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Vitalik Buterin Proposes TX Simulations to Boost Crypto Security

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Crypto Breaking News

Vitalik Buterin, the co-founder of Ethereum, has floated a design concept that could reshape how users interact with wallets and smart contracts. In a Sunday post on X, he argued that security and user experience are not separate, but rather two sides of the same coin—both hinging on what users actually intend when they initiate on-chain actions. The gist is to build systems that help users verify their intent through on-chain simulations before an action is executed, potentially reducing mistakes and vulnerabilities in the process. The discussion also touched on practical guardrails, such as spending limits and multisignature thresholds, to ensure that actions align with a user’s risk appetite. The proposal is part of a broader effort to improve crypto UX without compromising the core principles of decentralization and permissionless access. X post.

Key takeaways

  • Buterin envisions an intent-based layer where users see a simulated, on-chain preview of consequences before confirming an action, tying user goals to blockchain outcomes.
  • The approach could extend beyond wallets and smart contracts to systems at the OS or hardware level, broadening the scope of intent verification.
  • Mechanisms such as spending limits and multisig approvals are proposed to ensure execution only occurs when intent, expected outcomes, and risk limits are aligned.
  • Buterin acknowledges that defining user intent is extremely complex, and there may never be a perfect security solution.
  • The goal is to make routine, low-risk interactions easier while making dangerous operations harder, guided by a user’s stated preferences and risk tolerance.

Tickers mentioned: $ETH

Sentiment: Neutral

Market context: The idea arrives as Ethereum’s ecosystem continues to pursue better UX and stronger on-chain security, while debates persist about the blockchain trilemma and how to balance security, decentralization, and scalability amid rapid wallet and dApp growth.

Why it matters

The core appeal of an intent-based security model is practical: it seeks to reduce user error and opportunistic exploits by ensuring that the action a user intends to take is what actually plays out on-chain. If implemented effectively, wallet providers could offer a dynamic preview of a transaction’s on-chain effects—akin to a sandboxed simulation—that helps users catch mistakes before they sign. This could lower the barrier for non-technical users to participate in DeFi and other on-chain activities without sacrificing safety.

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From a design perspective, the concept would demand a careful rethinking of user interfaces and risk signaling. Wallets and smart contract platforms would need to present clear, interpretable simulations that reflect real-world costs, slippage, and potential reverts. That implies a shift in how developers approach permission models, error handling, and fallback options. It also raises questions about standardizing risk metrics across diverse protocols, ensuring consistency across wallets, and maintaining trust when simulations align with complex, dynamic on-chain states.

Critically, the proposal acknowledges one of crypto’s enduring challenges: user intent is not a static, easily measurable target. The quoted line underscores this complexity: “It’s not because machines are flawed, or even because humans designing the machines are flawed, but because ‘the user’s intent’ is fundamentally an extremely complex object that the user themselves does not have easy access to.” Still, Buterin suggests a pragmatic path forward: the intent system could require overlapping specifications—so that actions proceed only when multiple independent signals converge with the user’s declared goals. This layered approach aims to prevent unintended consequences while avoiding excessive friction for legitimate, low-risk actions.

The broader framing ties into the blockchain trilemma—security, decentralization, and scalability. Buterin has long argued that these three are in tension, and solutions must trade one for another. In the Ethereum ecosystem, decentralization and scalability have garnered heightened focus in recent years as developers push layer-2s and architectural upgrades to relieve mainnet congestion. A robust, user-centric security enhancement could help mainstream adoption by reducing the likelihood of user error without centralizing control or compromising trust assumptions.

For researchers and practitioners, the concept invites practical experimentation. It is one thing to propose simulations in theory; it is another to integrate them into wallet UX, ensure privacy of intents, and defend against adversarial manipulation. The discussion also nods to hardware and operating-system considerations, suggesting that intent-aware security could become a cross-cutting pattern for broader devices beyond purely blockchain-native software. The path from idea to implementation would require collaboration among wallet vendors, security researchers, and standard-setting bodies to establish verifiable safety guarantees while preserving the open, permissionless ethos that underpins Ethereum.

