Telefonica and Chainlink Collaborate to Counter SIM Swap Attacks, LINK Token on the Rise

By: Eliza Bennet

Global telecommunication gia, Telefonica, has formed a strategic alliance with Chainlink in a bid to enhance the security of Web3 smart contracts through GSMA Open Gateway APIs, offering better protection against SIM swap incidents. The collaboration serves as an integral progression in merging telecom abilities with the blockchain sector, highlighting the necessity for secure oracle networks for real-world data on-chain deployment.

Chainlink will be infusing its Functions into Telefonica's SIM SWAP API for improved data validation, allowing smart contracts to request information from the API this provides security against unauthorized modifications to a device's SIM card. Additionally, the API extends this primary functionality to strengthen two-factor authentication (2FA) and amplify fraud detection within Web3 decentralized apps (dApps) and DeFi services.

Chainlink, over recent months, has broadened its reach through multiple collaborations with conventional industries like SWIFT, South Korea's Wemade, and the New Zealand Banking Group. Important integrations with blockchain projects like Base and Circle’s USDC stablecoin are also noteworthy. Meanwhile, Chainlink’s LINK token witnessed significant growth, rising by nearly 8% to trade at above $20, which is its highest level since the beginning of this year, securing its place amongst the top digital assets in the market.

However, LINK, despite a minor dip of 0.76%, remains a top player in the industry with a formidable market capitalization of about $11.8 billion.