What’s an audit? Why the crypto world desperately need it?

An audit is a set of verifications or checks about a complex situation that need to be deepened or anyhow clarified. In the IT this is a process that double checks a software coding with the clear target to find possible bugs or violations of safety before the implementation. Within the crypto segment, audits are developed in relation to all projects and structures: ICO, IEO, blockchains, Smart contracts or any other new development.

Confidence.cr conduct in-depth studies on the side of Founders, that need to have neutral analysis on their projects to present them to investors audiences, in favor of the same investors, creating a paperwork that allow to identify any critical issues. Once adjusted or highlighted, investors will know what implementations have been done on one side – assessing an improvement of the project – or, on the other side, what are the gaps to close.

A crypto asset audit is the process and procedures package that will analyze qualitatively and quantitatively the project and his efficiency, from smart contract, to the governance until the use-case.

Naturally the level of analysis can change according to expressed requirements: for instance the company needs to introduce her pitch to international investors, it could be helpful an in- depth study of the crypto asset that could require weeks; the context changes if the requirement is to inform better all users, including aspects of the project in a single paper, keeping the fair view that a third party consultant can apply.

Within the important details to check, Confidence looks to:

● Study of white paper/yellow paper;
● Token: function and utility;
● Tokenomics;
● Emission method;
● How the token will be distributed and how long;
● Who are the developers;
● About the community;
● Value generation of the project;
● Scaleability and success rate;
● The whole project and its functioning process

They can change as the requirement changes: the checks done for a full blockchain cannot be the same of an ICO: easy to imagine.

In any case, the audit activity – how it is considered in Confidence – is a process that allow to us to run all the studies, without opinions. The way up to a good Audit goes through the cooperation between the founders, that have to be checked exactly to transmit sincerity and good intentions: long story short, Confidence offers all the needed info to avoid scams, which is and remain always the first target.

At this stage the Audit paperwork will have different releases: from the first that allow to identify mistakes, missing info, etc a cooperative process starts between auditors and developers aiming to solve the critical gaps identified.

This continuous improvement approach create trust around the project and the governance, assuring the community with the final public document, including all the info needed to evaluate the quality of the operation.