The smart contract audit may cost near $10000 to $70000. How? We have explained this in detail down the article.
The digital world lacks the trust that needs to be established between two parties before doing any transaction in the decentralization world.
Smart contracts have become the source to initiate trust-building and make digital transactions possible. For those who don’t know, smart contracts are agreements between two parties including all the terms and conditions on which both the parties in trade have agreed. Smart contract audit companies need smart contracts to perform any kind of business in the decentralized world. And not all companies develop their smart contract on their own, they take help from outsourcing services. Which takes this guide to the question, what is the cost of developing a smart contract?
That’s what the main idea of this guide is, this guide will explore everything about smart contracts including the smart contract cost, so stay tuned and keep reading the guide.
- The cost of a smart contract audit cost estimated between $10K and $20K.
- For enterprise blockchain projects, the average cost of a smart contract audit may cost you $70K or more.
There are three types of smart contract costs to discuss
- Smart Legal Contracts
- Decentralized Autonomous Organizations
- Application Logic Contracts.
Smart Contracts Explained
Smart contracts exist as non-mutable entities on the blockchain. No one can alter the smart contracts. And in this case, if someone tries to do so,
it would need exceptional computing power to override the entire network which is impossible for everyone on the earth to achieve.
Introduced by Nick Szabo in 1994, smart contracts work as a protocol to form a digital agreement for the transaction. It is a kind of contract that peers can use to base a valid trade on the decentralized world. Once formed, the contracts digital facilitate, authorize, and enforce negotiations. Based on the terms included in the contract and the time taken to form the contract, companies can decide on the smart contract fees. From small to intermediate and intermediate to large, companies can willingly pay any cost for the smart contracts to avail their offerings. But, what are the offerings of smart contracts? Let’s find out.
Offering Of The Smart Contracts
Smart contracts have become the backbone of blockchain technology. And here are the features of the smart contracts that help the blockchain to be the technology it is expected to be.
Smart contracts become secure because they have a permanent space on blockchains and only the contract’s participants can access it. no one can change them, not even the participants after the creator have stored the contract on the blockchain. The original contract must be deleted to change the contract.
Anyone can view the stored smart contracts on the blockchain, and learn about their details, including participants, the contract’s agenda, the smart contract’s terms, and implications.
Smart contracts execute operations whenever the participant meets the conditions agreed in the smart contract. All it needs is the smart contract code to include the performing parties and enter the conditions.
Execution in Real-Time-
Smart contracts carry out real-time transactions, which means that when participants reach the necessary conditions in the contract, the changes are carried out instantly across all participating computers.
The Importance Of The Smart Contracts
A smart contract is a computer code-based agreement between two people. And because they are stored on a public database and cannot be changed, businesses can use these contracts to form a secure, transparent, and workable relationship with the customers on the blockchain. Smart contracts process transactions through the blockchain, which means no third party becomes part of the transactions ever.
Due to features like decentralized and generally transparent, smart contracts promise increased commercial efficiency, lower money transfer and legal expenses, and anonymous transacting. The business community continues to research the use of blockchain technology for several commercial purposes.
How Much Can The Smart Contract Cost?
Smart contracts make it extremely simple to reach an unbreakable arrangement with predefined rules. And because of that, developing a smart contract becomes an expensive activity, with prices ranging from 6,000+ US dollars for a simple contract to anywhere of 40,000 + US dollars for a complicated one.
Many businesses are diving into the new technology for a variety of reasons, hoping to benefit from the adaptation of blockchain technology to meet their specific needs and provide better services to their customers.
This revolution leads to the development of smart contracts established for large organizations and requiring a specific scope for development, the price can reach $100,000 + US dollars. This price does not include the implementation of smart contract audit cost and transaction cost so the final cost of work can reach higher prices.
Smart contract transaction costs
When deciding on the cost of a smart contract the cost of transactions is important. In some cases, smart contracts may raise the cost more than traditional contracts As Ethereum continues to struggle with secure data aggregation implementation, network fees stay high, impacting t trade expenses.
Smart contracts have an efficient design to reduce the need for third-party involvement. However, the absence of an external adaptation mechanism may reduce the efficiency of smart contracts. Plus, an external enforcer can sometimes solve problems with more flexibility and efficiency making the transaction cost even higher. Besides that, smart contracts and their transactions have a binary nature. They take much more computer work to translate into compute code, which adds up to the net cost turning it even higher.
Along with the transaction development of the smart contracts even include smart contract auditing. Smart contract audit price is an important consideration that everyone needs to know before deciding to build a smart contract. Here is what smart contract auditing is all about.
Understanding The Smart Contract Auditing
Auditing is the process of analyzing the code to identify any flaws or vulnerabilities in smart contracts. Smart code works with the help of a pairing of manual and automated tools, as well as methods designed to identify and model the exploitation of vulnerabilities.
Smart code auditing tends to become essential before deploying a smart contract because once written, no one can change it. If not properly audited, smart contracts expose the involved parties to risks such as private data loss and data theft.
So the main main reasons for implementing a smart contract security audit are better code optimization, enhanced performance, secure wallet, and prevention from hacking attacks.
Once achieved successfully smart contract auditing helps the companies with
- Decentralized applications products
- Build trust with investors, participants, stakeholders, and others
Smart Contract Audit Cost
The cost of smart contract audits depends on the complexity of the code. And depending on that, on average, companies charge between $5,000 and $15,000, but the cost can reach much higher in some cases.
