What could be the consequences of widespread hacks of exchanges, protocols, ...

[Bitcoin.com97]

It's really alarming this period, just few days we were talking about the casino that was hacked, now this one ,what is really happening, is that the security system is not active, although I know this things has been happening before now ,but the rate at which is occurring is just heart breaking ,the hackers are not joking at all, and there target are on the major exchange and it's working for them ,at this point I won't advice anyone to keep their funds in exchange with the way things are going now . crypto space is not longer safe with the look of things .

I was totally surprised on how this thing happened to the largest exchange, if I may say, this is the biggest hacked on exchanges I have ever experienced, imagine shutting down every USDT activities in the Binance over hours ago, seriously this is so disturbing and alarming this time around, alits of people that made or placed withdrawal yesterday were rejected today, and I noticed this since in the morning yesterday as withdrawal took over one hour before receiving it, I was even doubting may be I made or withdraw to a wrong address, well I believe Binance management would definitely work on this to fix everything as usual. It seems to me that,  almost every year things like this normally happens to an exchanges, but this particular one is something else.

It was very shocking to me , because I wasn't expecting it at all,i wasn't expecting it will be binance, I hope they fix it back ,hackers are really out this period, both Casion s , everyone need to work on there security system to avoid all this stories flying around, every week and month ,hackers are been discussed here because of what is happening, but I believe keeping funds in exchange now is not safe ,who knows there next plan , even many here also save in casino which is not good ,this should be lesson for all now ,before it will lead to something else.

[shinratensei_]

Actually, I have a few key questions:
1. Don't you feel that security in the crypto world is already heading toward zero, even without a quantum hack? The reason is a completely careless attitude toward security - from protocols to infrastructure, from hiring staff to "digital hygiene" rules in the workplace!
2. And the most important question - where could this lead?
I can imagine one very bad scenario: a slide toward purely centralized cryptocurrencies, something like stablecoins or CBDCs, since only they generally allow for stolen funds to be frozen and recovered, and a total loss of trust in any decentralized cryptocurrencies and protocols, causing the real crypto world to "hit rock bottom" and the general public to lose interest in "true" cryptocurrencies.

I can smell shift from loosely programming their contract to be more security minded like how NASA coded program in Jet Propulsion Laboratory (JPL), they followed super strict coding standard to make sure there is no mistake, smart contract have adopted this approach but not fully and maybe there'll be no such thing as randomly outsourced smart contract writing anymore in the future. It's quite expensive lesson to figure out that so many important codes living on the blockchain actually half baked mess.

As for your question

1. It feels like it but I think it's more of a shock to a shift into the AI driven world where anybody can find exploit.

2. I don't believe there is complete lost of trust, the people who preferred to use decentralized currency are the people who know the weakness of centralized system.

[Taricoins]

It seems like everyday their is one hack after another, I largely think this uprising is due to the incorporation of AI into hacking and with this recent surge, it feels like their Is a huge hole this smart people are using.

But the OP's question is consequences of widespread hacks, the answer is a better cyber security measures will be implemented and that leak will be plugged

[Sowat]

It seems like everyday their is one hack after another, I largely think this uprising is due to the incorporation of AI into hacking and with this recent surge, it feels like their Is a huge hole this smart people are using.

But the OP's question is consequences of widespread hacks, the answer is a better cyber security measures will be implemented and that leak will be plugged

I agree with you. Because if we look at the present time, then we can definitely see that a lot of unethical activities are taking place due to the use of AI.‌ But even though it was created for good, some people are misusing it. Due to which people can do many activities using AI. AI is creating better intelligence in humans for hacking purposes.So to speak, the use of AI is increasing a lot these days.

[Dreadboost]

The hack pandemic will not end soon. Let's expect another top exchange hack news before the year's end. I'm not praying for bad things to happen; it's just how things are this period. We can't deny the pandemic isn't real.

Well, Binance has released withdrawals and deposits today. My happiness regarding the Binance case is that people with money in Binance still have the same balance in Binance.

[internetional]

I can imagine one very bad scenario: a slide toward purely centralized cryptocurrencies, something like stablecoins or CBDCs, since only they generally allow for stolen funds to be frozen and recovered

You're effectively conflating two different things here: freezing stablecoins and returning them to their previous owners.

It's in Tether's and Circle's interests to freeze addresses holding large amounts of stablecoins. This means that substantial sums can no longer technically be redeemed, so the issuers won't have to pay out the dollars backing those assets.

Returning those funds to their previous owners, however, is far less beneficial to the issuers. That's why we often hear about funds being frozen, but rarely about them actually being returned.

If people are paying attention to this, they're unlikely to choose stablecoins. Quite the opposite.

[GiftedMAN]

The hack pandemic will not end soon. Let's expect another top exchange hack news before the year's end. I'm not praying for bad things to happen; it's just how things are this period. We can't deny the pandemic isn't real.

Well, Binance has released withdrawals and deposits today. My happiness regarding the Binance case is that people with money in Binance still have the same balance in Binance.

The hack will not end but exchanges needs to advance their securities and the people who handles every expect of their software. If the hackers are using AI related tools to attach them then they need to employ good hackers in their companies that will detect a possible attack so that they can secure every aspect of their wallet to avoid them moving funds before getting noticed if they do not employ good hackers then they will keep facing this risk every now and then because the next one will be massive.

While we commend binance for allowing people have access to their money it is important the people who trust exchanges to hold their funds to learn to hold it by themselves instead of keeping it in an exchange, if the unexpected happens which we don't pray for we don't know if binance will be able to function again before thinking about paying people back.