Chainlink and Telefónica Unite to Fortify Web3 Security and Counter SIM Swapping Threats
In Brief
Chainlink has formed a partnership with Telefónica aimed at strengthening defenses against Web3 cybersecurity threats, particularly in keeping 'SIM Swap' attacks at bay.
A decentralized oracle network designed for blockchain applications Chainlink (LINK) partnered with Telefónica Telefónica stands as the largest mobile network operator in Spain and is also the fourth largest player in the telecommunications sector across the European Union. Their new venture focuses on enhancing security protocols to guard against various Web3-related cyber attacks, especially those involving 'SIM Swap' tactics.
The collaboration is set to elevate security measures for smart contracts interfacing with multiple Application Programmable Interfaces (APIs) facilitated by the 'GSMA Open Gateway.' This initiative, started by GSMA with over 1,000 telecom operators and related businesses, aims to introduce APIs that ease the incorporation of telecommunications into the Web3 framework.
A statement from the partnership underscores this collaboration as a significant step in blending telecommunications with blockchain technology. It brings to light the crucial need for secure oracle networks that can deliver real-world data on-chain. This interconnected framework is essential for enhancing the functionality and security of Web3 applications, promising a robust and reliable digital environment.
One of the first goals of this collaboration is to tackle exploits, particularly those involving SIM swap the infamous hacking method that utilizes identity theft to impersonate financial account holders.
According to the statement, 'This collaboration not only enhances the safety of transactions but also introduces an added layer of security for blockchain operations, allowing smart contracts to request verification from the API to ensure that a device’s SIM card hasn’t been compromised.'
The inaugural GSMA Open Gateway API, aptly named SIM Swap, is scheduled to launch in Brazil through Telefónica. This effort aims to add another layer of protection for blockchain transactions in that area.
Rising Incidences of SIM Swapping Attacks Shake the Web3 Industry
The Web3 sector has seen a notable spike in SIM swapping incidents. One significant case in 2022 involved the fraudulent extraction of $400 million from Sam Bankman-Fried’s FTX exchange during its collapse.
Recently, an attack also affected Gary Gensler, who chairs the U.S. Securities and Exchange Commission (SEC). This attack resulted in a misleading post on social media platform X, incorrectly announcing the green light for spot Bitcoin exchange-traded funds (ETFs), misleading post which briefly unsettled the cryptocurrency market since many investors were anticipating a forthcoming SEC decision regarding new investment products. causing The partnership between Chainlink and Telefónica marks a major advancement in enhancing the security of Web3 applications, ultimately working towards a more resilient and verifiable digital landscape.
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Disclaimer
In line with the Trust Project guidelines Alisa is a passionate journalist at Cryptocurrencylistings, focusing on cryptocurrencies, zero-knowledge proofs, investments, and the broad spectrum of Web3 technologies. With an eye for emerging trends, she provides thorough coverage to keep readers updated and engaged in the fast-paced world of digital finance.
