Why does Security Auditors play an important role in the cryptocurrency industry?
Smart contract auditors are experienced consultants that examine smart contract codes for vulnerabilities and to determine if the code has been compromised in any way. The auditors are essentially a group of cryptocurrency experts with a focus on blockchain. Auditing smart contracts isn’t easy. To keep your assets safe from hackers, you’ll need expertise and years of experience.
What are the benefits to hiring an independent Auditor?
You may need to audit your smart contract if you plan to start your own project. But, if you can audit the code yourself, why employ an outside auditor?
Here are some of the benefits of hiring a smart contract auditor:
They are highly qualified and will ensure the security of your funds.
Identifying any mistakes in the code and ensuring that the code is secure enough to transmit your payments.
To check for typographical issues and to authenticate your wallet address.
Identifying and removing bugs from the system.
Many consumers have lost a significant amount of money as a result of coding flaws, hacker extraction of private data, and infiltration. Before you select an auditor for your upcoming or existing project, you should conduct a background check. A good and professional auditor will assist you in understanding the procedure and ensuring the safety of your assets.
Will an audit prevent a flash loan attack?
It is important to note that a smart contract audit will not prevent a potential flash loan attacks, but experts in the field like RD Auditors can help to provide ways to mitigate these risks.
Let’s take a look at a recent flash loan attack involving PancakeBunny:
Using PancakeSwap, the exploiter staged (and exited) the attack. The hacker purposefully manipulated the price of USDT/BNB and Bunny/BNB by exploiting a difference in PCS pricing, gaining a large number of Bunny through the use of Flash Loans.
The exploiter dumped all of the Bunny in the market (Ethereum), causing the Bunny price to collapse. The exploiter then exited the attack by paying back the leftover BNB on PCS (having previously exploited the pricing differential).
This flash loan exploit cost $45 million in digital assets. According to a PancakeBunny tweet, attackers stole Binance’s token BNB before manipulating its local Tether (USDT) and BUNNY markets — before selling BUNNY and causing it to crash.
Despite stealing over $200 million in digital assets in total, PancakeBunny’s statement suggests those responsible only stole about 114,600 BNB ($45 million).
The remaining was apparently utilised to repay the loans that sponsored the transfer in the first place.
In conclusion, a security audit of blockchain development is essential, and it’s also a good idea to hire an auditor with a good reputation and a proven track record.