An unverified contract that the Etherscan platform not confirmed the source code of the smart contract.
The contract’s bytecode is available on the blockchain, but Etherscan cannot guarantee its legitimacy.
Unverified contracts are often associated with higher risks, as their true intentions may be hidden.
Etherscan advises users to exercise caution when interacting with unverified contracts.
The verification process involves matching the contract’s bytecode with its publicly available source code.
Verified contracts have a green checkmark icon on Etherscan, indicating that their source code has been authenticated.
Developers can verify their contracts on Etherscan by uploading their source code and matching it with the contract’s bytecode.
Verification helps users understand the contract’s logic and ensures that it operates as intended.
Some legitimate projects may not verify their contracts due to various reasons, such as intellectual property concerns.
Etherscan’s verification mechanism is not foolproof and should not be solely relied upon for investment decisions.
What Does Unverified Contract Mean on Etherscan?
As a cryptocurrency enthusiast, I’ve spent countless hours scouring Etherscan, searching for the next big thing. But, I’ve often stumbled upon contracts labeled as “Unverified.” At first, I thought it was just a minor issue, but as I delved deeper, I realized it was more significant than I initially thought. In this article, I’ll share my personal experience with unverified contracts on Etherscan, and what it means for you as a trader.
What is a Smart Contract?
smart contract is a computer program that automates the execution of an agreement between two parties. It’s self-executing, and once deployed on a blockchain, it becomes irreversible.
What is Etherscan?
Etherscan is a blockchain explorer that allows users to explore, and interact with the Ethereum blockchain. It provides real-time data on transactions, smart contracts, and token balances. Etherscan is often the go-to platform for cryptocurrency enthusiasts, traders, and developers alike.
What Does Unverified Contract Mean on Etherscan?
When a contract is labeled as “Unverified” on Etherscan, it means that the contract’s code has not been verified by the Etherscan team. This doesn’t necessarily mean the contract is malicious or fraudulent, but it does raise some red flags.
Here are some reasons why a contract might be unverified:
Lack of transparency
Complexity of the contract code
Newly deployed contract
Risks Associated with Unverified Contracts
While unverified contracts don’t necessarily mean the contract is malicious, they do pose some risks:
Risk
Description
Security risks
Unverified contracts may contain vulnerabilities, allowing hackers to exploit them.
Lack of transparency
Unverified contracts may be hiding something, making it difficult for users to understand the contract’s true purpose.
Potential scams
Verified contracts may be used to scam users, or phishing attacks.
Real-Life Example:
I remember coming across a token that seemed too good to be true. The token was advertised as a “next Bitcoin,” and the website was professionally designed. However, when I checked the contract on Etherscan, it was labeled as “Unverified.” I decided to dig deeper and found that the contract was a known phishing scam.
How to Verify a Contract on Etherscan
Verifying a contract on Etherscan is a relatively straightforward process:
Step
Description
1.
Get the contract’s Solidity code from the developer or the official website.
Compile the code
Compile the code using a Solidity compiler.
3.
Upload the code
Upload the compiled code to Etherscan.
4.
Verify the contract
Etherscan will then verify the contract, and update its status.
Frequently Asked Questions:
What does “Unverified” mean on Etherscan?
An “Unverified” contract on Etherscan means that the contract’s source code has not been manually reviewed and verified by the Etherscan team or the contract’s creator. Here are some common reasons why a contract might be unverified:
Reasons for an Unverified Contract:
Recently deployed contracts may not have been reviewed by Etherscan’s team yet. It may take some time for the team to review and verify the contract.
Private or Custom Contract: Some contracts might be custom-made for a specific use case or private project. In such cases, the contract creator might not want to share the code publicly, making it unverified.
Obfuscated or Minified Code: Contracts with obfuscated or minified code can make it difficult for Etherscan’s team to review and verify. Obfuscated code is intentionally made hard to understand, while minified code is compressed to reduce its size.
Lack of Verification Request: If the contract creator hasn’t requested verification, Etherscan’s team won’t review the contract. Contract creators can submit a request for verification through Etherscan’s website.
Risks Associated with Unverified Contracts:
While an unverified contract doesn’t necessarily mean it’s malicious, there are potential risks associated with interacting with such contracts:
Hidden Functionality: Without access to the source code, it’s difficult to know exactly how it works, which may lead to unexpected or hidden functionality.
Security Vulnerabilities: Unverified contracts may contain unknown security vulnerabilities, putting users’ funds at risk.
Fraudulent Activity: In the worst-case scenario, an unverified contract might be designed to defraud users, making it essential to exercise caution.
How to Proceed with Caution:
If you encounter an unverified contract, follow these best practices to minimize potential risks:
Research and Due Diligence: Research the contract, creator, and reviews from other users before interacting with the contract.
Monitor Contract Activity: Use Etherscan’s tracking features to monitor contract’s activity, transaction history, and smart contract logic.
Use Decentralized Tools: When possible, use decentralized tools and apps that provide an added layer of protection and transparency.
Remember, it’s always important to exercise caution when interacting with unverified contracts and to do your own research before sending any Ether or tokens to an unverified contract.
