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Ethereum Developers Propose ERC-7512 Standard to Enhance Smart Contract Auditing on Blockchain

In a bid to enhance the security and reliability of smart contracts on the Ethereum blockchain, a group of Ethereum developers from projects including Safe, Ackee Blockchain, OtterSec, ChainSecurity, OpenZeppelin, and Hats Finance have introduced a new proposal known as ERC-7512. This proposal aims to revolutionize the way contract audit information is verified directly on the blockchain.

Until now, audits have been presented manually by auditing companies, often lacking on-chain verification of the information they provide. This has led to instances where projects that were supposedly “audit-certified” ended up causing losses due to malicious internal actions.

A case in point is the DEX Merlin on zkSync, which experienced a “rug pull” incident back in April, despite undergoing a thorough CertiK audit. This security firm was unable to guarantee that internal project misconduct would not occur. In the end, CertiK had to plan a $2 million compensation for the affected parties.

To address these issues, ERC-7512 has been proposed to allow developers to have a more meticulous view of contract audits. Users will also have access to audit data to make investment decisions. If ERC-7512 is implemented, it could establish a reliable auditing system within the industry.

Richard Meissner, co-founder of Safe and one of the authors of ERC-7512, shared his thoughts on the proposal, stating, “The first step is to provide crucial audit information for contracts that can be verified. This is the goal of ERC-7512, a standard drafted by some of the industry’s top auditors and security experts. ERC-7512 is not just a one-time initiative but a catalyst for further innovation in smart contract security.”

It remains uncertain whether the Ethereum core developers will accept and implement ERC-7512 as a standard. In July, the Ethereum development community proposed another new token standard called ERC-7265, a “circuit breaker” designed to prevent token transfers in the event of DeFi protocol attacks. This proposal is still in development.

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