What Are Smart Contracts and How to Verify Them Before Signing?

Everyone has long been accustomed to the terms ‘cryptocurrency’ and ‘blockchain.’ Some have managed to create an investment portfolio on this basis or conclude profitable deals. Others are hardly familiar with the very concept of blockchain. But the progressive use of new technologies also generates new needs. Over time, the Ethereum platform appeared for creating programs and launching them based on the blockchain using so-called smart contracts. It has greatly simplified the conduct of transactions in the modern world.

What Is a Smart Contract?

A smart contract is created to automatically perform a certain sequence of actions according to predefined conditions. The implementation of this algorithm allows you to carry out transactions that are complex and important for two or more parties without the participation of intermediaries or any risks. However, the parties do not always succeed in excluding them completely, which is confirmed by the presence of precedents. For this reason, partner parties, before putting electronic digital signatures, turn to smart contract auditing services to ensure the accuracy of the algorithm and guarantee that the transaction will be completed.

In a sense, services such as Hacken are designed to act as a lawyer who confirms that all the terms of the contract meet the expectations of the parties, and the smart contract algorithm (which is essentially a program) will be executed.

Checking the Ethereum Smart Contract before Signing

Smart transactions imply security and impeccable compliance with all important conditions. But if everything is so simple and secure, why audits using tools like Hacken are necessary?

The thing is that any Ethereum project is still a program, and eliminating risks before signing is a correct decision, especially if confidential information or valuable assets become the subject of the contract. Early audit eliminates malicious or accidental risks to participants. After a detailed audit and confirmation of the honesty and transparency of the program, partners can safely conclude a deal, knowing that they can trust all the provisions of the contract.

Mathematical and computer algorithms embedded in the program cannot be seen with the naked eye without the necessary tools or experience at hand. But Hacken helps check the purity of the smart contract and the absence of risks. If vulnerabilities are found, recommendations for their elimination will follow, and you will be able to bring the matter to the end, avoiding possible pitfalls.