Some of the biggest IT companies, including Meta, Netflix, Google, Isovalent, Microsoft, and others, together formed the eBPF foundation on August 12, 2021. The brief of this was discussed in the <a href="https://ebpf.io/summit-2021/">eBPF Summit</a>, a virtual event conducted during August 18-19, 2021.Linux divides its space into two parts: the user space and the kernel space. eBPF, extended Berkeley Packet Filter, is a technology that allows Linux programs to run their codes within the kernel. It previously has been used to construct networking, debugging, tracing, firewalls, and other types of programs.The eBPF FoundationThe need for foundation arises as several eBPF-based projects (both ongoing and future) will be adopting this technology. The eBPF foundation is established keeping in mind the vision and the bright future that eBPF holds. It will establish a clear roadmap while having a well-maintained core of eBPF. The foundation will manage funds in the way of raising, budgeting, and allocation to support various open source, open data, and open standard programs relating to this technology.The <a href="https://ebpf.io/foundation/">eBPF foundation</a> will set up the eBPF steering committee to pave its technical direction. One of the primary objectives of the eBPF foundation would be to extend the capabilities of eBPF and explore its potential beyond LINUX.The foundation would be the base on which the open-source eBPF project and tech would be built. They would nurture the community through various activities, summits, and collaborative events that would drive the community's growth even further.eBPF Foundation Committee MembersAs per the <a href="https://ebpf.io/charter/">charter </a>of the foundation, the members would be composed of the platinum, silver, and associate member class. All members have to be corporate members at the Linux Foundation to participate in the Directed Fund. All participants of the directed fund shall benefit from the privileges and undertake the responsibilities as mentioned in the charter.The Platinum members will be entitled to appoint a representative to the governing board and any other committee except the BSC or any other committee established by the BSC. Currently, this class comprises of the following corporates (all members in the foundation might be subject to change with time, for the latest update visit the foundation page):<ul><li>Meta</li><li>Google</li><li>Isovalent</li><li>Microsoft</li><li>Tigera</li><li>Huawei</li><li>Crowdstrike</li></ul>The Silver class members will be entitled to elect one representative (up to three representatives allowed) to the governing board for every five silver members. There will always be at least one representative, even if the members are less than five in this class. Currently, this class comprises of the following corporates:<ul><li>Netflix</li><li>DaoCloud</li><li>Datoms</li><li>FutureWei</li></ul>The Associate Member class is limited to the associate class of the Linux foundation. There may be specific criteria for the associate members to join the directed fund.Members will have a seat in directed fund meetings, events, initiatives, and other activities.eBPF Foundation Member QuotesMetaChris Mason, Kernel Maintainer and Engineering Director at Facebook, expressed his gratitude to the dedicated developers and maintainers for their tireless work as eBPF has played a critical role in accelerating kernel development. He said that they're excited to support the development of the eBPF community, supporting them to accomplish the tools they need to power the upcoming generation of Linux system development.GoogleChris DiBona, director of open source at Google, stated that she was excited to hear about the LINUX foundation deciding to host eBPF. She also commented that eBPF will have a major influence in the future of networking for the Linux kernel and that Google is pleased to be a part of the evolution standard created by eBPF.What Does The Future Hold?Languages such as JavaScript have made web browsers programmable. It allows you, as a user, to benefit from the latest innovations without installing the new version. eBPF will make operating systems programmable the same way JavaScript and other programming languages made web browsers programmable. It unlocks an un-imaginable potential for innovation in the future, just like how web browsers have become a standard platform for most applications. It allows developers to embed programs in all forms of software (including the OS kernel) with ease and efficiency.Currently, the growth of the eBPF is limited to a specific area, but with time it could be much more widely used.

Kunal N Mehta

Is eBPF Foundation Molding the Future of Infrastructure Software Space?

