audits in Cryptocurrency

Audit is a procedure whereby developers check the underlying code and/or algorithm that make up the systems and applications.

What is audit?

Audit is a process whereby developers check the base code and/or algorithm that makes up the systems and applications, helping them find potential bugs or points of failure before they are deployed. Audit is usually performed by a third party, which ensures that the procedure is unbiased and effective.

In the blockchain industry, audit has become a common practice: Many projects rely on this technique to ensure the security of their decentralized protocols smart contracts and provide their users or token holders with confidence in their security.

Code auditing can be done in two ways: manually and automatically. Manual analysis is the most efficient method of finding bugs in the code. At the same time, it takes more time and requires a medium-sized development team. Automated code analysis provides quick but efficient code evaluation. Although the latter method is somewhat preferable for traditional businesses, manual code analysis is crucial for crypto projects, as launching with undetected vulnerabilities could mean losing millions of money, especially for DeFi projects.

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