Audit
A review of a project's smart contract code by security specialists looking for vulnerabilities.
✦ Key Insight
The absence of an audit is a strong negative signal, and the presence of one is a weak positive that requires reading.
✕ Common Misconceptions
Treating an auditor's logo as due diligence. Verify the report exists, is recent, and matches the deployed contract address.
Detailed Explanation
In Practice
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Wallet
Software or hardware that stores your private keys and lets you sign transactions.
Token
An asset created by a smart contract on an existing blockchain rather than being that blockchain's native currency.
Blockchain
A shared, append-only record of transactions maintained by many independent computers at once.
Transaction
A blockchain transaction is a signed or authorized instruction that changes blockchain state or transfers value when accepted by the network.