Web 3.0 is the 'new gen' internet that would make the internet space intelligent or evolve it to near-human intelligence using various AI tools. Web 3.0 will be modified to provide the best services to its user. It would be efficient in content creation and making decisions that would involve both human and machine intelligence.Web 3.0 has three components; Artificial Intelligence (AI), Internet of things (IoT), and blockchain technology. Artificial intelligence decodes and filters data helping the user after providing the aptest online results. IoT supports the interoperability layer of web 3.0 by connecting the internet to smart devices and more. Blockchain makes the internet a decentralized storage space for data and builds our faith in privacy.The key features of web 3.0 are AI, 3D Graphics, Semantic web, and Ubiquity.<h3 id="okay-so-how-is-web-30-connected-with-crypto-and-blockchains">Okay, so how is web 3.0 connected with crypto and blockchains?</h3>Web 3.0 is the rebranding of crypto and blockchain. Now you can do a few things with the blockchain, including digital currencies, trading of digital art, creating an avatar, and life in a metaverse, without having supervision or centralized authority keeping an eye. It is still an evolving concept, but soon blockchain will be a prominent foundation in all areas such as Defi. At the moment, Web 3.0 consists of crypto, blockchain, and NFTs, and soon Defi will be an evolving concept. The possibilities that Web 3.0 will bring are endless but theoretical.NFTs are the current product of web 3.0 that is vastly popular. Cryptocurrencies primarily used blockchain back in 2009. NFTs were supposed to be a side product, but with web 3.0, NFT is now a primary product of blockchain.Web 3.0 is known to be the new hot buzzing term. Web 3.0 is a topic of discussion in the industry. Although it is an emerging concept, Web 3.0 offers a vast spectrum of technologies such as cryptocurrencies, DAOs, and digital assets.Elon Musk, on 2nd December 2021, tweeted ? "Web3 sounds like bs"On 21st December 2021, Jack Dorsey tweeted ? "You don't own "web3". The VCs and their LPs do. It will never escape their incentives. It's ultimately a centralized entity with a different label. Know what you're getting into"On 21st December 2021, Elon Musk tweeted ? "Has anyone seen web3? I can't find it."Bill Detwiler, the TechRepublic editor in chief, said that keeping aside the hype for web3, the blockchain technologies that back it is the real and most powerful tools made exclusively for the enterprise.<h3 id="web-30-and-businesses">Web 3.0 and Businesses</h3>Web 3.0 is going to affect businesses vastly based on how they operate. It shall offer organizations a transparent and user-centric approach. There will be a revolutionary change in how the organization processes the user's data.Businesses will open their technical space to the blockchain, new and old businesses can benefit from this. Once blockchain is an easier-to-use system, organizations can use it for apps and websites with everything made transparent and open to access for all.<h3 id="conclusion">Conclusion</h3>I am sure most of you would ask me what happened to web 2.0 and web 1.0, or if it even existed. Web 1.0, popularly known as static web, was prevalent from 1989 to 2005. Web 1.0 lacked algorithms that made it difficult to swap between pages, which made it difficult for users to find relevant information.Web 2.0 is currently running the internet. YouTube, Facebook, Wikipedia, and so on are platforms that use web technologies such as Javascript, HTML5, CSS3, etc. to make the internet space more interactive. Web 2.0 is also known to be the social web.Web 3.0, at least theoretically, has a lot of pros over cons. Blockchain will be used across various platforms such as Banking, Social media, Currency exchange services, Messaging platforms, Data and Cloud storage, Streaming services, Insurance services, Browsers, etc. All this will form web 3.0. Web 3.0 only exists in theory and in the Twitter space, where it comes up occasionally.Web 3.0 will come into the picture but not soon. It might be an elaborate process until people start understanding the process of blockchain works and then start implementing it.

Web 3.0, from Crypto and Blockchain to NFTs.

