Think twice, before you initiate toward ICO/STO as it can have many flaws which are being encountered in the smart contract that can leave it free to attack. On average, a smart contract is having more than 3 susceptibilities in the structure. These subjections are putting the company on risk for money loss and information loss.
To obtain capital for the growth of services, usually, start-up- an ICO/STO is a way for companies. With an ICO/STO, the provider publishes digital tokens by means of a decentralized network. They have a multinational nature, means, anyone with access to the internet can buy these digital tokens. The tokens are generally can be bought by cryptos such as bitcoin or ethereum, but also can be purchased in fiat.
Tokens differ boundless in their prototype and functions. They represent title to the service to be developed, which may be a gift or have no value. It may be also available that they share a platform or portion of the platform.
Security and data protection are two major factors for any business industry. A decentralized network is much likely to be used for committing any crime. Anonymity should be removed for secure transactions and preventing the data to be tampered. Some common flaws that ICOs are currently facing namely:
1. Smart Contract Deficiency
In ICO/STO, smart contract is the weak knot, as more than 65% contracts contain flaws or bugs that can lead to significant risk in the system. These bugs basically originate from the lack of experience of programmer or insufficient code testing or name a few.
2. Attack against ICO Co-ordinator
Out of three ICOs, one is found to have foible nature, that can allow the attacker to get into the network and perform malicious activities in the system. This can create a serious issue as the attacker can change the wallet address, or the web host or even ICO domain.
3. Web Applications Bugs
More than 50% of ICO projects are facing challenges, having flaws in their web application. The insecure data transfer, security involved in blockchain, implementation in the backend , disclosure of sensitive data and name a few, are some major problem being encountered in web application flaws.
4. Attacks Against Investors
ICO/STO project might have flaws that can lead to attacks against the investors. These attacks can be initiated by featuring them on social media, and even on the project domain.
According to EY- $3.7 billion raised in ICOs, and almost $400 million were stolen by the cyber attacks. Security breakdown is the main cause behind this happening creating a wave that questions the security of the company involved in the projects.
We at QuillAudits, looking forward to providing a devkit which will provide better implementation of security in blockchain space. In a decentralized network, SDK will going to be built on the top of Ethereum Blockchain. This deep-rooted foundation will provide higher quality security in the smart contract. This tool kit is being developed in a modular way that assures security at every level.
This monitoring tool will help the company doing ICO/STO by giving them access to monitor in different aspect like:
1. They can track the behavior of unauthorized calls in the smart contract.
2. They can even identify an abnormality in the functions of smart contract.
3. This will also help to create a trust relationship between the Investors and the organizer.
QuillAudits SDK will provide transparency to every transaction made on the network, to the admin panel as well as to the investors. By this tool, what we can monitor is :
1. Unexpected flaws in the contract.
2. Performance of smart contract within a network.
3. Transactions on a decentralized network.
This monitoring devkit is being essential in the current scenario as far as security is concerned in blockchain space. Millions of dollar will flow through this network so maintaining security is highly recommended, and this point should not be compromised. This tool will timely update you upon the suspicious activities that are being noticed through this monitoring tool. The need for this tool is highly recommended for:
2. Tokens Exchange Platform
This potential tool can really helpful for the investment sort of thing as this will also be running in investors server that can monitor the transaction that is being made. Any strive to change functions or any change in the contract could be denied and all parties will be informed directly.
Let say, Investor may or may not have any technical knowledge of the project(code specifically), so what this kit provides is, an investor will have access to the functions that are in solidity or in any other programming language. These functions are called accordingly in the backend, and whenever the different functions are called this QuillAudits SDK sends a warning message to the investor that some suspicious activities are being encountered.
Also, admin of smart contract can monitor his smart contracts(events) for popular bugs like Reentrancy, underflow/overflow, race conditions, transaction dependence, etc.
One of the significant features of blockchain is that it can help to interact between two parties without the need for a middleman. A smart contract does have the potential to handle assets worth millions of dollar. In the decentralized network, smart contract can be stored securely and accessed by all participants.
A smart contract is secure and much faster in a workflow that can offer ease and security in the monetary flow.
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Thanks for reading. Also, do check out our earlier blog posts.
At QuillHash, we understand the Potential of Blockchain and have a good team of developers who can develop any blockchain applications like Smart Contracts, dApps,Smart Coins, DeFi, DEX on the any Blockchain Platform like Ethereum, EOS and Hyperledger.
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