Spain-based telecommunications giant Telefonica announced that it has established a strategic partnership with web3 solution provider Chainlink Labs.
Telefonica and Chainlink Labs Collaborate for Improved Security
The partnership aims to integrate real-world telecommunications capabilities into blockchain networks to improve security.
The first use case in the partnership will involve the SIM SWAP API introduced by the Global System for Mobile Communications Association Open Gateway (GSMA), a mobile network that provides application programmable interfaces for developers.
SIM SWAP API checks when a SIM card associated with a mobile number was last changed. This is used to prevent fraud on personal and banking accounts.
SIM SWAP API through Chainlink Functions, a web3 developer platform for ingesting data from real-world APIs, will enable developers to validate data from various sources.
The integration of SIM SWAP API with Chainlink's platform will offer an extra layer of security to blockchain transactions.
According to Telefonica's statement, it will help ensure that no unauthorized changes are made to a SIM card by enabling smart contracts to request information to the API.
“Bringing Telefonica's OpenGateway APIs on-chain with Chainlink Functions unlocks new use cases and greater security for our industry that better protects users and their assets,” said Johann Eid, Business Manager at Chainlink Labs.
Telefonica, which has a telecommunications network across Europe and Latin America, has a market value of 20.38 billion euros ($21.8 billion).
This partnership underscores the growing intersection of telecommunications and blockchain technology in enhancing security and preventing fraud.
*This is not investment advice.