After all the attention NFTs got during 2021, people have started to lose interest in NFTs, and metaverse in 2022 says the report by the Google trend. Towards the beginning of 2022, NFTs and metaverse appeared on searches more than cryptocurrencies. The hype for NFTs truly began when Facebook decided to rename its branding as Meta.The word ?NFT? was looked up more frequently from Singapore, Hong Kong, China, Philippines, Canada, etc. Metaverses gained immense popularity in Turkey, China, Singapore, Cyprus, and Lebanon. The above was according to the report published by Google as per Google trend.There are various reasons for this depletion in interest. Some reports show a decline in the sales volume of NFTs. As per the data, NFT sales at the beginning of February were more than 376,000, but in the last few days, it dropped below 100,000. There could be various reasons for such a drop.<h3 id="what-could-be-the-possible-cause-for-decline">What could be the possible cause for decline?</h3>As per our analysis, here are some possible causes for this decline:Wash trading and inflation scams: Wash trading and inflation scams are being witnessed in the NFT market. These are done to make additional profits by over-trading a specific NFT. Read <a href="https://techfastly.com/is-wash-trading-the-future-of-nft-scam/">this</a> article to understand the wash trading scenario in the NFT market.Money laundering: Money laundering has been reported in the NFT market space, although it is seen in smaller volumes. Money laundering is the most indulged activity by cybercriminals to make best use illicit funds by buying and selling NFTs.Change of mind: NFTs gained immense popularity from the very start. It was the ?new cool?. Celebrities used it to increase their fan following, corporates used it as a medium of marketing, and artists used it to display their art and skill.People losing interest temporarily doesn?t necessarily mean that art lost its value. Maybe it?s just an impact of Russia invading Ukraine, or it?s just another depression in the market.Increase in regulations by various countries: NFTs and metaverse have been recognized as instruments of investments and shall be subject to tax with furthermore regulations. A similar trend was witnessed in cryptocurrencies with regulations imposed on them.Various other reasons include lack of investors, shortage of creators, unreasonable gas fees, and environmental concerns regarding the amount of pollution it might cause.<h3 id="how-should-you-invest-in-nfts-cautiously">How should you invest in NFTs cautiously?</h3>Investment in NFTs might seem risky at the moment considering the sudden decline in interest. Although this seems to be on the temporary side, here are some tips you can keep in mind while investing in NFTs:Buy cheap NFTs: There are several NFTs that are available for a lower cost. You can use these to build your portfolio, it might cost you around a few hundred dollars, but can end up getting you millions.Added unique features: NFTs with additional features have unique token properties, these features tend to drive up the price of the NFT. Sometimes these features can be expensive that might attract scammers.Learn to accept losses and failures: Losing money is common when investing in NFTs. There is a higher rate of failure when it comes to NFTs. But, this doesn?t mean you should accept losses on most of your investments. Your losses should be set off with profits from high-value investments.Invest in trendsetters: Trendsetters are the NFTs that are first created by people who try their hand in the market. NFTs of this sort grow in value as the artist gains fame with time. These are low investments at first, but can be rewarding once they raise in value.Fractional ownerships: <a href="https://postergrind.com/can-nfts-have-multiple-owners-the-facts-explained/">Fractional</a> ownerships of NFTs are investments where you can own a tiny proportion of high-value NFTs and can sell them when they raise in value.Don?t panic: There are many short-term fluctuations in every market. It is advisable not to panic in such situations as they lead to poor decision-making.Avoid fruitless investments: Fruitless investments are those that have no value in the future. They have a momentary hype that runs on short flames. If you are looking for a quick way to make profits then this might be your thing. There are several types of NFTs that might not be the best long term investment ideas, they are:a) NFTs from unknown artists: NFTs from such artists can?t be trusted as they might be frauds trying to sell you copied work or hackers trying to steal your stuff by selling your corrupt tokens. Do not trust any unknown seller until they provide something trustworthy.b) NFTs from celebrities.c) Oversaturated NFTs.<h3 id="conclusion">Conclusion.</h3>The NFT market might be at a temporary downfall because of all the things going on. There show very few signs of downfall. It is in your best interest to be updated with the market trend and value your investments accordingly.

Are NFTs just a fad or will they redefine digital art?

