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BSC Token Audit: A Complete Guide

Cyberscope Team
December 12, 2022
BSC Token Audit: A Complete Guide

Introduction

Token contracts are the more common type of blockchain contract nowadays. Everyone wants to create their own cryptocurrency and be the next popular token that the crypto community will go crazy over. Having a smart contract for your token is only one half of the equation since you also need to ensure that the contract is safe to use by you and the investors.

In this article, we will go over the most popular kind of token, the BSC-based one, and how it is important to get a BSC token audit to check the security and functionality of the project.

What is a BSC Token

BSC stands for Binance Smart Chain. It is the chain created by Binance, that also uses its native token, the BNB. A BSC token is a token created on the Binance chain since this chain is currently the most preferred one among new projects.

The Binance Smart Chain is based on Ethereum, so by being EVM-compatible, it gives developers the opportunity to create or migrate DApps, tools, and other components without experiencing any obstacles along the way.

The average transaction fees are 5 Gwei on BSC compared to 40 Gwei on Ethereum. This means it’s 8x cheaper to run a dApp on BSC.

At the time of writing, Binance smart chain is one of the world’s fastest blockchains. BSC is well known for its lightning-fast transactions, with blocks made every 3 seconds. Ethereum on the other hand takes 13 seconds to create a block.

As one of the most popular exchanges, BSC’s credibility runs across all its platforms. On top of that, the exchange vets every validator on the network and that ensures that on-chain development is both secure and reliable.

By utilizing the strengths of BSC and its native token, projects enjoy the chain’s transaction speed, low fees, and popularity. This is a great starting point for new projects since it provides a strong foundation that they can build on, for their own token.

What is an audit?
What is an audit?

What is an audit

Smart contracts (also known as blockchain contracts) are self-executing contracts with the terms of an agreement between buyer and seller written into lines of code. The code is stored, distributed, and replicated on a blockchain network.

A smart contract audit is a full review of a smart contract’s source code that checks for vulnerabilities, optimization issues, and any kind of defects that might disrupt the contract’s intended functionality. In the end, you get a detailed report containing all findings along with recommended fixes by the engineers that audited the code.

The audit report is an important aspect of the smart contract creation process. The developer will use it as a way to check for vulnerabilities in their code, which external actors could exploit. The audit report also offers investors and users of a contract reassurance that the contract behaves as expected, which enables them to safely interact with it.

Why is it important to audit a BSC Token

As with any smart contract, BSC Tokens are subject to vulnerabilities. They can be exploited if not programmed correctly and can suffer from operational issues that can prove devastating for a project. Especially new projects that aim to take over the industry and become a reference point for future entrepreneurs.

By getting a BSC token audit you can get information on the integrity of the smart contract and find out if there are any issues that should be addressed. The report also includes recommendations on possible fixes for each finding. This includes security, performance, or business logic findings.

In recent months, there have been many cybersecurity attacks that resulted in huge sums of money being lost. In 2022 alone, more than $3 billion were stolen according to recent reports. These could have been prevented if the contracts were properly developed and underwent a thorough audit process. There are also cases of severe contract malfunctions which, while not resulting in direct loss of funds, make investors abandon the project to protect their assets. In such cases, the project’s integrity (and trust) takes a hit, making it less likely to be a long-term success.

The process of auditing a BSC Token

There are different ways to audit a BSC Token, the most common being manual and automatic audits.

Most audit providers choose the automatic auditing approach for this service. The source code of the BSC Token smart contract is analyzed by AI tools, checking it against the most common and known issues. It gives a well-rounded coverage of security vulnerabilities and performance concerns. One of the downsides of such methods is that, by being an automated process, it cannot check for well-hidden threats that could be part of the code. This could be accounted to malicious contract devs or bad programming. It is also unable to discover potential business logic concerns.

Even though getting a BSC token audit with the help of an automated tool yields faster results, there are only so many things that an AI can identify. As contracts get more complex and include interactions with other contracts or wallet addresses, the value of an automated check decreases.

The manual audit on the other hand, while more time-consuming, it is considered to be the better approach. Each line of the smart contract is carefully examined to account for security vulnerabilities, performance issues as well as faults in business logic. More sophisticated manual audits include other tests as well, like unit tests. Unit tests are for checking the contract’s behaviour in different scenarios and edge cases. This can prove invaluable, especially for large-scale projects.

Leading cybersecurity companies in the crypto space utilize both automatic and manual methods. This is to ensure that everything is checked and the highest possible quality of audit is delivered as an end result.

Why choose Cyberscope

Cyberscope is one of the leading audit companies in the crypto space. With more than 1000+ clients, its brand name has become recognizable and sought-after in the space.

They are partners with all major launchpads, that BSC token owners can use to launch their projects and get the related badges. Furthermore, their recent partnerships like the Polygon Village program and the RadRugs are proof of how Cyberscope is the go-to cybersecurity specialist for smart contract audits. Their very own automated contract analysis tool, Cyberscan is being used in the GeckoTerminal platform, as a means to help potential investors be able to identify issues in the smart contract of projects they are researching.

Conclusion

A BSC token audit is the most important step for any project. By auditing your token’s contract you secure your project and provide investors with the safety that they are looking for. It is also important to consider launchpad badges.

Launchpads introduced various badges, to give investors a straightforward way to identify projects that have completed various milestones. The most common ones are the audit and the KYC badges. Investors are on the lookout for projects that have these badges, as they add to the project’s security and credibility. These can be obtained by getting each related service from verified providers of each launchpad platform. So if you are planning to use a launchpad for the presale of your BSC token, you can get both your BSC token audit and related badge, by going with a verified provider.

This article has hopefully given you a better understanding of what a BSC Token is and why it is important to invest in an audit. For any inquiries on auditing your smart contract, you can reach out to us at [email protected].

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