Dapper Labs, one of the foremost companies in the NFT industry, has partnered with blockchain intelligence company, Chainalysis, to improve its security in the NFT business. The NFT-based firm will be using the insights of Chainalysis to have a clearer understanding of each and every one of its users’ transactions. Even more, it’ll be able to determine the purpose of each transaction, thereby helping to detect money laundering cases, and at times, attempts to manipulate the market.
Dapper Labs to Use Chainalysis’ Solutions to Improve Monitoring
Dapper Labs, renowned for notable projects like NBA Top Shots and Cryptokitties, has partnered with Chainalysis, to improve monitoring of transactions involving its products. The company is entering into the partnership with hopes of having a better understanding of what users are doing with its products. From the look of things, the company will now be able to see if their products are indeed being leveraged by bad users for illegal purposes.
In recent times, NFTs have truly gotten a bad name, and it’s a bit understandable. A number of the crypto community members are always alleging that NFTs are being used to launder money, and it’s mostly because if the outrageous, and sometimes ridiculous prices of some of these NFTs. Dapper Labs has now admitted to the fact that there’s serious need for more awareness. The firm also hopes to make their products more secure for anyone wishing to benefit from NFT markets.
NFT Boom and Chainalysis Weapons
For long, NFTs had been largely ignored for their low trading volumes, however, all that changed this year. With over $1 billion volume of NFT projects traded, a lot of questions are now being raised regarding the legitimacy of the funds being moved in the market.
According to Dapper Labs, the company will be using two different Chainalysis tools. The first tool is called Chainalysis KYT (Know Your Transaction). With KYT, the company can easily flag illicit and risky transactions in real-time, alerting Dapper Labs of any suspicious activities at the moment it’s happening. The other tool is the Chainalysis Reactor. This will allow the company to make inquiries and properly investigate into any transaction.