The growth of the Defi ecosystem has been possible because of how popular NFTs grew. Holding or trading of NFTs and other crypto assets has become effectively standard in recent times. In all this hype about NFTs and Defi, the custodial and non-custodial NFT discussion has grown significantly in consideration of the massive scale adaptation of NFTs.Until recently, there was very little to no chatter about the custodianship of your NFTs, so why now? Well, the answer is quite simple, it is to know who controls your NFTs and crypto-assets. Before we dive deep into understanding the differences, let's understand how your crypto wallets and the custodianship of your crypto assets are linked.<h3 id="importance-of-crypto-wallets-for-custodianship">Importance of Crypto Wallets for Custodianship</h3>A crypto wallet, like any other wallet, is used as a store of value. You can use the wallet to make transactions on decentralized applications. There are two main aspects of a wallet, the private key, and a public key.A public key is used to generate an address for the parties involved in the transaction to send and receive cryptocurrency. The private key is something like a password that is used for authentic transactions when a sender wants to send cryptocurrency or <a href="https://techfastly.com/how-to-eliminate-nft-deployment-costs-and-smart-contract-hassles/">NFTs</a>.Custodian services are where the private key of your wallet is held with someone else. The extent of authority is decided by you, the owner of the wallet. You can grant them complete custody or partial custody and their right depending on how you see fit. Non-custodian services are where you hold the private key, and you have all the authority in regards to how you want to utilize the crypto assets you own.<h3 id="custodian-vs-non-custodian-nfts">Custodian vs. Non-custodian NFTs</h3>Let's talk about the difference between the two from various views.<ul><li>Definition: The definition of the two is a basic fundamental aspect of comparison as NFTs stored in a custodial wallet are custodial NFTs, and the ones stored in the non-custodial wallets are non-custodial NFTs. In the case of a custodial NFT, you need to authorize the service provider (a third-party custodian) to control your NFTs. Whereas in the case of non-custodial NFTs, you enjoy the complete authority of your NFTs.</li><li>Purchasing of NFTs: In the case of custodial NFTs, your purchasing power depends based on the control you have over your NFTs. You can purchase custodial NFTs from marketplaces that manage your private keys. The best way to purchase Non-custodial NFTs is by purchasing them from a decentralized platform.</li><li>Convenience: Custodial NFT holders must register their accounts and complete their KYC verification with the exchange. Non-custodian holders don't need an account, and since there is no account, they don't have to get themselves verified.</li><li>Transaction cost: Custodian NFTs have higher transaction costs since the custodian's involvement. Non-custodian NFTs have minimal transaction costs as they are directly linked to your wallets.</li><li>Security: Security is a prominent point of difference when it comes to the comparison of custodial and non-custodial NFTs. The custodial NFTs always depend on how secure the custodian's infrastructure is since the service provider holds the private keys. Non-custodian NFTs are different as it uses personalized security methods that can be better and improved with time.</li><li>Support: Custodial NFTs have the support system provided by the service provider. They come equipped with a standard measure to help you in case you lose your private keys. Non-custodial NFTs have limited support as if you lose your private key, there are fewer measures to retrieve it. </li></ul><h3 id="which-is-better-custodian-nfts-or-non-custodian-nfts">Which Is Better: Custodian NFTs or Non-Custodian NFTs?</h3>After analyzing the key points of difference, it is evident that custodian and non-custodian NFTs are customized for the users. There are pros and cons to using both.Custodian NFTs offer a better support system in case you misplace your private key, but the downside is that you'll have to follow the procedure for the creation of an account, pay higher transaction charges, have limited purchase power, and abide by available security standards.Non-custodian NFTs have a better edge when it comes to lower transaction costs, no restriction on purchasing power, and ease of transaction. With non-custodian NFTs, you will need to be careful when it comes to the selection of security standards and private keys.

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Crypto

Does the Custodianship of Your NFTs Matter?

