NEO, One of the world’s largest open-source community driven blockchain companies, joined hands with CertiK, a formal verification platform for Smart Contracts. The tie-up was made with the intent to boost the security of smart contracts used by NEO for tokenizing current assets.
CertiK’s decentralized ledger uses layer-based decomposition to scale its verification mechanism at a global level. It aims to mathematically demonstrate that smart contracts cannot be tampered with and are free of bugs, thus implying their credibility in trade, exchange, and business transactions.
The principal reason behind the partnership is quite apparent, as both the companies work towards a common goal: utilizing smart contracts to build a better, digital economy where smart contracts play an intermediary to break the trade barriers between digital and conventional assets market. In this regard, CertiK levels up with NEO by implementing a mathematically-governed protocol that NEO can use in its smart economy model to allow selling and purchasing of digital assets with a stronger and more reliable verification system.
The need, for what CertiK does, was realized when in early 2018, as per MIT Technology review, about 34200 out of 1 million Ethereum smart contracts were found vulnerable to bugs. The study was carried out in the wake of past incidents with Ethereum when over $50 million were hacked and stolen from an Ethereum-based DAO, and another time, when an Ethereum-based wallet service ‘Parity’ succumbed to a code bug and temporarily locked away $150 million worth of cryptocurrencies of wallet users.
In other words, the ratio of buggy smart contracts to a total number of smart contracts came out to be 3.42%, which suggested that the use of Ethereum smart contracts on a global scale may not be the best idea.
Apart from formal verification, CertiK is also set to come up with a dedicated ‘formal verification protocol’ to allow NEO blockchain to verify both digital identities and assets.
According to CoinMarketCap, NEO currently holds 13th rank among cryptocurrencies regarding market capitalization with over Rs. 122,250,393,848 and a 24-hour trading volume of Rs. 3,682,049,586.
The economic impact of this strategic alliance is expected to sophisticate the model of smart economy NEO aims to build. With smart contracts powered by a fool-proof verification system, NEO may become the next big revolution in the assets market, especially the real-estate sector, which has so far been skeptical of participating in the blockchain ecosystem due to the size and worth of assets.