Can AI Write Secure Smart Contracts? An Investigation
Efficacy of Various Large Language Models in Generating Smart Contracts
By
Siddhartha Chatterjee|Bina Ramamurthy

https://arxiv.org/abs/2407.11019v2
Summary
The world of blockchain and smart contracts is evolving rapidly, promising secure and automated transactions. But what if we could automate the creation of these contracts themselves? Researchers recently explored whether Large Language Models (LLMs), the brains behind AI tools like ChatGPT, could generate reliable smart contracts on the Ethereum blockchain. The study tested several leading LLMs, including GPT-3.5, GPT-4, GPT 4-o, Cohere, Mistral, Gemini, and Claude, using them to generate different types of smart contracts, from simple variable storage to complex token creation. The results were intriguing. While LLMs excelled at basic tasks like storing and retrieving data on the blockchain, they struggled with more complex functions, such as those involving financial transactions and security protocols. Interestingly, simpler, descriptive instructions worked better than detailed, structured prompts. This suggests that current LLMs perform better with human-like instructions, rather than precise, technical specifications. While GPT-4-o and Claude outperformed others, the generated code often lacked the security rigor needed for real-world deployment. Alarmingly, most models overlooked critical security vulnerabilities, unless explicitly prompted to consider them. This highlights a major challenge: AI-generated smart contracts, in their current state, could be easily exploited due to inherent security flaws. This research reveals the potential, but also the limitations, of using LLMs for smart contract generation. While they’re not ready to replace human developers, they show promise for assisting with simpler tasks and potentially adapting existing contracts. Future research will explore better prompting techniques, and stronger security analysis tools, to make AI-generated smart contracts robust and secure. For now, the dream of fully automated, secure smart contract creation remains just that—a dream.
🍰 Interesting in building your own agents?
PromptLayer provides the tools to manage and monitor prompts with your whole team.
Get started for free.Question & Answers
What security challenges did the research identify when using LLMs to generate smart contracts?
The research revealed several critical security vulnerabilities in LLM-generated smart contracts. First, most models failed to implement basic security protocols unless explicitly prompted. The technical breakdown shows that while models like GPT-4-o and Claude performed better than others, they still produced code lacking essential security features for real-world deployment. For example, in financial transaction contracts, the LLMs often missed implementing crucial checks like reentrancy guards or proper access controls. This could lead to potential exploits similar to the infamous DAO hack, where attackers could drain funds through unprotected function calls.
What are smart contracts and how do they benefit everyday transactions?
Smart contracts are self-executing digital agreements stored on blockchain technology. They automatically enforce and verify contract terms without requiring intermediaries like lawyers or banks. The main benefits include reduced costs, faster processing times, and increased transparency. For example, in real estate, smart contracts can automatically transfer property ownership and funds once conditions are met, eliminating paperwork and reducing closing time from weeks to minutes. They're also useful in supply chain management, insurance claims, and digital asset trading, making transactions more efficient and trustworthy.
How is AI transforming the future of contract automation?
AI is revolutionizing contract automation by streamlining creation, review, and management processes. The technology can analyze thousands of contracts quickly, identify potential risks, and suggest improvements based on historical data. Key benefits include reduced manual work, faster processing times, and improved accuracy in contract handling. In practical applications, businesses use AI-powered systems to automatically generate standard agreements, flag unusual terms, and ensure compliance with regulations. While current AI systems aren't ready to fully replace human oversight, they're invaluable tools for enhancing efficiency and reducing errors in contract management.
.png)
PromptLayer Features
- Testing & Evaluation
- Study's systematic testing of multiple LLMs for smart contract generation aligns with PromptLayer's batch testing capabilities
Implementation Details
Create standardized test suite for smart contract generation, implement automated security checks, establish performance metrics
Key Benefits
• Systematic comparison of LLM performance
• Automated security vulnerability detection
• Consistent quality assessment across contract types
Potential Improvements
• Integration with blockchain security tools
• Enhanced vulnerability detection mechanisms
• Real-time performance monitoring
Business Value
.svg)
Efficiency Gains
80% faster evaluation of LLM-generated contracts
.svg)
Cost Savings
Reduced security audit costs through automated testing
.svg)
Quality Improvement
Significantly lower rate of security vulnerabilities in production
- Analytics
- Prompt Management
- Research finding that descriptive instructions outperform technical specifications suggests need for sophisticated prompt versioning
Implementation Details
Create template library for different contract types, implement version control for prompts, establish prompt effectiveness metrics
Key Benefits
• Standardized prompt templates
• Historical performance tracking
• Collaborative prompt refinement
Potential Improvements
• AI-assisted prompt optimization
• Context-aware prompt selection
• Automated prompt effectiveness scoring
Business Value
.svg)
Efficiency Gains
50% reduction in prompt engineering time
.svg)
Cost Savings
Decreased iteration costs through reusable templates
.svg)
Quality Improvement
More consistent and secure contract generation