Cryptography is superior to traditional finances. Unlike Swift, which may take days to process payments, the newest blockchain networks achieve the purpose in mere seconds and have sufficient performance for the adoption of real world mass. The Secretary of the United States Treasury, Besent Projects, Stablecoins will only reach $ 3.7 billion by 2030. That is the equivalent of the GDP of Germany.
Despite its technological advantage, Crypto has a big security problem. We are on the way to losing about 4% of the total blocking value for hacks in 2025. In H1 Solo, the industry lost more than $ 2 billion. When it announces, that points to more than $ 4 billion that flow towards the wallets of the computer pirates this year.
If these losses are reflected in traditional finances, the entire collapse system would. However, Crypto normalizes the catastrophic loss rates and wonders why JPMorgan is not moving his balance in the chain.
Hacks cost more than you think
The real damage goes far beyond immediate theft. It is a load for the entire ecosystem and has a price.
For an industry that aspires to administer the wealth of the world, this is an existential problem. No traditional financial market could survive with annual robbery rates approaching 4%. To unlock institutional flood doors and bring the next billion billion in the chain, we must boost piracy rates below 1%, now.
North Koreans are stalking their development team
At the time a cryptographic project announces funds, North Korean computer pirates begin social engineering attacks against development teams. They have been afraid. Look at the Radiant Capital Hack: $ 50 million missing because the attackers committed the devices through malware that infected the transaction firm.
The most painful part of all this is that we have the tools to stop this, and continue to improve. The monitoring systems promoted by AI can detect and solve critical security problems before the code are implemented, catching vulnerabilities that humans lose. Audit services connect projects with ELITE web3 safety researchers to deliver personalized security reports. We have the tools, but the projects are still sent with unique audits prior to the launch and pray. The protocols establish rewards to identify 1% of the funds at risk when they must be 10%. In addition, monitoring skip because it seems expensive until they explain to users why $ 50 million faded.
How to make cryptography ready for stellar schedule
Reducing hack rates below 1% is an engineering challenge that we already know how to solve. The protocols must adopt comprehensive safety batteries: continuous monitoring, security rewards with a significant price to encourage security researchers, formal verification of critical components and the detection of threats with AI. The cost is trivial compared to potential losses.
Banks and institutions see these hack rates. They direct mathematics. And they conclude, correctly, that cryptography is not ready for stellar schedule.
Defi survived all market accidents without a systemic unknowable debt. We solved the technical problems. Security cannot be a late occurrence. Or we adopt the security tools that we have already built, or we see the implementation of institutional capital in other places, while computer pirates finance their operations with our losses.
