An Introduction to the Security and Verification of Smart Contract
First of all, let’s sum up the term “Smart Contract” with one simple sentence: when certain requirements are met, it will automatically run the codes on the blockchain. Currently, the most common application is structured on Ethereum. Combining the tamper resistant and decentralized traits of the blockchain, once the contract requirements are met, the nodes will automatically execute the contract and synchronize the action on all blockchains. In other words, the operation of the Smart Contract cannot be modified or reverse by the interference of one individual, and there is no need to worry about disputes resulting from human factors. It is more efficient and has more enhanced security comparing to centralized management.
The Smart Contract is 100% Safe. Truth or Myth?
Are decentralized smart contract absolutely secured? A few former failures can prove this a lie:
In 2016, The DAO gave up 3.7 million ETH due to a hacker’s breach of the security loopholes in their smart contract. The lost was worth 75 million USD at its market value, even caused the ETH to split into two different blockchains: ETH and ETC.
In 2017, there was a chain of issues caused by security loopholes in Parity. The first case was 32 million USD stolen due to the loophole in the multi-signature contract. The second case, though having nothing to do with hacking, the loophole in the contract again cause more than 150 million USD to be frozen. These two major incidents in the crypto community prove that putting smart contracts on the chain does not make it 100% safe. So, what should the users do?
Third Party Verification is Not a Plus but a Must
According to Bitcoin.com, a five-member research team from the U.K and Singapore calculated the currently running Ethereum smart contracts and discovered that more than 3.4% of them might have loopholes. Around 4,905 ETH can be taken advantage of, which worth approximately 4.4 million USD. This research also reveals that having no history of being hacked does not guarantee the absolute security of a smart contract. Loopholes are all about whether they have been detected or verified, and the self-verification and testing by the founder are simply not enough. Due to the high transaction speed in the crypto environment, third-party verification is now a must for a qualified exchange to ensure security.
The Affirmation From SmartDec
Digital asset being hacked is a painful experience for the founder of JOYSO, which is also the reason JOYSO is established. JOYSO’s Smart Contract is approved and highly praised by the renowned Canadian IT technical company Smart Dec for providing better user experience and enhancing security. JOYSO believe that the only path to long-term development is through relentless self-discipline.
JOYSO Smart Contracts Security Analysis：
https://ropsten.joyso.io/SmartDec%20Joyso%20Security%20Audit.pdf