As a result, the auditing firm produces a report outlining potential issues with the code and making additional recommendations to improve its security. In addition, the smart contract experts examine contract dynamic behavior that reflects modern security patterns.
As, the costs of developing, deploying, and supporting smart contracts can quickly become prohibitively expensive, putting a halt to blockchain adoption. However, potential bugs in the code may result in even higher smart contract audit cost, which is why smart contract auditing is strongly regarded regardless of the type of smart contract.
Benefits Of Smart Contract Auditing
Let’s know some of the advantages of smart contract auditing that drive companies to spend thousands of dollars.
- Prevention From Hacking Attacks- Smart contracts can aid in companies preventing potential security breaches. Prevention always tops the list when facing the consequences later. One small error can cause irreversible damage, and while conducting routine smart contract audits does not guarantee complete protection, it does significantly reduce the risk of an attack. Here is a popular example of the prevention preference DAO hack case, which you may be familiar with. The company lost 3.6 million Ether as a result of a vulnerability in their smart contract code audit. So, when it comes to a company’s security, being proactive is essential.
- To Prove Company’s Authenticity- Clients value dependability, and trust. A company can demonstrate its trustworthiness by demonstrating that they care about protecting its clients’ private data and finances from attackers. Having a smart contract code audit will help companies both retain current clients and attract new ones. Because the world faces so many scams these days, having a smart contract code audit will help companies both retain current clients and attract new ones. For example, security agencies arrested Centra Tech’s owners, on charges of fraud. The company lied about its products and even impersonated team members to fool investors. which led Centra Tech to collect $60 million from its investors.
- Ensure Functionality Of The Smart Contract- Ensuring the proper functionalities of smart contracts should be the priority of the companies. Even the smallest bug can have catastrophic consequences and damages. Unintentional code errors can occur at any stage of the smart contract development process. Here is another example. Bithumb, a South Korean cryptocurrency exchange, suffered a $31.5 million loss due to a security breach. A timely smart contract code audit helps to detect potential vulnerabilities ahead of time.
- Build A Brand Reputation- In February 2018, the GitHub platform was able to withstand the largest DDoS attack ever. And the incident impacted the company’s whole reputation. So, preparing for potential hacking incidents and taking cybersecurity seriously is critical to preserving a company’s reputation in the long run.
In some cases, the only thing that can be recovered is one’s reputation. Is it therefore worthwhile to take the risk? A simple smart contract auditing procedure could save a company’s reputation and client loyalty, which is sometimes even more important.
- Safeguard customers- Any privacy can harm a customer in a variety of ways, particularly if vulnerable data is stolen. Because a company exists solely based on its customers, safeguarding their data to make sure their safety should be the top priority. As a result, a smart contract audit will assist a company in preventing its clients from losing money or personal information. For example, a weakness in Equifax exposed sensitive data from roughly half of the US population.
Companies To Offer Smart Contract Services
After the auditing now let’s know the top companies that offer exceptional smart contract services.
With 6 years of experience, Unicsoft is a top smart contract company in the United States that specializes in AI and Blockchain. The company’s team is committed to assisting startups and businesses in achieving their objectives through balanced smart contracts. The company develops smart contracts that achieve the desired results while avoiding common pitfalls. The company offers both smart contract development and auditing. As a result, it has become all in one place for vendors across the world.
CertiK, founded in 2018 by Columbia and Yale professors, has become a blockchain security pioneer. It utilizes best-in-class formal verification and AI technology to safeguard and oversee blockchains, smart contracts, and Web3 apps. As mentioned before in the smart contract audit section Certik audit cost can vary on the complexity of the smart contract’s code. CertiK brings together exceptional talent by recruiting from the top universities and companies around the world.
Quytech is a trusted Smart Contract Development Services Provider Company with over 10 years of experience. The company collaborates with startups and enterprises to fine-tune the latest mobile strategies. They offer complete solutions in blockchain and AI technology. They offer smart contract development and aim to achieve r client expectations. Furthermore, their solutions have established industry-wide standards for quality, performance, and productivity. Along with blockchain, they have hands-on experience developing AI/ML, AR/VR enabled them to transform their services across technologies.
Solidity offers low-cost but comprehensive smart contract audits. Their smart contract auditors have extensive experience auditing tokens, NFTs, marketplaces, betting games, finance protocols, and more. To provide technical sector previous research identified to the project team, they use a combination of static analysis, automated tools, and a thorough manual review process. The length and complexity of the smart contracts determine the timeline for a Solidity audit price. For most audits, they offer a turnaround time of 2-14 days, though high complexity protocols may impact the time.
TCS is an award-winning provider of smart contract development services in India. The company’s developers excel in AR/VR, AI, machine learning, and blockchain. With custom digital solutions and smart contracts, the company helps its clients enhance their efficiency, safety, and service. The company specializes in all major blockchain platforms. And it seeks to deploy only the best solutions based on the most recent blockchain trends.
The smart contract takes one week to 2 months depending upon the project.
Ethereum smart contract audit cost is similar to enterprise smart contract audit which is near $70000.
Blockchain auditing companies charge between 5000 to 10000 US dollars to audit a simple token sale smart contract.
The solidity audit costs around $2000 to $5000. Again its depends upon the application size and complexity.
The certik auditing cost is less than ethereum smart contract. Certik smart contract auditing starts from $500.
How much does a smart contract audit cost? Solely depends on the complexity of the code, contract transaction cost, and audit cost. Irrespective of the cost whether high or low, smart contracts are essential in the decentralized world. So, it’s worth spending some money on them.