Potential Security Threats In Smart Contracts & How To Tackle Them

Smart contracts are agreements between two or more parties stored securely inside a blockchain. Smart contract development services include creating & implementing immutable and self-executing computer codes that facilitate contracts without intermediates.

Like all other ground-breaking technology, blockchain has evolved from an idea to a market buzzword and now to a real business solution. Many giants have already started to incorporate blockchain into architected applications in their production technologies. 

Since there are more and more businesses are cultivating blockchain technology, one opportunity for innovation seems clear: Smart Contracts.

Smart contracts are the theoretical and technical contracts coded within the blockchain environment. These contracts govern the transactional agreements that are hosted on the blockchain network. In a blockchain network, a smart contract ensures the policies to execute an exchange of information are satisfied.

Few security threats in the smart contract:

Undoubtedly, smart contracts make the show run in the blockchain. So it is imperative to be strongly secure. But sometimes, those secured contracts can be exposed to a few vulnerabilities. 

Here are the few kinds of security threats that smart contracts are open to: 

  • Operational risks 

This threat occurs at the authorization feature level with bad network governance. This risk can cause modifying the functionality of assets, self-destructing functions, etc.

  • Implementation risks

This threat causes unintended smart contract behavior like unauthorized transfers.

  • Design risk 

If the default features are mishandled, there will be an intended execution of smart contracts. This can result in asynchronous transaction processing and untrusted control flow. 

How To Tackle The Security Issues Of Smart Contracts?

Here are a few ways to approach the security threats imposed on smart contracts.

  • Create the smart contracts with an ideal computing language 
  • Continuously audit the smart contracts to know if it is exposed to any threats
  • It is mandatory to follow the defined blockchain security checklist
  • Use the automated vulnerability scanner to keep an eye on the security attacks 
  • Use security audit tools to check the smart contracts and blockchain 
  • Identify the untrusted contract and mark them. 

Takeaway: 

Although Smart contract development services are much better than traditional contracts, some vulnerabilities might threaten security. Thus it is most important to adopt the best possible ways to tackle the security attacks.