<div>&nbsp; Some of the biggest IT companies, including Meta, Netflix, Google, Isovalent, Microsoft, and others, together formed the eBPF foundation on August 12, 2021. The brief of this was discussed in the eBPF Summit, a virtual event conducted during August 18- 19, 2021.<o:p></o:p>&nbsp;Linux divides its space into two parts: the user space and the kernel space. eBPF, extended Berkeley Packet Filter, is a technology that allows Linux programs to run their codes within the kernel. It previously has been used to construct networking, debugging, tracing, firewalls, and other types of programs.<o:p></o:p>&nbsp;The eBPF Foundation<o:p></o:p>&nbsp;The need for foundation arises as several eBPF-based projects (both ongoing and future) will be adopting this technology. The eBPF foundation is established keeping in mind the vision and the bright future that eBPF holds. It will establish a clear roadmap while having a well-maintained core of eBPF. The foundation will manage funds in the way of raising, budgeting, and allocation to support various open source, open data, and open standard programs relating to this technology.<o:p></o:p>&nbsp;The eBPF foundation will set up the eBPF steering committee to pave its technical direction. One of the primary objectives of the eBPF foundation would be to extend the capabilities of eBPF and explore its potential beyond LINUX.<o:p></o:p>&nbsp;The foundation would be the base on which the open-source eBPF project and tech would be built. They would nurture the community through various activities, summits, and collaborative events that would drive the community's growth even further.<o:p></o:p>&nbsp;eBPF Foundation Committee Members&nbsp;<o:p></o:p>&nbsp;As per the charter of the foundation, the members would be composed of the platinum, silver, and associate member class. All members have to be corporate members at the Linux Foundation to participate in the Directed Fund. All participants of the directed fund shall benefit from the privileges and undertake the responsibilities as mentioned in the charter.&nbsp;<o:p></o:p>&nbsp;The Platinum members&nbsp;will be entitled to appoint a representative to the governing board and any other committee except the BSC or any other committee established by the BSC. Currently, this class comprises of the following corporates (all members in the foundation might be subject to change with time, for the latest update visit the foundation page):&nbsp;<o:p></o:p><ul type="disc" style="margin-bottom: 0cm; color: rgb(0, 0, 0); font-size: medium; margin-top: 0cm;"><li class="MsoNormal" style="margin: 0cm; line-height: normal; font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(14, 16, 26);">Meta<o:p></o:p></li><li class="MsoNormal" style="margin: 0cm; line-height: normal; font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(14, 16, 26);">Google<o:p></o:p></li><li class="MsoNormal" style="margin: 0cm; line-height: normal; font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(14, 16, 26);">Isovalent<o:p></o:p></li><li class="MsoNormal" style="margin: 0cm; line-height: normal; font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(14, 16, 26);">Microsoft<o:p></o:p></li><li class="MsoNormal" style="margin: 0cm; line-height: normal; font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(14, 16, 26);">Tigera<o:p></o:p></li><li class="MsoNormal" style="margin: 0cm; line-height: normal; font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(14, 16, 26);">Huawei<o:p></o:p></li><li class="MsoNormal" style="margin: 0cm; line-height: normal; font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(14, 16, 26);">Crowdstrike<o:p></o:p></li></ul>&nbsp;The Silver class members&nbsp;will be entitled to elect one representative (up to three representatives allowed) to the governing board for every five silver members. There will always be at least one representative, even if the members are less than five in this class. Currently, this class comprises of the following corporates:&nbsp;<o:p></o:p><ul type="disc" style="margin-bottom: 0cm; color: rgb(0, 0, 0); font-size: medium; margin-top: 0cm;"><li class="MsoNormal" style="margin: 0cm; line-height: normal; font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(14, 16, 26);">Netflix<o:p></o:p></li><li class="MsoNormal" style="margin: 0cm; line-height: normal; font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(14, 16, 26);">DaoCloud<o:p></o:p></li><li class="MsoNormal" style="margin: 0cm; line-height: normal; font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(14, 16, 26);">Datoms<o:p></o:p></li><li class="MsoNormal" style="margin: 0cm; line-height: normal; font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(14, 16, 26);">FutureWei<o:p></o:p></li></ul>&nbsp;The Associate Member class&nbsp;is limited to the associate class of the Linux foundation. There may be specific criteria for the associate members to join the directed fund.&nbsp;<o:p></o:p>Members will have a seat in directed fund meetings, events, initiatives, and other activities.&nbsp;<o:p></o:p>&nbsp;eBPF Foundation Member Quotes<o:p></o:p>&nbsp;Meta&nbsp;<o:p></o:p>Chris Mason, Kernel Maintainer and Engineering Director at Facebook, expressed his gratitude<o:p></o:p>to the dedicated developers and maintainers for their tireless work as eBPF has played a critical role in accelerating kernel development. He said that they're excited to support the development of the eBPF community, supporting them to accomplish the tools they need to power the upcoming generation of Linux system development.<o:p></o:p>&nbsp;Google<o:p></o:p>Chris DiBona, director of open source at Google, stated that she was excited to hear about the LINUX foundation deciding to host eBPF. She also commented that eBPF will have a major influence in the future of networking for the Linux kernel and that Google is pleased to be a part of the evolution standard created by eBPF.<o:p></o:p>&nbsp;What Does The Future Hold?<o:p></o:p>Languages such as JavaScript have made web browsers programmable. It allows you, as a user, to benefit from the latest innovations without installing the new version. eBPF will make operating systems programmable the same way JavaScript and other programming languages made web browsers programmable. It unlocks an un-imaginable potential for innovation in the future, just like how web browsers have become a standard platform for most applications. It allows developers to embed programs in all forms of software (including the OS kernel) with ease and efficiency. Currently, the growth of the eBPF is limited to a specific area, but with time it could be much more widely used.<o:p></o:p></div>

