How to Secure Yourself in Blockchain Technologies

  • You’ve heard about it so many times and now you believe you know everything. It’s been on the tip of your tongue for quite long and you feel it’s time to finally implement it. What is it? We have no doubt you already know that we’ll talk about Blockchain. This innovative technology has already managed to blow the minds of numerous IT geeks and probably yours isn’t an exception. Now, blockchain isn’t just about cryptocurrency as lots of people still tend to think. It is pretty much implemented in such areas as accounting, energy supply, voting, quality assurance, global payments, you name it. As popular as they might be, blockchain technologies aren’t absolutely perfect yet. Thus, in order to eliminate all the possible flaws, one has to put cybersecurity as a number one priority. Whether you already own a business built on blockchain or only plan on setting up one, smart contract audit is the only valid way to protect it from various known cyber threats. Keep on scrolling and see yourself that it’s not as complicated as it seems.

    What is smart contract?

    A smart contract has no connection to legal contracts as it has a bit different nature. The actions in a smart contract are executed by computers without the help of middlemen and this makes it more trustworthy. Therefore, it’s a computer protocol that checks and makes negotiations in blockchain much easier. Just imagine that a smart contract is a vending machine that made a promise to give you a certain product for a certain amount of money in a certain period of time (sounds like a no-brainer, doesn’t it?). In other words, a smart contract is simply a code. You don’t care much about how it’s working, you just know you’ll get your order in the end. Let’s say, you don’t care because we’re talking about a few bucks right now, but what if we were talking about a sum with quite a few zeroes? Oh yes, now you’d start worrying about how the process is actually done and whether there’s anything that might put you into the risk of being left a zero. That is why there exits a smart contract audit.

    What is smart contract audit?

    Smart contract audit is usually a combination of automated and manual tests performed to find all vulnerabilities of the system and afterward optimize it in the most logical and efficient way. Such audits have saved numerous companies from jeopardy. They say to learn from mistakes, so why don’t we try doing that?! Let’s remember the DAO3.6 million Ether which at now is approximately $2.1 billion USD. You can guess the feeling one should have after your company loses such amount of money. The POWH coin suffered too because of a deficiency in its smart contracts. As a result, that loss was more than 2,000 Ether and the company collapsed. We can keep on naming other sad stories but it’d have taken hours to do that. The point is that all those things happened because companies neglected sybersecurity issues. Blockchain might seem like an immature technology only for those who don’t have all the necessary tools to protect themselves from hacker attacks.

    Why smart contract audit?

    Ordering a smart contract audit is so far the best way to ensure the security of your enterprise and, of course, clients. However, like all other important decisions, this one should be well considered too. Smart contract audits are of great value but only when they’re executed by professionals. Hacken for example, proved that they’re gurus of white hat hackers after they successfully pulled off a PumaPay case. Trough both manual and automated testings, the Hacken team discovered that client’s smart contracts had no issues that could possibly have led to any security breaches. Since PumaPay deals with payments and transactions of various kinds, leakage of any confidential information could be fatal for the company. This means that smart contract audits should be counted not towards the expenses but rather towards the revenue.

    As we all see, technology isn’t standing on one place. It evolves and at the same time it creates new opportunities for committing cyber crimes. The more smart contracts are used across various platforms, the bigger danger they pose. Why consumers should demand that smart contracts or currencies they are investing in have been audited? The answer is simple — no one wants to invest being blind-folded (do you?). Blockchain technology is like a game, and once you decided to play, better play it safe!

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