Telefónica integrates Chainlink to counter hacks like “SIM Swap”

Telefónica has announced a new partnership with Chainlink (LINK), to ensure security against hacks, such as “SIM Swap”. 

Telefónica and Chainlink: increased security against SIM Swap hacks

Telefónica, the renowned telecommunications service provider, has announced its partnership with the decentralized oracle network Chainlink.

The goal is to increase security against hacks and exploits related to Web3, including “SIM Swap” attacks.

With “SIM Swap”, we mean a form of hacking based on identity theft and false impersonation of the owner of a financial account. 

Specifically, the Telefónica and Chainlink alliance will enable the secure connection of Web3 smart contracts with other APIs of the GSMA Open Gateway.

The GSMA is an organization that brings together over 1,000 mobile operators and companies and has launched the GSMA Open Gateway: the APIs to help bring telecommunications technologies into the Web3 ecosystem. 

The initiative aims to prevent exploits such as “SIM Swap” through the use of the GSMA Open Gateway SIM SWAP API, which will introduce an additional level of security in blockchain transactions. 

Telefónica with Chainlink Labs leverages Chainlink Functions, the market-leading Web3 connectivity solution, to safely connect any API on GSMA Open Gateway to the Polygon PoS blockchain network. 

On this subject, the press release reads:

“This collaboration marks a significant step in integrating Telco capabilities into the blockchain sector and demonstrates the need for secure oracle networks to provide real onchain data. This interconnected ecosystem enhances the functionality and security of Web3 applications, contributing to a more robust and verifiable digital landscape.”

Telefónica and Chainlink: the first use case of the GSMA Open Gateway API against SIM Swap hacks

The first operator to market the new GSMA Open Gateway API against SIM Swap hacks is Vivo, which is Telefonica Brazil.  

In this regard, Yaiza Rubio, Chief Metaverse Officer at Telefónica, stated: 

“Telefónica is pleased to strengthen our relationship with industry leader Chainlink and to present the first use case of the GSMA Open Gateway SIM Swap API, which positions us as an enabler of Web3 and will allow us to guide developers towards the web of the future.”

Even Johann Eid, Chief Business Officer of Chainlink Labs, has released his comments on the matter: 

“Our collaboration with Telefónica on the OpenGateway initiative extends the ways in which the industry-standard Chainlink platform supports security in the blockchain ecosystem. Bringing Telefónica’s OpenGateway APIs onto the blockchain with Chainlink Functions unlocks new use cases and increased security for our industry, ultimately better protecting users and their assets. We are excited to join Chainlink and leading telecommunications like Telefónica in promoting the vision of a verifiable web where users maintain control”.

The report on crypto scams and the new 2024 collaborations of Chainlink

In December 2023, Chainlink had published a preview of its “2024 Crypto Crime Report”. A kind of analysis of crypto scams and their numbers, in anticipation of the new year.

The preview focused particularly on the explosive growth of Approval Phishing, a technique used in romantic scams, which in 2023 alone resulted in the theft of 374.6 million dollars in the crypto sector.  

Stepping away from the scam talk, hacker attacks, and exploits, Chainlink seems to have started its 2024 with a multitude of new partnerships.

Besides the present with Telefónica, the Chainlink oracles have recently been integrated into the PancakeSwap DEX on Arbitrum.

Not only that, Chainlink is also in partnership with Circle, for the implementation of Circle’s cross-chain transfer protocol (CCTP) in its CCIP system. This is a new integration that allows Chainlink to securely manage USDC transfers on different blockchains.