Code4rena is a decentralized security auditing platform for Web3 projects. It operates as a competitive league where "Wardens" audit smart contracts to protect DeFi ecosystems from vulnerabilities. "Sponsors" fund prize pools to incentivize these security audits, while "Judges" evaluate the findings, determining their severity and accuracy. Unlike traditional audits, Code4rena’s model offers broader coverage and guaranteed rewards for participants, making it a dynamic and community-driven approach to enhancing Web3 security.