Quantstamp Inc. is developing a protocol that audits smart contracts using formal verification in order to find bugs before contracts are published to the blockchain. Quantstamp developers seek to secure and verify audits using a distributed network of nodes, similar to how an Ethereum node secures and validates a transaction. The Quantstamp protocol aims to be a scalable and cost-effective solution to the smart contract crisis.
Quantstamp aims to solve the smart contract security crisis. Well over $250 million dollars worth of Ether were either locked or stolen from the Ethereum network due to bugs in smart contracts. Currently, smart contract creators do not have a scalable, cost-effective way to enhance the quality of their code.
Quantstamp aims to create protocol that can automate the auditing process and enhance the quality of smart contracts on the Ethereum network because it’s one major problem present before Ethereum is ready for mainstream adoption.
Quantstamp aims to develop a protocol that can audit any smart contract from any blockchain. Quantstamp is currently focusing on Ethereum smart contracts but Quantstamp’s long term vision is to be protocol agnostic.
Richard Ma, Quantstamp's CEO, experienced the problem firsthand after his funds were stolen during the DAO hack. The DAO or, Decentralized Autonomous Organization, was meant to be a vehicle that allowed the Ethereum community to democratically improve the Ethereum ecosystem by collectively funding promising projects.
The DAO was unable to achieve its vision because a hacker exploited a bug in the DAO smart contract and stole 3.6 million Ether.
Other auditing companies only perform manual audits. Quantstamp performs manual audits and also is developing the Quantstamp protocol. The difference is quite profound because Quantstamp is attempting to develop a protocol that is automated, scalable and without the need of a trusted 3rd party by reducing the costs of auditing smart contracts to make it accessible for the masses.
Quantstamp developers seek to secure and verify audits using a distributed network of nodes, similar to how an Ethereum node secures and validates a transaction. If one node attempts to forge an audit, the intended protocol will detect this forgery.
By automating audits, the intended protocol will be able to handle audits much faster than a centralized manual auditing company.