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Big Data

Wash trading affects the whole ecosystem as the circulation of overvalued NFTs create an inequitable marketplace that becomes fatal for future growth because of weakened faith in the system.

Are Wash Trading Scams A Bad Omen For the NFT 'Image'?

The NFT marketplace saw a big boom in 2021, with the sales of NFTs skyrocketing even further. The total NFT turnover for 2020 was estimated to be about $106 million, which further shot up to a stunning $44.2 billion. As per Chainalysis, a blockchain firm, many players in the NFT marketplace are ?making a killing? with wash trading.<h3 id="what-is-wash-trading">What is Wash Trading?</h3>Wash trading is a trading activity in which the seller is on both sides of the transaction; yes, you heard it right, the buyer and the seller are the same people. Wash trading is an unethical practice done to inflate the asset value in the eyes of others. The primary reasons for wash trading, as stated by <a href="https://blog.chainalysis.com/reports/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering/">Chainalysis </a>were:1. To artificially inflate the value of NFTs.2. Using wash trading in NFTs as a mode to launder money.<h3 id="wash-trading-to-inflate-nfts">Wash Trading to Inflate NFTs</h3>As per the report by Chainalysis, there were a total of 262 users who sold to self-financed addresses over 25 times. The figure consisted of 110 profitable trades and 152 unprofitable ones. There were 110 profitable trades with a whopping $8,875,315 in profits alone, and the unprofitable trades came down to $416,984. The profit after dwarfing losses comes down to $8,875,315.<figure class="kg-card kg-image-card kg-card-hascaption"><img src="https://iaxds62ruoojbg1k4180.cleaver.rocks/images/posts/bc2946f75a9d88660f34bc11d14df13a.png" class="kg-image" alt loading="lazy" width="759" height="393" srcset="https://techfastly.com/content/images/size/w600/2022/03/self-financed.PNG 600w, https://iaxds62ruoojbg1k4180.cleaver.rocks/images/posts/bc2946f75a9d88660f34bc11d14df13a.png 759w" sizes="(min-width: 720px) 720px"><figcaption>Self financed statistics as per Chainalysis&nbsp;</figcaption></figure>Wash trading might seem to be an easy way to drive up NFT?s value, it is not a foolproof plan, stated Kimberly Grauer, director of research at Chainalysis. It is because of the gas fees charged for every Ethereum transaction. As per the report, there were 830 self-financed transactions. The seller made prolific attempts to generate profitable trades through wash trading. The total money spent on gas fees was $35,642, and the revenue from sales was a mere $27,258. It shows the desperate attempt to indulge in more self-financed trades, only to recover costs.<h3 id="how-does-money-laundering-happen-via-wash-trading">How Does Money Laundering Happen via Wash Trading?</h3>As per the Chainalysis blog, money laundering activities are small, but they?re still visible in the <a href="https://techfastly.com/before-buying-an-nft-read-the-terms-carefully/">NFT</a> market. Money launderers legalize their money through art. The transfer of paintings is easy as compared to others, art can be subjectively priced, and they use several loopholes in the taxation system meant for art collectors.