Blockchain Audit’s Supremacy! Yes, they will Save the Future of Finance

Blockchain organizations need to undergo a thorough audit to confirm their internal security practices.

Over the past few years, blockchain platforms have taken center stage in several global IT discussions. This is because the technology not only powers practically all of the current cryptocurrencies but also enables a wide variety of standalone applications. In this context, it is important to mention that the usage of blockchain has spread to a variety of cutting-edge industries, including banking, finance, supply chain management, healthcare, and gaming, among many others.

Discussions on blockchain audits have significantly expanded as a result of this rising popularity, and properly so. Blockchains enable decentralized peer-to-peer transactions between people and businesses, but they are not impervious to hacking and outside intrusion problems. Even though blockchain technology is renowned for its high levels of security and privacy, there have been several instances when networks have featured flaws and vulnerabilities connected to unsafe interfaces and interactions with external servers and applications.  Similar to this, certain blockchains have also been proven to have functional problems, such as weaknesses in their native smart contracts. The technology is now vulnerable to hackers because smart contracts, which are essentially self-executing pieces of code that run automatically when specific predefined conditions are met, may have errors.

Even while several automated audit methods have entered the market in recent years, they are not nearly as effective as security professionals using their manual skills and the resources at their disposal to thoroughly audit a blockchain network. Every piece of code in the system's smart contracts may be properly validated and tested using a static code analysis application thanks to the extremely systematic way that blockchain code audits operate. Here are the main steps involved in the blockchain audit process.

1. Set the audit's objectives.

Nothing is worse than a poorly planned blockchain security audit, which can waste time and resources and create a lot of confusion about the inner workings of the project. Therefore, it is preferable if businesses explicitly state what they may be aiming to achieve through their audit to prevent being trapped with a lack of direction. Furthermore, it is best for both the auditor and the organization in issue to lay out a precise plan of action that must be followed during the entire operation. This can help ensure that the security assessment produces the best results possible and doesn't go astray.

2. Outline the key components of the blockchain ecosystem.

The next phase is typically to define the essential elements of the blockchain as well as its various data flow routes once the audit's primary goals have been established. The audit teams examine the platform's native tech architecture and related use cases in-depth at this phase. This step also enables analysts to identify between the many audited versions of code and any fresh modifications that may have been made to it since the start.

3. Highlight relevant aspects

Nodes and application programming interfaces (APIs) are connected utilizing both private and public networks in blockchain networks, which is not a secret. Auditors often examine these organizations in great detail, doing several tests to make sure that there are no digital leaks present anywhere in their frameworks because they are in charge of carrying out data relays and other fundamental network operations.

4. Threat assessment

Threat modeling is one of the most crucial components of a good blockchain security evaluation. Threat modeling, in its most basic sense, makes it easier and more precise to identify potential issues like data spoofing and data tampering. Additionally, it can aid in the isolation of any potential denial-of-service attacks and reveal any potential for data tampering.

5. Addressing the relevant concerns

The auditors typically use specific white hat (also known as ethical) hacking techniques to attack the vulnerabilities identified once a thorough analysis of all potential hazards connected to a certain blockchain network has been performed. This is done to evaluate their seriousness and any potential systemic long-term effects. The auditors also recommend corrective actions that developers might take to strengthen the security of their systems against potential threats.