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What to watch next

  • Public proposals or whitepapers from Ethereum researchers or wallet developers outlining concrete designs for on-chain intent simulations.
  • Pilot experiments or beta features in wallets that test simulated consequences and multi-signal intent checks in real user flows.
  • Discussions around risk models, privacy protections, and governance processes needed to validate intent-based security across different ecosystems.
  • Further commentary from Vitalik or Ethereum Foundation researchers that expand on the overlap between user intent, security guarantees, and UX considerations.

Sources & verification

  • Vitalik Buterin’s X post discussing intent-based security and on-chain simulations: https://x.com/VitalikButerin/status/2025653045414273438
  • Starknet taps EY Nightfall to bring institutional privacy to Ethereum rails: https://cointelegraph.com/news/starknet-taps-ey-nightfall-institutional-grade-privacy
  • Ethereum Foundation seal partner Stop Wallet Drainers: https://cointelegraph.com/news/ethereum-foundation-seal-partner-stop-wallet-drainers
  • Blockchain trilemma discussion and its framing around security, decentralization, and scalability: https://cointelegraph.com/news/blockchain-trilemma-solved-zkevms-and-peerdas-vitalik-buterin
  • Sacrificing Ethereum’s values for mainstream adoption must stop now: https://cointelegraph.com/news/sacrificing-ethereums-values-for-mainstream-adoption-must-stop-now-buterin

Intent-based security and on-chain simulations: what it could change

Ethereum (CRYPTO: ETH) has long stood at the center of a debate about how to balance safety with openness. Buterin’s latest stance argues that a system of simulated previews could help users see the chain of consequences before a transaction is broadcast. The idea aligns with a broader push in the ecosystem to reduce risky interactions—such as signing a contract that would drain funds or approve a high-velocity transfer—by making the path from action to outcome more transparent. The mechanism would likely rely on a combination of client-side simulations, server-assisted checks, and user-configurable risk controls that empower individuals to tailor their security posture without locking down their capabilities.

People familiar with the concept emphasize that any practical implementation would have to preserve the security guarantees that users expect from public blockchains. The simulations would need to be tamper-evident and auditable, with clear signals about potential edge cases, network fees, and the probability of execution under different conditions. Importantly, the model would have to respect user autonomy: it should not become a gatekeeper that blocks legitimate activities simply because a risk model flagged a worst-case scenario. The design goal remains to help users make informed decisions, not to override user intent with bureaucratic or opaque prompts.

As the ecosystem continues to evolve, the notion of intent-based security could influence wallet design, smart contract verification tooling, and even hardware-embedded protections. If the approach proves viable, it may contribute to a more intuitive onboarding experience for newcomers while providing a layered defense for seasoned users who routinely engage in high-stakes DeFi operations. The conversation is ongoing, and observers will be watching for concrete proposals, pilot deployments, and community feedback that help translate the concept into actionable features without compromising the decentralized, permissionless nature of Ethereum.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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Analysts warn of $60K retest

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Analysts warn of $60K retest

Bitcoin price prediction favors a retest of the $60,000 level after losing $65,000 support amid macro tensions and weakening sentiment.

Summary

  • BTC is down 27% in 30 days and has posted five straight monthly declines.
  • $65K support has broken, putting $60K in focus.
  • CME futures positioning shows large traders reducing short exposure.

Bitcoin was trading at $64,846 at press time, down 4.6% in the past 24 hours. The asset has slipped 5% over the last week and is down 27% in the past 30 days.

Bitcoin (BTC) has now declined for five straight months since setting its all-time high in October last year, according to CoinGlass data. If losses continue through month-end, this would mark the second-longest monthly losing streak in Bitcoin’s history.

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Market sentiment has deteriorated sharply. The Crypto Fear & Greed Index fell four points to 5, placing it deep in the “Extreme Fear” zone.

