Security Auditing

Definition ∞ Security Auditing involves a systematic examination of a system’s code, architecture, and operational procedures to identify vulnerabilities and weaknesses that could be exploited by malicious actors. In the digital asset sector, this is crucial for smart contracts, blockchain protocols, and decentralized applications to prevent hacks and financial losses. Independent security firms often conduct these assessments.
Context ∞ News frequently reports on the outcomes of security audits for new DeFi protocols, NFT projects, and blockchain updates, as these reports significantly influence investor confidence and project credibility. The demand for skilled security auditors continues to grow due to the high stakes involved in digital asset security. Regular auditing is considered a best practice, yet exploits still occur, highlighting the ongoing challenge of achieving absolute system integrity.