An audit framework in cryptocurrency refers to a structured approach and set of guidelines for evaluating the security, integrity, and performance of blockchain networks and cryptocurrency projects. This framework involves processes to review code, assess risks, and verify compliance with regulatory standards.The audit typically includes examining smart contracts, which are self-executing contracts with the terms directly written into code. This review helps identify vulnerabilities that could lead to hacks, exploits, or unintended consequences.Additionally, the framework may encompass an assessment of governance practices, transaction processes, and the overall architecture of the project. Auditors check for transparency and adherence to best practices in areas such as user data protection, financial management, and operational efficiency.Finally, an audit framework aims to instill trust among users and investors by providing insights into a project’s reliability and potential risks, ultimately helping to foster a safer environment for cryptocurrency adoption and innovation.