Don’t create a perception of smart contracts as smart and merely a contract. It is one of the most essential features of blockchain development and refers to an automation application that operates on a decentralized network. Smart contracts in blockchain technology enable the transactions without the involvement of third parties, consume less time, provide swift results, and pose no cyber threats like conventional systems do.

It is known that there is no alteration of smart contracts in the blockchain. But, apart from all the possible benefits of such computer protocol, few security concerns arise since people, encapsulating the right to access the blockchain could view the smart contract codes.

Handling the concerns is of paramount importance in order to refrain fraudulent activities and financial losses.

So, let’s get to know about it.

  1. Penetration Testing

Penetration testing a.k.a pen test is not something which takes place once only. The practice of this activity should be continual. This process digs the issues related to security and discovers the possibility of unauthorized access. This type of testing captures the entire system for the inspection of threats and errors in case of misuse.

A key aspect to be observed is that this testing should be suitable for the organization size. Its key advantage is that it identifies the hazards in the network as well as at the organizational level. After detection of pitfalls, adjustments are made, and then testing is performed again unless and until the test results appear free of snags.                                               

  1.  Source Code Review

Reviewing source code is the step which should not be missed at all. To safeguard the smart contract security, source code review should be done before arranging smart contracts on the blockchain. A lot of flaws originate when code is written. This procedure is convenient, easy to handle, and is functioned to help eradicate the basic defects.

Through source code analysis, the presence of security controls is verified. It is ensured that the application will defend itself in the given scenario. The time spent in doing so differs with the programming language and application size. It is much better to be secure and safe and minimize the exploitation chances. 

  1. Security Audits

Another possible security measure is doing audits of smart contracts which eradicates the manipulation opportunity from the end of hackers. Since the self-execution aspect of smart contracts brings up challenges so security audits must be conducted. Don’t let your money at stake and run standards and protocols to enhance the protection of the system.

When it is guaranteed that the code is 100% safe, even then audit is mandatory because human error is still likely to emerge. Third parties manage the audits and guarantee the authentication of the present codes and refer the room for improvement.  After running contract vulnerability tests, the audit team must check how the contract would also respond to failure events. 

  1. Usage of Security Tools

To accomplish the flawless results in business requirements, additional automated tools are also used to cross-check the security bugs and vulnerabilities. Some of the renowned QA/testing tools include solidity-coverage, Manticore, K Framework, and Mythril, etc. The manticore tool is a dynamic security inspection tool that reinforces EVM support.

Talking about Mythril, this tool utilizes a symbolic mechanism engine laser Ethereum. Automated analysis of the smart contracts reviews the conditions minutely and affirms security patterns. 

Final Thought:
The above-mentioned guidelines will surely not allow you to put your assets at risk. After testing, automated tools, and audits, your custom software solution enabled with blockchain technology will be free of errors and without any room of susceptibility of attacks.