Opinion by: Ismael Hishon-Rezaizadeh, co-founder and CEO of Lagrange

Trade wars and proxy wars are underway in the current geopolitical power realignment, but the next phase won’t be fought with tariffs or drones. It will be decided by who leads in cryptography.

Just as past industrial and technological revolutions in its private sector yielded the US an edge in global power, the ability to secure and verify information through cryptographic breakthroughs, especially in zero-knowledge (ZK) proofs, will determine the balance of power in the digital age.

The US risks falling behind. While China and other nations invest aggressively in technological advancements, America lacks a national strategy to maintain leadership in this critical domain. It’s time to recognize cryptography as a foundational technological asset and a key to securing the country’s economic and national security future.

From industrial might

During the world wars of the previous century, the US maintained a dominant global position through industrial strength. The country supplied around 75% of the oil used by the Allies in WWI and around 85% of their oil in WWII. The US also manufactured approximately two-thirds of all military equipment used by the Allies in the latter, playing a pivotal role in the war’s outcome.

Industrial strength was not merely an asset. It was a strategic advantage in global conflicts. American influence will continue to be tied to the private sector’s innovations, especially as we move into more technologically advanced forms of warfare.

To software superiority

Superiority in software has become the most efficient way to sustain US leadership worldwide. Stuxnet offers an example in recent history. In 2010, the software-based operation led by the US and Israeli governments was able to remotely crash Iran’s nuclear development program without deploying a single soldier.

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Today’s private companies have followed suit and developed new software technologies for national defense purposes that have become essential in maintaining the US’s competitive edge. Defense contractors have enhanced US global influence with their contributions to AI, surveillance and advanced analytics for national security purposes. 

The historical trend is set to continue as cryptography starts to play an increasingly important role in defense technology.

Cryptography and zero-knowledge (ZK) proofs

The use cases for cryptography, specifically ZK-proofs, extend far beyond the protection of financial transactions. Consider a shift in focus from the AI race for a bit. In that case, ZK-proofs become critical for more immediately tangible purposes, such as securing the country’s digital infrastructure.

The US Department of Advanced Research Projects Agency and the Department of Defense have already acknowledged the strategic importance of ZK-proofs for defense and national security and developed the Securing Information for Encrypted Verification and Evaluation (SIEVE) program.

NASA and the European Space Agency are exploring blockchain and ZK-proofs to ensure the authenticity of satellite communication commands and prevent cyberattacks.

Private sector contributions are embedding secure cryptographic elements into drones to prevent hacking and ensure safe defense and critical infrastructure operations. At the same time, cybersecurity firms are leveraging blockchain to create secure digital identity ecosystems. 

The private sector is currently at the forefront of innovation in this field. In 2019, there was a boom in research papers focused on ZK-proof technology driven by private efforts to find better solutions in blockchain scalability via ZK-rollups. 

New and innovative approaches to ZK-proofs emerged, with most of the research being led and funded by crypto companies in the private sector. These are all production-ready, future-proof technologies that are finding their way into civilian applications but could be applied to military purposes just as quickly.

Global leadership through innovation

America’s dynamism in the digital age, particularly in cryptography and blockchain technologies, will define its future role as a global power. The US must make bold, strategic investments in private-sector and public-sector research and development for ZK-proofs to maintain its leadership in cryptographic technologies, which are now indispensable to national security, defense and economic stability. 

With a pro-crypto administration and a supportive Congress, the time has come to move beyond merely regulating crypto as an investment class. There must be active cultivation and support for innovation in cryptography and emerging technologies like zero-knowledge proofs. The centuries-old relationship between the private sector and the government must continue to defend national interests. 

This is America’s moment to build a new wave of industrial and technological dominance. It’s time to seize this opportunity and ensure the next century of global leadership is powered by American innovation.

Opinion by: Ismael Hishon-Rezaizadeh, co-founder and CEO of Lagrange.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

An Ether investor who had a large position on decentralized finance (DeFi) lending platform Sky has been liquidated to the tune of more than $100 million as the price of Ether crashed. 

The Ether (ETH) whale lost 67,570 ETH worth around $106 million when the asset crashed by around 14% on April 6, liquidating his collateralized debt position on Sky, according to Maker Vaults explorer DeFi Explore, and as observed by Lookonchain.

