Why are security audits for smart contracts necessary?

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Why are smart contract security audits required?
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Why are security audits for smart contracts
necessary?

• Smart contract security audits can assist you in
  identifying any system vulnerabilities. It gives
  you the chance to correct these problems before
  someone wishing you harm does so and undoes what
  you have accomplished.
• With this new technology, though, it's possible
  that you're not clear what a smart contract audit
  is, why one is important, or whether you truly
  need one. Check out a few intriguing smartphone
  ideas for the near future.
• What is smart contract auditing?
• A "Smart Contract Audit" is a thorough and
  methodical examination of the code that a smart
  contract employs to interact with a
  cryptocurrency or blockchain. Finding defects,
  technical problems, and security flaws in the
  code is done using this technique. It enables
  experts in smart contract security audit to offer
  changes. Smart contract audits are frequently
  required since the majority of smart contracts
  deal with priceless commodities and financial
  assets.
• Smart contract audits cannot absolutely guarantee
  that the contract is free of defects or errors.
  It does, however, guarantee that the smart
  contract is safe following a technical expert's
  review.

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Cyber-attacks on Blockchain networks and smart
contracts

• Before they be used in actual attacks,
  vulnerabilities in the blockchain must be found
  and fixed by developers.
• The two fundamental tactics that hostile
  organisations utilise to carry out effective
  assaults are bait and response attacks. A
  complete grasp of Blockchain network smart
  contracts and related components, such as
  cross-chain and side-chain wallets, as well as
  familiarity with numerous protocols are required
  for the second, more complicated technique. The
  first tactic makes use of deceptive social
  engineering techniques, such persuading the
  victim to transmit cryptocurrency to the
  attacker.
• Because they handle or exchange substantial
  amounts of money, smart contracts become
  attractive targets for malicious cyber assaults.
  Significant sums of money can be stolen through
  simple programming flaws.
• Three prominent Blockchain assaults are listed
  below.

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Wormhole Bridge

• The Wormhole Bridge breach is now the
  second-largest attack against the cryptocurrency
  sector. Wormhole, a well-known link between the
  Ethereum and Solana chains, lost almost 320
  million as a result of the attack. Utilizing a
  bridge flaw, the attacker took 120,323 Ether, or
  XNUMX million dollars.
• The attacker created about 20,000 hours' worth of
  Ethereum on the Solana Blockchain, which was
  valued 325 million at the time of the hack. He
  did it by pretending to be a genuine signer on a
  deal without offering any guarantees.
• Finance CREAM
• The hacker took advantage of a flaw in Cream
  Finance's flash loan agreement to get Ethereum
  tokens valued about 130 million. Oracle Cream's
  methodology and technology for determining asset
  values have serious flaws.

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• Using the CREAM Finance platform's smart
  contracts' restrictions on price computation, the
  attacker changed the price of the pool of yUSD
  used as collateral, changing the 1 yUSD wager
  into 2.
• As a result, Cream Finance reports that the
  attacker's initial 1.5 million yUSD investment
  has increased by twofold. The hacker then
  leveraged a XNUMX billion profit to drain the
  project's overall liquidity by converting his
  yUSD investment at Cream Finance into 3 billion.
• Reverse Finance
• First, the attacker removed 901 ETH from Tornado
  Cash, the Ether Mixer. The attacker then used
  SushiSwap's liquidity pools for INV/WETH and
  INV/DOLA to convert them to INV. Both
  organisations utilised the price of Oracal
  Keep3r, which tracked the cost of INV, to
  increase the cost of INV. As a consequence, the
  value of Inverse Finance's INV increased, making
  it possible for the attacker to get a 15.6
  million INV-backed loan in ETH, WBTC, YFI, and
  DOLA.

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• Security evaluations of smart contracts are
  necessary for both DeFi and NFT
• As examples, a number of well-known projects that
  had financial disasters were used to highlight
  the pressing need for a comprehensive audit of
  smart contracts. Even if you carry out a smart
  contract audit, there is no guarantee that the
  smart contract will always be immune to attack.
  You can now see how NFT tokens operate to stop
  art theft the best manner possible.