If you’re developing a decentralized application (dApp), you’re undoubtedly aware of the significance of security.  Whether you’re a developer, a company owner, or someone new to the crypto industry, ensuring that your dApp runs safely is critical.  In the fast-paced world of blockchain, even minor errors may cost millions. 

Many recent Web3 breaches weren’t due to smart contract vulnerabilities—they were Web2 infrastructure failures like the Bybit Hack. One of the largest crypto exchange breaches happened because of a Web2 infrastructure flaw, not a smart contract issue. Attackers exploited a weakness in their Web2 security, exposing sensitive user data. This incident proved that even centralized Web3 businesses need comprehensive security across all layers.

If Web3 companies don’t secure their Web2 components, hackers don’t need to hack the blockchain—they’ll just exploit the underlying infrastructure instead. That is why verifying both your smart contracts and infrastructure is absolutely necessary.  But why would you need both?

Let us break it down.

Smart Contracts: The Backbone of Your dApp
Smart contracts are the digital agreements that enable your dApp.  These are the codes that carry out the terms of a transaction when specific criteria are satisfied.  For example, in a decentralized finance (DeFi) software, the smart contract guarantees that when a user deposits bitcoin, it is securely held in a pool and released when the requirements are met.

However, despite its dependability, smart contracts are far from impervious.  In fact, because they are frequently immovable once deployed, vulnerabilities can have disastrous repercussions.

What could go wrong?

• Logic flaws: A defect in the code might allow an attacker to change the contract’s logic in their favor.
• Reentrancy attacks: This was the fault that resulted in the infamous DAO breach of 2016, which stole millions of dollars in Ether.
• Unintended exploits: Even if the contract performs as expected in 99% of circumstances, unexpected inputs or scenarios may exploit flaws, jeopardizing both money and reputation.

Here’s where smart contract auditing comes in.  Auditing entails analyzing the smart contract’s code for any flaws and verifying that everything is secure before it goes live.  It’s like launching a preemptive strike to safeguard your users—and your reputation.

Infrastructure: The Unsung Hero
While smart contracts are frequently in the limelight, your infrastructure is as vital and requires care. Consider the infrastructure to be the backbone of your dApp—everything that maintains the smart contracts working properly in the real world.

A dApp’s infrastructure typically includes:

• Oracles: These are the systems that transfer off-chain data (such as price feeds and weather data) to the blockchain. If your oracle is corrupted or inefficient, inaccurate information may flow into your smart contract, resulting in unexpected or harmful effects.
• Node networks are the servers or nodes that validate and transmit transactions. If these nodes are hacked or not sufficiently decentralized, they provide single points of failure, putting your dApp at danger of outage or manipulation.
• APIs and third-party services: Many dApps rely on other services to perform certain functionality. Vulnerabilities in these third-party systems might allow hackers to access your dApp.

What could go wrong with infrastructure?

• Single point of failure: If your infrastructure isn’t decentralized or fails to fulfill redundancy standards, your entire system might go down, harming the reliability of your dApp.
• Security breaches:  Poorly protected APIs or backend systems might lead to breaches that jeopardize critical user data or cash.
• Scalability issues: As your dApp expands, your infrastructure must be able to accommodate the additional load without fail.  Poor scalability may result in performance deterioration and breakdowns during peak traffic periods.

That’s why infrastructure audits are just as important as smart contract audits. An infrastructure audit reviews your entire dApp architecture—from servers to data sources—to ensure that it’s as secure and scalable as possible.

Why Both Audits Matter

1. Security is Multi-Layered
When you think of dApp security, imagine a fortress.  The smart contract functions as the fortress’s gateway, while the infrastructure consists of walls, guards, and watchtowers.  Both must be strengthened in order for the system to function safely.  If you neglect one, the entire system becomes susceptible.

2. Mitigating Risks from Multiple Angles
A smart contract audit will identify flaws in the contract itself, but it will not tell you if your infrastructure is subject to DDoS assaults or if your Oracles may be manipulated.  Similarly, infrastructure audits will not identify significant problems in the contract’s logic.  Both audits provide a complete picture of the security landscape, allowing you to reduce threats from all angles.

3. Trust and Credibility
A dApp that has gone through both smart contract and infrastructure audits exhibits due diligence to users and investors.  It clearly communicates that you prioritize security and are dedicated to protecting their data and finances.  This can help to develop confidence and reputation in the cryptocurrency market.

4. Avoiding Costly Mistakes
The world of decentralized apps is still in its early stages, and while blockchain is marketed as “secure by design,” it is only as secure as the programming and architecture you create.  Failure to undertake thorough audits can result in catastrophic losses, whether from hackers, vulnerabilities, or performance issues.  Consider the audit to be your insurance policy, ensuring that your dApp can survive hostile attacks as well as unanticipated complications.

The Bottom Line
In the fast-paced, ever-changing world of blockchain technology, your dApp’s success is determined by how safe and trustworthy it is. Auditing both the smart contract and the infrastructure is the most effective approach to verify that your platform is secure. Smart contract audits focus on code security, whereas infrastructure audits safeguard the environment in which your dApp runs. Together, they constitute a comprehensive security structure that assures your users can trust your dApp, whether they’re sending money or engaging with your platform.

So, if you want your dApp to succeed and thrive in the competitive crypto space, don’t skimp on audits. It might just be the best decision you make.