System vs System: Why crypto needs a culture of relentless security

Economic Times

21-07-2025

In the early years of crypto, the dominant narrative was often adversarial: crypto vs. traditional systems, decentralization vs. control, innovation vs. regulation. But that framing is no longer useful—nor is it accurate. What we are witnessing today is not a battle of ideology, but of resilience. This shift reflects a growing realization: the long-term viability of crypto depends on building systems that are not just open and inclusive, but fundamentally secure.
ADVERTISEMENT In this new age, cybersecurity isn't a support function—it is the foundation. Whether you're an exchange safeguarding billions in user assets, a developer launching a smart contract, or a retail investor using self-custody wallets, security determines whether your system can withstand stress, fraud, and attacks. Without traditional intermediaries, the burden of protection moves to the edge—to platforms, protocols, and people.
A recent scam I discussed on X illustrates the risks we face when this responsibility is ignored. On the surface, it appears harmless: someone shares a wallet seed phrase on a forum or in a comment section, asking for help withdrawing funds. Curious users import the wallet and see a balance—often in stablecoins like USDT or DAI. The catch? There's no native token for gas fees. Driven by the urge to extract the funds, users send ETH or TRX to enable the transfer. Instantly, those tokens are drained by bots monitoring the wallet. The user thought they were exploiting a mistake—when in fact, they were the target all along.
This isn't a flaw in the blockchain. It's a flaw in human behavior. There was no technical breach—just psychological bait and an ecosystem not yet equipped to protect people from themselves.These types of scams are becoming more frequent and more sophisticated. They don't rely on code exploits, but on exploiting curiosity, greed, and a lack of security awareness among everyday users. That's why building a security-first culture across the Web3 ecosystem is non-negotiable. We cannot wait for regulators or law enforcement to react. The responsibility begins with us—the builders, founders, and platforms that power this industry.While platforms must improve on the security front, no amount of backend protection can compensate for a lack of user awareness. If crypto is about empowerment, that empowerment must come with education. We need public campaigns, product nudges, default safety mechanisms, and consistent messaging that puts user protection front and center. Security should not be something users opt into—it should be something they cannot opt out of.
ADVERTISEMENT The ultimate question we must ask is this: when the pressure rises, which systems will hold—and which will fail? The answer won't depend on hype cycles, price rallies, or even regulation. It will depend on how well we've designed our infrastructure, protocols, and user journeys to withstand inevitable threats.In a world where financial systems are increasingly digital and decentralized, we are not just competing on innovation—we are competing on integrity. Crypto will not succeed because it is new. It will succeed because it is stronger.
ADVERTISEMENT And that strength will come from one thing above all else: security.
(Neeraj Khandelwal is co-founder of CoinDCX)
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(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)