<figure class="kg-card kg-image-card kg-card-hascaption"><img src="https://iaxds62ruoojbg1k4180.cleaver.rocks/images/posts/09ed42a8e5086a93ae248c930be9040a.png" class="kg-image" alt loading="lazy" width="782" height="424" srcset="https://techfastly.com/content/images/size/w600/2022/03/money-laundering.PNG 600w, https://iaxds62ruoojbg1k4180.cleaver.rocks/images/posts/09ed42a8e5086a93ae248c930be9040a.png 782w" sizes="(min-width: 720px) 720px"><figcaption>Money laundering statistics as per Chainalysis.</figcaption></figure>As per the report, cybercriminals use illicit funds to purchase and sell NFTs. In the third and fourth quarters of 2021, there was a significant rise in funds transferred from scam-associated accounts to NFT marketplaces. The total funds transferred only in the third and fourth quarter of 2021 was about two and a half million. Cryptocurrency-based money laundering witnessed in 2021 was about $8.6 billion.<h3 id="what-does-this-mean-for-the-nft-ecosystem-and-what-are-nft-platforms-doing-to-counter-it">What Does This Mean for the NFT Ecosystem, and What Are NFT Platforms Doing to Counter it?</h3>NFT platforms let everyone sell NFTs by simply linking their wallet and paying the relevant fee without creating an account. Wash trading affects the whole ecosystem as the circulation of overvalued NFTs create an inequitable marketplace that becomes fatal for future growth because of weakened faith in the system.It is believed that there might be a rise in such illicit activities. The Chainalysis blog post stated that they are equipped with software that can trace back self-financed transactions and that they have been tracing such addresses. There are still no laws against wash trading for NFTs like in some securities and derivatives.It is the responsibility of <a href="https://twitter.com/rarible/status/1288609216069017600?lang=fr">NFT platforms</a> to build up regulations in the best interest of their users.Dapper Labs, an organization that provides NFT-based products and decentralized applications, is reported to be working with Chainalysis to keep wash trading and other unethical activities in check.OpenSea, published a blog post on the 17th of Jan informing about the formation of an ?NFT Security Group? the members of which will share and educate about ?vulnerable? reports that will be fixed before being announced publicly so the users are not impacted by any problems. The members will work towards creating solutions to ensure better security revolving around Ethereum blockchain consensus, smart contracts, wallets, and metadata.Alex Salnikov, co-founder and head of product at Rarible, explained to <a href="https://cointelegraph.com/news/chainalysis-report-finds-most-nft-wash-traders-unprofitable">Cointelegraph </a>that Rarible would be tackling this issue by stopping the RARI token distribution, an incentive program exclusively for Rarible users; a decision by the Rarible decentralized autonomous organization. Due to this, he said, ?the issue is no longer relevant for our marketplace?. Rarible has taken up additional measures for the verification of its users.Scams such as wash trading will rise irrespective of the controls and measures implemented by the platforms and decentralized authority. There might be a rise in such illicit activities before there is an industry solution, stated Grauer.You as a user of these platforms might have to perform extra precautions to be safe from such scams and fraudulent activities.

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