PiChain Ghana

Telefónica Teams Up With Chainlink to Provide Security Against ‘SIM Swap’ Hacks

The partnership will be a “significant step” in integrating telecom capabilities into the blockchain technology, the firms said.
  • The partnership will help provide an added layer of security to blockchain transactions.
  • Telefónica will introduce the security measure in Brazil.

One the world’s largest telecommunication services providers, Telefónica (TEF), is partnering with decentralized oracle network Chainlink (LINK) to ensure security against Web3-related hacks and exploits, including “SIM Swap” attacks.

The partnership will provide security for smart contracts that will connect with other Application Programmable Interfaces (APIs) on the “GSMA Open Gateway,” according to a statement published on Thursday. GSMA – an organization that consists of over 1,000 mobile operators and businesses – started the GSMA Open Gateway, which introduced APIs to help bring telecom technologies onto the Web3 ecosystem, the statement said.

“This collaboration marks a significant step in integrating Telco capabilities into the blockchain industry and demonstrates the need for secure oracle networks to deliver real-world data on-chain,” the statement said. “This interconnected ecosystem enhances the functionality and security of Web3 applications, contributing to a more robust and verifiable digital landscape,” the statement added.

One of the first use case of the initiative will be to prevent exploits such as “SIM Swap” – a form of hacking tool based on identity theft and false impersonation of a financial account holder. The scheme has been used increasingly in the Web3 industry, and one of the recent high-profile cases of such fraud has been a theft of $400 million from Sam Bankman-Fried’s FTX as the exchange was collapsing in 2022.

The first GSMA Open Gateway API – aptly called SIM SWAP – will be introduced in Brazil by Telefónica to add a layer of extra security to blockchain transactions.

“This integration not only enhances transaction security but also introduces an extra layer of security to blockchain transactions by enabling smart contracts to now make information requests to the API, ensuring that a device’s SIM card has not undergone any unauthorized changes,” the statement said.

Source: coindesk.com

Disclaimer: This is a press release post. PiChain Ghana does not endorse or is responsible for any content, accuracy, quality, advertising, products, or other materials on this page. The image used in this article is for informational purposes only and is provided to us by a third party. Readers should do their research before taking any actions related to the company.


Leave a Comment

Your email address will not be published. Required fields are marked *