smart contract audit

For five years in the crypto-space, Binance smart chain has been one of the largest exchange platforms along with being a popular platform for smart contract deployment. Indeed, low cost and high throughput are the reasons for quick acceptance; it comes with a catch. 

BSC is one of the most exploited platforms for smart contract vulnerabilities. Hence, it is essential to keep its security concerns on top. Therefore, a BSC audit is of utmost importance for smart contract security. 

Here are the seven most popular FAQs regarding the BSC audit. 

Let’s Begin! 

Q1: Why is BSC smart contract audit important?

Because of the immutable nature of blockchain, one cannot amend their code after deploying it on the mainnet. As a result, having your BSC smart contract audited before going live is critical.

Here are a few reasons why a BSC smart contract audit is essential. 

  • Increases investor confidence in your project.
  • Adds an extra layer of security to your smart contract.
  • Improves code functionality.
  • Provide safeguards against theft and hacking.

Q2: BNB vs. BSC vs. BNB Chain. What’s the difference between all these?

BSC is the layer-1 or base chain of the Binance network, which rebranded itself to the BNB chain. Here, BNB stands for Build and Build, and the rebranding was done to demonstrate a connection with Binance’s governance token, BNB.  

BNB chain constitutes of two parts:

  1. BNB beacon chain, earlier known as Binance chain
  2. BNB smart chain, previously called BSC. 

BNB smart chain is EVM-compatible. It is an independent blockchain that runs parallel to the BNB beacon chain or previously known Binance chain. These two are cross-chain compatible.

Q3: How much money have BSC smart contracts lost due to hacks?

In terms of smart contracts, BSC is the second most exploited network after Ethereum. This year alone accounts for $1.8bn worth of smart contract exploits, and BSC has a fair share in it. 

An investigation by Reuters suggests that Binance has been the victim of almost $2.35B worth of crypto hacks for five years into space. 

Q4: What are the possible Vulnerabilities in BSC Smart Contract?

BSC Smart contract flaws may pose a severe security risk and make them attractive targets for malicious cybercriminals.

Some of the vulnerabilities with BSC projects are as follows:

  • 51% attack  
  • Re-entrancy 
  • Gas limit issues 
  • Timestamp dependencies 
  • Front-running 
  • DDoS 
  • Flash loan attacks and more. 

Q5: How are Audits Conducted for a Smart Contract on BSC?

Auditing a BSC smart contract initiates with information gathering, followed by detailed analysis by auditors utilizing automated audit tools, and finally, reporting. Here is a detailed description of the BSC smart contract audit process. 

  1. Information Gathering

It clarifies the audit scope, expected business behavior, project goal, and architecture. Documents such as the business requirement document, the project’s whitepaper/yellow paper, the technical specification document, smart contract code via GitHub commits, and others must be accessible to auditors.

Read More: Smart Contract Audit: Expectations vs Reality

  1. Analysis of code and unit tests

At this stage, the auditor runs the developer’s unit test cases and scans the code for vulnerabilities. This is known as manual testing, though automated audit tools are usually deployed to ensure that the smart contract is verified quickly and thoroughly.

  1. Reporting

After completing the first round of detailed project analysis, the auditors conduct initial reporting, followed by final reporting after completing the second round of analysis.

Developers make the necessary changes based on the recommendations following the initial report. Following code refactoring, a final report is prepared.

Q6: How can I become a BSC validator?

BSC validators are blockchain nodes that process and approve BNB Chain transactions. They verify the validity and legitimacy of all transactions on the network. If a validator does not authorize a transaction, it will not be completed on BSC.

BNB Chain has 21 validators, re-selected every day based on the top 21 nodes meeting the required criteria for validation slots to be competitive.

Here are the steps to becoming a BSC validator:

  1. Install Fullnode and create an account representing a key pair.
  2. Collect testnet funds from Binance smart chain faucet. 
  3. Commence Fullnode as a validator on the BSC testnet, and run the following command. 

geth –config ./config.toml –datadir ./node -unlock {validator-address} –mine –allow-insecure-unlock  –rpcapi “eth,web3,miner,net,admin,personal,debug” –metrics

  1. Conduct cross-chain transfer from BNB to BSC to Binance chain.
  2. Stake your BNB tokens on Binance Chain, the top 21 most staked nodes to be selected as a validator set(everyday).

Q7:  What are the Security Concerns with BSC Smart Chain?

BSC was created as a substitute for high transaction fees and slow throughput on Ethereum. BSC’s consensus mechanism has only 21 validators confirming transactions using proof of stake. Although this led to low cost and faster transactions, it costs extreme centralization. Alongside the demerits of the Proof-of-stake consensus mechanism includes validators wielding enormous influence. Also, the difficulty associated with becoming a validator is the possible security risks associated with the BSC smart chain.

Wrapping Up

While the benefits of flexibility, cross-chain compatibility, and lower fees captivate the blockchain domain, Binance Smart Chain is still not the ideal network, associated with some inherent risks.

Hence, a BSC audit is a vital requirement to protect your smart contract from vulnerabilities. 

By Anurag Rathod

Anurag Rathod, as a blogger he used to spread all about app-based business, startup solution, on-demand business tips and ideas and so on.