Would You Sign a Contract Without Reading It?
You wouldn't sign a contract you don't understand. Why should a smart contract be different?
When you buy a house, you read the purchase agreement. When you buy a business, lawyers review the contracts. When you make a major investment, you want to understand the terms before committing.
But when the investment is built on a smart contract, something strange happens.
The contract may determine how tokens can be issued, transferred, paused or controlled. It may contain permissions that give certain parties extraordinary powers. It may define what can be changed later.
And yet many investors never read it.
In fairness, most couldn't. Smart contracts are written in code. Understanding what they really do requires technical expertise, and even experienced developers can miss important details.
That is one reason we built SentaScan. Enter the address of a smart contract and get a free independent first review: a SentaScore grade, and every issue found by severity and title. You don't need to own the project. You don't need permission from the developers. You don't even need to be able to read the code yourself.
If a contract is important enough to put your money behind, it is probably important enough to have it checked first.
You wouldn't sign a contract you don't understand. Why should a smart contract be different?
A version of this article was also published on LinkedIn.