The Sky lending protocol, which rebranded from Maker in August, is used by DeFi participants to create collateralized debt positions by providing crypto, ETH in this case, to borrow the platform’s stablecoin, DAI (DAI).

The system uses an overcollateralization ratio, typically 150% or higher, meaning that users need to deposit at least $150 worth of ETH to borrow 100 DAI. 

The protocol autonomously monitors the value of ETH collateral relative to the borrowed DAI, and if the ETH value falls and the collateral ratio drops below the minimum requirement, the position becomes eligible for liquidation.

This whale’s liquidation occurred when the ratio fell to 144% as the price of ETH plummeted. 

ETH whale liquidations. Source: DeFi Explore

Meanwhile, Spot On Chain reported that another whale that supplied 56,995 wrapped ETH, worth around $91 million, to borrow DAI was on the verge of liquidation. 

In a liquidation event, Sky seizes the ETH collateral, which is auctioned off to pay back the borrowed DAI plus fees. Any remaining collateral after the debt is paid is returned to the user. 

Ethereum price at bear market lows

ETH prices have crashed a whopping 14.5% over the past 24 hours, falling to $1,547 at the time of writing as the wider crypto market melts down in reaction to US President Donald Trump’s tariff-induced market sell-off. 

The last time ETH traded this low was in October 2023, when crypto was still deep in bear market territory, almost a year after the collapse of the FTX exchange. 

ETH remains down 68% from its all-time high in 2021, and further losses are likely to see more DeFi users liquidated unless they can provide more collateral. 

Related: Bitcoin price drops below $80K as stocks face 1987 Black Monday rerun

According to CoinGlass, 320,000 traders have been liquidated over the past 24 hours to the tune of almost $1 billion dollars. The majority of liquidations over the past four hours have been ETH positions, it revealed.

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A crypto user has gone very long on Solana, staking a very small portion of the token for the next 3,000 years, according to blockchain analytics firm Arkham Intelligence.

The unknown user staked $0.05 Solana (SOL) in 2023, and it will unlock in the year 5138, Arkham said in an April 5 post to X.

Speaking to Cointelegraph, Vincent Liu, chief investment officer at Kronos Research, said the move was likely a symbolic sign of showing conviction in Solana’s long-term ecosystem.

Source: Arkham Intelligence

“Legacy staking is more than locking assets it’s a mindset. The real edge in crypto isn’t in chasing short-term hype, but in holding long-term conviction assets through cycles,” he said.

Adding that: “this kind of thinking builds not just portfolios, but long term legacies.”

SOL is currently trading for $102, according to CoinMarketCap. A January report from asset manager Bitwise predicts the token could be worth between $2,300 and over $6,000 by 2030.

It’s impossible to know what the staked SOL will be worth by the time it’s unlocked in a few thousand years, but Liu says it would likely be a significant sum.

“If SOL appreciates just 2–5% annually, the compounding over 3,000 years becomes exponential. In any market condition, long-term compounding remains one of the most powerful financial forces,” he said.

Staking Solana for over 3 millennia

To put it into perspective, 5 cents compounded annually at a 3% annual interest rate would already result in over $486 undecillion (486 followed by 36 zeros) after 3,115 years.

However, the Solana sum would likely be much higher, given staking rewards are paid out every two to three days and compounded.

Users on X are speculating that the stake could be an attempt at creating generational wealth, or a random stunt with no real long-term plan.

Source: Arkham Intelligence

Kadan Stadelmann, chief technology officer at blockchain platform Komodo, told Cointelegraph he thinks the “3,000-year nickel play on SOL is a meme trade” that will one day be stamped on the SOL blockchain.

Related: Solana TVL hits new high in SOL terms, DEX volumes show strength — Will SOL price react?

“What will 3,000 years from now look like? Will humans still be around? Will the Solana blockchain? Such a long time horizon makes one ponder one’s place in the scheme of things,” Stadelmann said.  

He speculates people might even seek to outdo it by “making a 5,000-year play.”

At the moment, depending on the platform and validator choice, Solana can offer between 5% to over 8% in staking rewards. Meanwhile, Cardano (ADA) can start at around 2%, and Ether (ETH) staking rewards are usually between 2% and 7%.

Four Solana whales recently profited over $200 million in a staking play that began in April 2021, when they staked 1.79 million Solana, worth $37.7 million at the time. 

A similar unlock is expected in 2028. 

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