Business News Report
February 15, 2024

Chainlink and Telefónica Partner to Enhance Web3 Security and Prevent SIM Swapping Attacks

In Brief

Chainlink partnered with Telefónica to enhance security measures against Web3-related hacks including preventing “SIM Swap”attacks.

Chainlink and Telefónica Forge Alliance to Enhance Web3 Security and Prevent SIM Swapping Attacks

Decentralized blockchain oracle network Chainlink (LINK) partnered with Telefónica, Spain’s largest mobile carrier and the fourth-largest telecommunications company in European Union. The new collaboration is focused on enhancing security measures against Web3-related hacks and exploits, including preventing “SIM Swap” attacks.

The partnership aims to enhance security for smart contracts that interact with various Application Programmable Interfaces (APIs) on the “GSMA Open Gateway.” The GSMA, comprising over 1,000 mobile operators and businesses, initiated the GSMA Open Gateway project to introduce APIs, facilitating the integration of telecom technologies into the Web3 ecosystem.

According to the written statement, the collaboration represents a notable advancement in incorporating telecommunications capabilities into the blockchain industry. Furthermore, it highlights the necessity for secure oracle networks to provide real-world data on-chain. The interconnected ecosystem will allow for augmenting the functionality and advancing the security of Web3 applications for a more resilient and verifiable digital landscape.

One of the initial applications of this initiative is to mitigate exploits, including “SIM swap,” a hacking method that relies on identity theft and fraudulent impersonation of a financial account holder.

“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,” said the written statement.

The initial GSMA Open Gateway API, appropriately named SIM swap, is set to be introduced in Brazil by Telefónica. This implementation aims to provide an additional layer of security to blockchain transactions in the region.

Surge in SIM Swapping Attacks Rattles Web3 Sector 

The Web3 industry has experienced a growing incidence of SIM swapping attacks. A notable instance occurred in 2022 when $400 million was fraudulently taken from Sam Bankman-Fried’s FTX exchange during its collapse.

Recently, another high-profile case featured Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC), who also experienced a “SIM swap” attack. The incident resulted in a misleading post on social media platform X, falsely claiming the approval of spot Bitcoin exchange-traded funds (ETFs), causing a brief disruption in the cryptocurrency market as many anticipated a decision from the commission regarding the approval of investment products. 

The new collaboration between Chainlink and Telefónica represents a significant stride in fortifying the security of Web3 applications, ultimately contributing to the resilience and verifiability of the digital landscape.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles
Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

Hot Stories
Join Our Newsletter.
Latest News

The Calm Before The Solana Storm: What Charts, Whales, And On-Chain Signals Are Saying Now

Solana has demonstrated strong performance, driven by increasing adoption, institutional interest, and key partnerships, while facing potential ...

Know More

Crypto In April 2025: Key Trends, Shifts, And What Comes Next

In April 2025, the crypto space focused on strengthening core infrastructure, with Ethereum preparing for the Pectra ...

Know More
Read More
Read more
Web3 On-Chain Data Insights: In April, Solana Tops Activity, Ethereum Sees Capital Inflows, Bitcoin Shows Structural Rebound
News Report Technology
Web3 On-Chain Data Insights: In April, Solana Tops Activity, Ethereum Sees Capital Inflows, Bitcoin Shows Structural Rebound
May 9, 2025
Exploring AI Revolution In Web3: Decentralized AI, Data Ownership, And The Road Ahead
Hack Seasons News Report Technology
Exploring AI Revolution In Web3: Decentralized AI, Data Ownership, And The Road Ahead
May 9, 2025
The Future Of AI Agents: Innovation, Challenges, And Opportunities
Hack Seasons News Report Technology
The Future Of AI Agents: Innovation, Challenges, And Opportunities
May 9, 2025
Adidas, Binance, And Coinbase: Major Crypto Partnerships Of May 2025
News Report Technology
Adidas, Binance, And Coinbase: Major Crypto Partnerships Of May 2025
May 9, 2025