Coinbase Launches the Solidify Smart Contract Auditing Tool

The tool will vet and audit coins and tokens coming to Coinbase in an attempt to safely and securely grow the exchange.

By
John Tunney
on
June 25, 2021
Category:
Blockchain News

Coinbase Introduces Automated Auditing

Coinbase is looking to expedite their process of auditing coins/tokens to their platform with the introduction of Solidify.  Solidify is a tool to automate and scale Coinbase’s auditing process. The new auditing tool was announced via an official blog post on June 23rd.  The massive cryptocurrency exchange has been rapidly expanding. Part of said expansion means onboarding new coins and tokens for trading on their platform. As the exchange looks to offer more coins/tokens for trading, Coinbase’s in-house auditing process has been labor intensive and time consuming. 

Source

Coinbase always keeps their user base in mind, as Coinbase prior to Solidify would manually audit all the coin/token smart contracts listed on Coinbase. The platform has continually demonstrated their desire to ensure there are no weaknesses in their smart contract function.


Why the Need For Solidify

The goal of Solidify is to expedite Coinbase’s auditing process while maintaining their standard of high security. Coinbase has built this service to continue their mission of providing secure investment options for their base. The Solidify protocol hopes to prevent Coinbase’s user base from being exposed to coins or tokens that pose a potential risk. The blog post acknowledges that manually examining each smart contract for errors is not only time intensive but also prone to human error/oversight. 

It would seem the problem of auditing coins/tokens has grown substantially in size,  as new coins and tokens hit the crypto sphere at a voracious rate. Coinbase has struggled with the large influx of coins/tokens to audit, thus the need for a more efficient auditing process.

The time for Solidify seemingly couldn’t have come at a better time as exploits, such as the recent attack on Eleven Finance, have become an unnervingly common occurrence. 


How Solidify Works

Solidify on Coinbase looks to maintain their level of scrutiny when auditing protocols by relying on an algorithm that leverages a smart contract database with a pattern-matching engine. Solidify can then search through a protocol’s smart contracts, identifying the smart contract’s weaknesses and strengths. Solidify then rates the protocol’s collection of smart contacts for safety and provides a detailed report of where potential vectors of exploit may exist.

Solidify also has the ability to recognize when the program itself needs help/clarity. The new Coinbase tool can recognize when there is a unique function it does not know and will signal to the Coinbase team that additional review is needed.

The Coinbase blog detailed that Solidify has 6,000 unique signatures which the program leverages to better carry out the function of identifying risks and smart contract weaknesses. What once took days of work to manually comb through a protocol's smart contracts can now be done in minutes thanks to Solidify. The program continues to grow in capability as Coinbase developers constantly add to the Solidify database, augmenting its capacity. 

As Coinbase continues to onboard new coins/tokens, having Solidify should help the exchange bring further crypto investment options to their user base. 


What is Coinbase? 

Coinbase is a crypto exchange that offers investors and users the ability to sell, buy, exchange or store their crypto. The exchange offers the majority of the most popular crypto assets to buy and sell, including but not limited to: Bitcoin, Ethereum, Bitcoin Cash, Cardano, Polkadot, Uniswap and Solana. The exchange is simple to use and geared towards beginners, which has resulted in Coinbase becoming one of the most popular crypto currency exchanges in the world. Coinbase is now available in over 100 countries

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John Tunney

John Tunney is an accomplished analyst and crypto enthusiast. The UCLA alum has been actively reporting and blogging for 3 years, and has a passion for all things finance.

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