Smart contract security: Investigating vulnerabilities and developing methods for secure smart contract development

Abstract

Blockchain technology has transformed commercial transactions with its decentralized platform, transparency, and security. Self-executing contracts with coded terms are at the foundation of smart contracts, resulting in increased efficiency, lower operating costs, and greater transparency. Smart contracts offer tremendous benefits across businesses, but their immutability raises serious security risks. Contract code faults and vulnerabilities remain unmodifiable or erasable once published. This can pose irreparable problems, especially with financial or sensitive data. Transparency makes these contracts more vulnerable to manipulation by malicious actors. This study examines smart contract vulnerabilities, including reentrancy attacks, overflow and underflow issues, and unauthorized access. Smart contract creation involves specific risks and a full security framework. This framework reduces vulnerabilities with formal verification, automated analysis, and optimal coding practices. This research aims to improve smart contract security, reliability, and integrity. The study improves blockchain technology security and promotes its adoption across businesses, making smart contracts secure, efficient, and trustworthy.