Real-World Applications

Real-World Applications of Formal Verification in Blockchain

The integration of formal verification into the blockchain sector has significantly enhanced the security and reliability of smart contracts and decentralized applications (DApps). Here we explore some notable real-world examples where formal verification has been successfully applied to improve blockchain projects.

Kyber Network and the K Framework

Kyber Network, a decentralized, blockchain-based liquidity protocol, turned to the K framework for formal verification of its smart contracts. The K framework, known for its ability to define the semantics of programming languages and verify system properties, was instrumental in identifying several critical bugs within the Kyber protocol. By utilizing the K framework, Kyber Network was able to rectify these issues, significantly enhancing the protocol’s security and efficiency. This example highlights the effectiveness of formal verification in ensuring the correctness of complex protocol implementations in the DeFi (Decentralized Finance) space.

Chain Security’s Audit of Gnosis

Chain Security, a blockchain security firm, showcased the power of combining manual review processes with automated formal verification techniques in its audit of the Gnosis prediction market contracts. Gnosis operates as a decentralized platform for creating prediction markets, where the accuracy and security of smart contracts are paramount. Through the use of formal verification, Chain Security identified and helped remediate several vulnerabilities within the Gnosis contracts. This approach not only ensured the contracts’ security but also demonstrated the value of integrating formal methods into traditional security audits.

Augur and Mythril: A Partnership for Security

Augur, a decentralized prediction market platform built on the Ethereum blockchain, utilized Mythril, a security analysis tool that employs symbolic execution to find vulnerabilities in smart contracts. Mythril’s comprehensive analysis capabilities enabled Augur to detect and address critical security flaws, thereby preventing potential exploits. The use of Mythril in Augur’s development process underscores the importance of formal verification tools in maintaining the integrity and trustworthiness of decentralized prediction markets.

MakerDAO’s Use of Z3 Theorem Prover

MakerDAO, a leading player in the DeFi ecosystem known for its Dai stablecoin and decentralized lending services, leveraged the Z3 theorem prover to ensure the correctness of its smart contracts. Z3, an SMT (Satisfiability Modulo Theories) solver, enabled MakerDAO to formally verify the logic underlying its contracts, identifying potential vulnerabilities and logic errors. The application of Z3 in MakerDAO’s development process highlights the crucial role formal verification plays in safeguarding the mechanisms of DeFi platforms, ensuring that they operate securely and as intended.


These real-world examples illustrate the transformative impact of formal verification in the blockchain domain. By leveraging formal verification tools and methodologies, projects like Kyber Network, Gnosis, Augur, and MakerDAO have significantly improved the security, reliability, and trustworthiness of their smart contracts and platforms. As the blockchain ecosystem continues to evolve and expand, the adoption of formal verification is set to become a standard practice, ensuring that new technologies are built on a foundation of mathematical certainty and security.