Audit Protocols

Definition ∞ Audit protocols are standardized procedures and guidelines used to systematically examine the security, functionality, and compliance of smart contracts, blockchain networks, or digital asset projects. These structured reviews aim to identify vulnerabilities, verify adherence to specifications, and ensure the overall integrity of a system. They provide a critical layer of scrutiny to mitigate risks in decentralized environments.
Context ∞ The necessity for robust audit protocols has intensified with the expansion of decentralized applications and the substantial value locked within DeFi. Public reporting of audit outcomes significantly influences investor confidence and the market perception of new digital assets. News often covers major audit findings or the absence of audits, impacting the perceived trustworthiness and security of various crypto projects.