What Are CertiK Audits and Why Are Audits Essential to the Health of DeFi?
Learn about the importance of security for smart contract protocols and about CertiK, a leading smart contract auditing service.
Importance of Security for Smart Contracts in DeFi
Unlike centralized information systems that are secured by the companies providing them, smart contracts place trust in the code rather than corporate entities. Code that can handle billions of dollars of funds.
As a smart contract platform offering faster transaction times and a fraction of the fees compared to Ethereum, Binance Smart Chain has shown significant growth in 2021. It currently holds $9B+ worth of assets in its smart contracts — up from $1.2B+ on February 1.
That growth demands further security for the DeFi assets stored on-chain.
Since smart contracts are immutable and cannot be changed once they’re deployed, code security must be perfected before release. A single bug or a security vulnerability can either mishandle funds or give hackers opportunities to exploit the contract.
Obviously, such a situation is intolerable since that can mean a potential loss of millions (if not billions) of dollars.
CertiK Audits for Industry-Leading Security
CertiK is a blockchain security firm pioneering the use of cutting-edge Formal Verification technology on smart contracts and blockchain networks.
In the three years since inception, CertiK has conducted 220+ audits, audited 118k+ lines of code, securing $8.03B of value.
CertiK has secured top crypto exchanges Binance, OKEx, and Huobi. In fact, the Binance Accelerator Fund has a system of securing the top platforms it funds through CertiK audits.
What’s more, CertiK has serviced more than 100 top-shelf blockchains and DeFi protocols, including but not limited to Binance, Tera, Bancor, Shapeshift, and Blockstack.
Even the popular Binance Smart Chain DeFi protocol, PancakeSwap, has had its smart contracts audited by CertiK.
So, how does a CertiK audit actually work?
Certik Audits Under the Hood
If you were to proceed with an audit of your protocol on Binance Smart Chain, this is the technical procedure your smart contracts will go through:
You provide your smart contracts and the specification of their intended behaviors to CertiK.
Your smart contracts will undergo the mathematical method of ****formal verification through the CertiK BSC Security Oracle.
Experts with experience from Google, Microsoft, Oracle, and Facebook will then manually review your contract.
CertiK will provide you with an audit report classifying vulnerabilities, proposing solutions for them, and showcasing the mathematical proofs from the formal verification. Part of the bundle will also be a hashed CertiK Verification Badge that features a scannable QR code.
It’s worth noting that this entire process can take as little as 48 hours.
Binance Smart Chain Bridges the Gap Between DeFi and CeFi
Binance Smart Chain aims to benefit users with features of centralized finance, including futures, margins, savings, staking, and pooling, while simultaneously providing features of decentralized finance such as lending, automated market makers (AMMs), and yield farming.
With the BSC Accelerator Fund providing much-needed assistance to upcoming platforms wishing to share the mission of Binance Smart Chain, it’s no wonder we see such impressive growth.
Thankfully, CertiK is there to add a layer of much-needed security to the growth of the Binance Smart Chain DeFi ecosystem.