How to design safer crypto transactions
“Even if you are a super genius or capable of being really careful, the reality is a system that requires you to expend less effort on not losing your stuff is a better system.”
Crypto wallets can have all the security in the world, but the reality is that many security incidents each year do not stem from weak cryptography. They stem from user error.
A 2025 report from crypto exchange WhiteBIT found that 40.8% of crypto security incidents were caused by social engineering scams, showing how often attackers exploit user behavior rather than technical flaws.
Safer crypto design reduces how much judgment is required at signing. Instead of relying on users to interpret risk in the moment, decision-making shifts to enforceable rules. That’s where policy engines come in.
What is a policy engine? Policy engines evaluate objective transaction properties against predefined rules before a signature is produced. They are like a block sorter that only accepts one specific shape. If the shape does not match, it does not go through.
Historically, If a user or application could request a signature, the wallet could sign. This model worked when wallets were simple and manually operated, but it breaks down under modern conditions.
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How to use granular wallet policies to secure digital assets