How secure are smart contracts?

Securing smart contracts

Smart contract security technically works via the same concepts as the security of any software. Coding, testing, insuring. Specialized it security insurances exist and due to the young crypto market, smart contract failure insurance companies only emerge.

Writing secure code: The very first step of a secure application starts from within – The code itself. If the code is not created with best programming practices, it widens the attack surface of a potential attacker. Especially if it’s accessible on the internet (like smart contracts). Ethereum knows this and has published guidelines, which assist to create smart contracts securely.

Testing the code: Code tests are another piece of the puzzle. They are essential for secure software. Here, the runtime execution is tested. This can be done on your own, but it’s best to consider experienced companies like CertiK.

Insuring the code: This is a quite interesting angle to smart contracts – Smart contract failure insurances. An upcoming solution is Bridgemutual. They could have covered the previously mentioned harvest finance hack, according to their pitchdeck. Insurances are known to be used in various areas like health, automobiles or work. Clients get insured to have a level of safety about their time spent in those areas. With smart contract use rising, smart contract failure insurances may become more important – Especially for companies with larger pockets.

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