In a world powered by Web3 technology, there is no undo feature. Once transactions are executed on the blockchain through a smart contract, they cannot be reversed. Since the code of most smart contracts is publicly accessible (which also means hackers can inspect it), potential vulnerabilities become easier to discover and exploit. This makes Web3 platforms attractive targets for attackers.
Because these attacks happen frequently, Web3 companies often suffer significant financial losses, which makes smart contract audits a necessity rather than an optional step. An audit examines every line of a developer’s code to identify areas where a hacker could exploit a vulnerability or disrupt the contract’s logic, ensuring that the smart contract behaves exactly as intended for both developers and end-users.
Common vulnerabilities in smart contracts
The story of Web3 is full of examples showing the many times hackers were able to steal funds within minutes due to basic mistakes made while developing smart contracts.
Here are some common examples of risks:
- Reentrancy – allows an attacker to make repeated calls to a function while the first call is still running, enabling the attacker to withdraw assets multiple times.
- Improperly set permissions – if a user without appropriate permission (or even a user with permission) can execute important functions.
- Logic errors – there may be logic errors within the code, causing the smart contract to behave unexpectedly.
- Oracle manipulation – allowing for external data used by the smart contract to be spoofed or altered.
- Integer overflow/underflow – arithmetic mistakes that could result in unexpected values.
- Inefficient use of gas – inefficiently written code may result in the smart contract being unable to execute or having to use more gas than anticipated.
- Vulnerable integration with DeFi protocols – connecting to a potentially unreliable smart contract creates another point of vulnerability.
In what cases is a smart contract audit necessary?
Smart contract audits help you protect your project in advance, build a solid reputation, and give users confidence that their funds are safe. Below are the situations where having a smart contract audit becomes necessary, or even critical:
- Public launch of a Token or DeFi protocol – every public launch without a smart contract audit may become a target for hackers in the first few hours after launch..
- New releases or updates – since even one code change can lead to new Vulnerabilities in the project.
- Integrating with other protocols – an integration with a third-party contract adds a new point of entry for creating vulnerability. Attackers can use external contracts to attack the protocol.
- Working with total value locked – operating users’ funds locked in smart contracts means that by not having an audit of the smart contract, you are putting the user’s money at risk.
- When preparing to list – many exchanges, launchpads, and aggregators require that every project they list has been audited.
- Non-standard logic – the more uncommon and unusual a smart contract’s code is, the more opportunity to introduce mistakes into the smart contract, resulting in a vulnerability.
- Investors’ requirement – securing funding or partnerships may require you to demonstrate that your smart contract is completely audited.
If your project falls under at least one of these scenarios, it’s time to consider an audit.
What does a smart contract audit include?
A professional smart contract audit involves more than just quickly running through the code. An audit of a smart contract contains a comprehensive review of not only the technical aspects of the smart contract but also the architecture of the entire smart contract solution as a whole.
Typically, an audit contains:
- Manual code review – each line of code is reviewed and analyzed by hand to identify the logic and how permission may be granted, and how contracts may interact with each other.
- Static and dynamic analysis – tools that read the contract’s code will determine how it would behave if executed, whether executed or not, and identify possible vulnerabilities.
- Fuzzing – randomly providing unexpected inputs to functions to test the contract’s resilience to attacks.
- Formal verification – a proof by mathematicians that critical functions of a smart contract will perform exactly as intended by the developers.
- Attack modeling – a model or representation of a real-world attacker testing a smart contract.
- Architectural analysis – the examination of the overall logic and structural design of a smart contract, and how each module of the smart contract interacts with other modules.
- Final report – an audit report will identify all of the issues discovered during the audit process and provide the risks associated with the issues, as well as recommendations for resolving the issues.
Benefits provided by a smart contract audit
An audit is not only about technical security but also about strategic advantage. After completing a smart contract security review, a company gains several benefits.
Here are the three main ones:
- Asset protection. A proper audit protects your funds by catching security flaws before attackers can exploit them.
- Investor and partner trust. Having a report from an independent cybersecurity company confirms that the team cares about security.
- Minimization of reputational risks. A single hack can destroy trust built over years. An audit helps avoid this.
But the main advantage is confidence in your own product.
Who can you rely on to properly audit your smart contract?
It is best when smart contract security is reviewed by external experts – this ensures an independent assessment and a fresh perspective. When choosing a company to conduct an audit, pay attention to Web3 experience, case studies, report transparency, and a certified team.
The cybersecurity company Datami specializes in smart contract audits for Web3 projects. It has over 8 years of experience, has audited more than 680 contracts, and holds 26 international cybersecurity certificates.
Datami offers smart contract audits tailored to the client’s project, taking into account its logic, structure, and specifics. Modern testing methods are used in the process, and the results are delivered in a transparent report with practical recommendations.
You can learn more about the company and its services on the website: https://datami.ee/.
Conclusion – Audit of Smart Contracts
In the important area of Web3 and blockchain technology, having a professional smart contract audit is essential to protect against weaknesses that could cause serious financial problems and loss of trust. From finding small problems like reentrancy attacks and logic errors to thoroughly testing through manual checks, fuzzing, and formal verification, audits make sure your project’s code is strong, effective, and safe.
Skipping this critical step invites hackers to exploit public code, risking user funds, partnerships, and reputation—consequences that no developer can afford. By investing in independent audits from experienced firms, projects protect assets and demonstrate commitment to excellence, attracting investors and users alike. Ultimately, in an ecosystem where transactions are permanent, a thorough smart contract audit is not just recommended—it’s the foundation of sustainable success and innovation in decentralized finance and beyond. Prioritize security today for a resilient tomorrow.
