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Chapter 1 of 7Defence1 min read · 1 exhibits

Paradigm Shift: Ukraine's Battlefield Revolution

How has the economics of combat changed?

Chapter summary

Cheap drones have collapsed the cost of finding and striking targets. The report uses a NATO exercise and three years of combat to illustrate the shift.

Key takeaways

  1. 1

    The report cites roughly $300,000 of drones against $100M+ of conventional forces in a NATO exercise.

  2. 2

    Ukraine's three-year evolution is presented as the template.

  3. 3

    Kill chains have shortened dramatically.

At a glance

Exhibit 1.1

In the exercise the report cites, $300,000 of drones defeated forces worth over 300 times as much

Cost of the forces involved · $

Conventional forces$100M+
Drones used~$300,000
Source: Ukraine Battlefield Lessons: Critical Defence Investments 2026–2035, Setcoin Research (February 2026)

The chapter · 93 words · 1 exhibits

1.1 The NATO Exercise Reality Check

Key Finding from NATO Drills:

  • 10 Ukrainian troops eliminated 2 NATO battalions (1,600+ soldiers)
  • Method. Coordinated drone swarms, electronic warfare, AI-powered targeting
  • Cost asymmetry. ~$300,000 in drones vs $100M+ in conventional forces
  • Time to effect. Hours, not days
  • Traditional force structures are obsolete

What This Means:

"NATO has seen the future and is unprepared" - WSJ

The exercise validated Ukraine's 3-year combat evolution:

  • Mass over precision (affordable attrition warfare)
  • Speed over protection (disposable systems)
  • Autonomy over human control (AI decision-making)
  • Electronic spectrum dominance over kinetic supremacy
Next →

Combat-proven Critical Technologies (Immediate Investment)

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