Spanish telecom giant Telefonica partners with Chainlink for enhanced security
Quick Take
- The two entities will collaborate on utilizing web3 technology for fraud prevention in SIM cards.
Spain-based telecommunications company Telefonica announced a strategic alliance with web3 solution provider Chainlink Labs on Thursday. With the partnership, the two will integrate real-world telecommunications capabilities into blockchain networks for improved security, according to a press release shared with The Block.
The first use case in the partnership will involve the SIM SWAP API, introduced by the Global System for Mobile Communications Association Open Gateway — a mobile network that provides Application Programmable Interfaces for developers. Telefonica is a member of GSMA.
SIM SWAP API checks the last time a SIM card associated with a mobile number has been modified, which is utilized for fraud prevention in individual and banking accounts. Through Chainlink 
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Functions, a web3 developer platform for retrieving data from real-world APIs, the SIM SWAP API will enable developers to verify data from various sources.
The integration of Chainlink’s platform and the SIM SWAP API will offer “an extra layer of security” to blockchain transactions, enabling smart contracts to make information requests to the API. This will help ensure that there have been no unauthorized changes to a SIM card, Telefonica explained in the release.
“Bringing Telefonica’s OpenGateway APIs onchain with Chainlink Functions unlocks novel use cases and greater security for our industry that ultimately better protect users and their assets,” Chainlink Labs’ Chief Business Officer Johann Eid said in the release.
Telefonica, which owns a telecommunications network across Europe and Latin America, has a market capitalization of 20.38 billion euros ($21.8 billion).
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