Macro pressure keeps $60,000 in focus

Caroline Mauron, co-founder of Orbit Markets, told Bloomberg that the crypto market remains fragile, with traders closely watching the $60,000 support level. She pointed to rising tensions involving Iran and uncertainty around new U.S. tariffs as key pressure points.

Over the weekend, President Donald Trump raised a proposed global tariff rate from 10% to 15% via Truth Social. The move came after the U.S. Supreme Court invalidated previous emergency tariffs imposed under IEEPA.

Then, claiming balance-of-payments issues, Trump re-imposed tariffs under Section 122 of the Trade Act of 1974. The policy change unsettled broader markets.

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Traditional safe havens like gold and silver responded more favorably than risk-sensitive assets like cryptocurrency. Bitcoin still trades more like a high-beta risk asset than a defensive hedge in the current climate.

Meanwhile, Rachael Lucas, analyst at BTC Markets, said Bitcoin would need to reclaim $70,000 to restore bullish momentum. Analysts had identified $65,000 as a key psychological and technical support level.

That level has now been breached. A sustained move below it increases the probability of a retest of $60,000.

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On-chain data from Glassnode adds to the bearish sentiment. The seven-day EMA of Bitcoin’s Net Realized Profit and Loss sits near -$480 million, after plunging to -$1.24 billion on Feb. 6.

While realized losses have eased from peak capitulation levels, the market remains sell-side dominant. Glassnode noted that investor capitulation is still unfolding as Bitcoin works through a broader bottoming process.

Futures positioning hints at possible base formation

There are early signs that institutional positioning may be shifting. A recent report from the U.S. Commodity Futures Trading Commission shows that large traders in CME Bitcoin futures reduced short exposure significantly.

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Net positioning moved from roughly +1,000 contracts a month ago to -1,600 contracts recently, suggesting some institutional players may have flipped from net short to net long. Last April saw a similar change in positioning, which was followed by a 70% increase in Bitcoin prices.

Analysts warn that positioning data by itself does not prove a bottom, though. The risk of a decline could reach $40,000 if important support fails. 

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Missouri Lawmakers Advance Bitcoin Reserve Bill

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Missouri Lawmakers Advance Bitcoin Reserve Bill

US lawmakers in Missouri advanced a revived Bitcoin strategic reserve bill last week, sending it to the House Commerce Committee as part of the next step in the legislative process.

House Bill 2080 was referred to the House Commerce Committee on Feb. 19 for review, where it will undergo a public hearing, a committee vote and potentially receive recommendations for changes before returning to the House for debate and a final vote to pass it through the chamber.

Missouri treasurer can store BTC for 5 years

Missouri Representative Ben Keathley introduced House Bill 2080 in January, which proposes allowing the state treasurer to “invest, purchase, and hold cryptocurrency using state funds,” according to the legislation’s summary.

The state treasurer can accept gifts, grants, and donations from Missouri residents or government entities to help fund the reserve

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The treasurer is also authorized to store the Bitcoin (BTC) for five years, after which it can be transferred, sold, or converted into another token. Transactions involving foreign countries or entities outside of Missouri are prohibited.

Another part of the bill proposes allowing government entities to accept crypto approved by the Department of Revenue for citizens to pay taxes, fees, fines, or other expenses owed.

Related: Bitcoin back to record fear levels as it wipes weekend gains

Asset manager VanEck speculated last year that strategic Bitcoin reserves in American states could drive more than $23 billion in demand if adopted. 

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Source: MartyParty

A date for the public hearing hasn’t been set yet; however, the legislation has a proposed effective date of Aug. 28, according to the Missouri House of Representatives.

If 2080 passes through the House, it will be sent to the Senate for reading, committee review, floor debate, and a vote. After the Senate, the bill goes to Missouri Governor Mike Kehoe’s desk for signature or veto.

A similar bill died in the committee stage

Keathley introduced a similar bill, House Bill 1217, in February last year; however, it failed to advance past the committee stage and was ultimately abandoned.