Key Takeaways:
- Smart contract audits for Solana are deemed ineffective, creating risks for investors, analyst claims.
- Auditing providers charge higher fees on Solana compared to the market average.
- The lack of ongoing audits and accountability from auditors raises concerns.
- Furthermore, the number of developers in the Solana ecosystem has decreased compared to 2022.
YEREVAN (CoinChapter.com) — The Sleuth analyst J264G claims that smart contracts audits for Solana are ineffective and create dangers for investors who trust the system.
What are Smart Contract Audits Anyway?
For context, smart contract security audits in the crypto space are comprehensive reviews and evaluations of the code and functionalities of a smart contract to identify potential vulnerabilities, weaknesses, and security risks.
On the other hand, smart contracts are self-executing contracts with the terms of the agreement directly written into lines of code.
Solana Smart Contract Audits Aren’t Effective — J264G Argues
J264G states in the article that you can’t always “trust the code.” In particular, the analyst states that security audits that were conducted for Solana proved to be fruitless. Furthermore, the analyst brings six examples of hacks that happened on the Solana platform.
These hacks collectively amount to approximately $502 million in damages. Smart contract auditing providers generally charge between $5,000 and $15,000 per audit, but Solana’s case is more expensive at around $50,000-100,000.
The Ripples Of These Politics
J264G highlights the negative repercussions of such price politics. Firstly, these bizarre prices might scare off potential customers, who can find other companies that practice more price-friendly solutions.
Secondly, the analyst argues that when prices lack clarity, customers might lose trust as they might suspect a hidden profit-motivated agenda. And lastly, the overall bad price policy might create a bad experience for the customer.
The Criticism Of The Auditors Themselves
The Sleuth analyst also hurls some criticism on the audit providers. He states that most audits do their job on a “one-off” basis, meaning the project is not getting audited over time. This notion creates problems since crypto projects change in scope and vision over time.
Moreover, security auditors don’t take accountability if their clients fall victim to exploitation. In contrast, conventional IT projects often have service-level agreements that include remedies or penalties in case of issues.
However, the analyst takes into account that the smart contract might be faulty, and you can’t blame the auditors for everything.
Similarly, the auditors might overlook market dynamics or lack sufficient incentive to ensure constant watch over a project. In conclusion, the analyst collectively calls for improvements in auditing practices. In order to ensure greater transparency and trust within the Web3 ecosystem.
The Amount Of Solana Devs Decreased- According To Messari Research
If we look at the crypto research platform, Messari’s report on the state of Solana in the second quarter, we can find interesting details regarding our narrative. The report states that in 2022, more than 2,000 developers were on Solana, making it the most active ecosystem after Ethereum.
However, as of June 1, 2023, the total number of developers in the Solana ecosystem declined to 1,475. This number represents a decrease from the peak in 2022. However, it is important to note that this developer activity rate is still considerable overall.
