What is Chainsulting? Its role in making the DeFi industry more secure

What is Chainsulting? Its role in making the DeFi industry more secure
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The popularity of blockchain technology has opened new opportunities like decentralized finance (DeFi) applications governed by smart contracts. These protocols authorize decentralized networks by providing cutting edge innovative financial services to the masses. DeFi projects eliminate middlemen like banks hence enabling anyone to participate in economic activities, benefiting millions of unbanked people worldwide. Apart from the general public, investors find DeFi extremely attractive as it offers high-interest rate savings, unlike traditional financial institutions.

However, there is a setback; the colossal total volume locked (TVL) in DeFi raises several security concerns. Many users have lost millions of dollars to cybercriminals threatening potential investors looking forward to DeFi. Currently, DeFi lacks good-quality smart contract checks to prevent cybercriminals. Due to this loophole, cybercriminals have successfully targeted DeFi applications absorbing millions of crypto funds. With over 200 projects utilizing smart contracts and blockchain, there's a growth of bad actors constantly looking to infiltrate DeFi code. The most notable attack on DeFi occurred on November 19, 2021, when hackers found a loophole in Poly Network and stole $600M worth of digital assets. Again in December 2021, malicious actors targeted BadgerDAO, stealing over $120M in crypto.

Chainsulting

Chainsulting is a Germany based software development firm that brings superior security solutions to decentralized finance (DeFi) by providing comprehensive distributed ledger technology (DLT) solutions. The firm started working in 2017 as a blockchain consultant company.

Their services include smart contract audits, blockchain development and consulting. The firm focuses on providing services that ensure every blockchain project is secure; they are determined to solve the issues of continuous DeFi exploitation by hackers who deter investors from entering the crypto and blockchain economy.

Services provided by Chainsulting:

Smart contract audits

Blockchain architecture and development

dApp development

Providing consultation on digital assets and distributed ledger technology (DLT)

Security risk analysis

How does Chainsulting work?

  • The auditing process of Chainsulting includes the following steps
  • The auditor reviews the sources and specifications of the project, followed by a code review. This process helps in identifying potential vulnerabilities.
  • Auditors perform a test analysis to determine if the test cases cover the code, followed by an automated analysis. Through this process, auditors can analyze the amount of code working when the test cases are run.
  • Auditors review the code to enhance effectiveness, efficiency, security, clarity and control, comparing it with the industry standards.
  • At last, auditors release a list of recommendations with a compliance certificate. The list might include advice to authorize DeFi protocols to secure their codebase.

The firm uses real-time communication tools to connect with the project team and provide remedies accordingly. The team also provides consultancy to the token developers in applying necessary fixes. DeFi protocols usually interact with blockchain networks through smart contracts. Smart contracts replace third parties in a transaction, thus maintaining transparency. Thus Chainsulting has introduced an institutional smart contract auditing process that combines lengthy steps to provide 100% test coverage on all the DeFi projects. Through this reforming approach, decentralized protocols can conquer investors' trust, taking the crypto industry to greater heights.