According to a report from CoinDesk, Telefónica (TEF), one of the world's largest telecommunication services providers, has recently announced a new partnership with decentralized oracle network Chainlink (LINK). The main aim of this partnership is to ensure security against Web3-related hacks and exploits, including "SIM Swap" attacks.
According to a statement published on February 15th, this partnership will provide security for smart contracts that will connect with other Application Programmable Interfaces (APIs) on the "GSMA Open Gateway."
GSMA is an organization consisting of over 1,000 mobile operators and businesses and started the GSMA Open Gateway to introduce APIs that would help usher telecom technologies onto the Web3 ecosystem.
"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.
The first focus of this initiative will be to obstruct exploits such as "SIM Swap," which is a form of hacking tool centered around identity theft and false impersonation of a financial account owner. This maneuver has been used more and more in the Web3 industry, and one of the more notable high-profile cases of such fraud was the theft of $400 million from Sam Bankman-Fried's FTX as the exchange was faltering in 2022.
As per the announcement, the first GSMA Open Gateway API, aptly called SIM SWAP, will be introduced in Brazil by Telefónica to add an extra layer of 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.
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