Security Audit

Definition ∞ A security audit is a systematic evaluation of a digital asset protocol, smart contract, or platform to identify potential vulnerabilities and ensure adherence to security best practices. This process involves rigorous code review, penetration testing, and risk assessment by independent third-party experts. The objective is to detect and rectify security flaws before they can be exploited by malicious actors. Such audits are fundamental for safeguarding digital assets.
Context ∞ Security audits are a crucial component of risk management in the decentralized finance (DeFi) and broader cryptocurrency space, frequently reported on in industry news. Announcements of completed audits or identified vulnerabilities often influence investor confidence and the perceived safety of a project. The rigor and transparency of these audits are key factors for users evaluating the security posture of digital asset protocols.