Recently, the Spanish telecommunications giant Telefonica made headlines by announcing its collaboration with Chainlink. This strategic move is geared towards addressing Web3-related vulnerabilities, such as SIM card fraud. Given the significant impact these vulnerabilities have had on the cryptocurrency sphere, this development is unquestionably welcomed.
The manner in which this collaboration will enhance Web3 security
Telefonica highlighted its plan to incorporate Chainlink, the decentralized Oracle network, as part of its strategy to bolster Web3 security alongside the GSMA Open Gateway. The GSMA Open Gateway is described as a “framework of common network APIs (Application Programming Interfaces) aimed at offering developers universal access to operator networks.”
Telefonica’s integration of Chainlink will facilitate the secure linkage of Web3 smart contracts utilizing the GSMA Open Gateway API. Among the supported APIs within GSMA is SIM SWAP, which marks the inaugural use case in this partnership. This API enables developers to seamlessly incorporate SIM swap functionality into their applications.
In this context, Chainlink, renowned for its role in connecting blockchain-based smart contracts to real-world data through its oracles, will serve as the intermediary, furnishing Web3 applications with data sourced from the SIM swap API. These data encompass critical details such as the date and time of the last SIM change associated with a phone number.
These Web3 applications stand poised to swiftly identify and thwart any attempts at wallet takeover or fraudulent transactions originating from SIM swap attacks. Telefonica emphasizes that this initiative extends beyond transactional security, effectively addressing concerns regarding two-factor authentication (2FA) and fraud detection across Web3 dApps and DeFi services.
Enhancing the Security of Web3
Security breaches remain a pressing issue in the Web3 space, with recent incidents underscoring the urgency. Bitcoinist highlighted a case where the Angel Drainer phishing group siphoned $403,000 from 128 wallets. Notably, SIM swap attacks, targeted by the Telefonica-Chainlink collaboration, caused losses exceeding $13.3 million in four months last year.
Additionally, the FTX breach, resulting in over $400 million in losses, stemmed from a SIM swap where attackers manipulated the details of an FTX employee. Hence, the partnership represents a significant stride forward as industry stakeholders strive to combat these threats effectively.
