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Telefonica (TEF) Unit Inks Entrust Deal, Shields Blockchain Platform

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Telefonica, S.A.’s (TEF - Free Report) subsidiary, Telefonica Tech, has inked an agreement with a Minneapolis, MN-based software company, Entrust, to integrate the latter’s avant-garde nShield hardware security modules (HSMs) into the TrustOS ecosystem. Markedly, TrustOS is Telefonica Tech’s managed blockchain platform.

Blockchain is a type of database that stores valuable data in blocks and are connected in chained form in a sequential order for secure communications. Per the collaboration, both the entities will jointly scout for new ways of enhancing the authentication of identities in blockchain networks with unique initiatives such as identity tokenization while simultaneously working toward the management of cryptographic material, thanks to stringent security procedures.

In fact, Telefonica considers this partnership to be vital, not only for providing sovereign identity services in the cloud but also tapping potential digital identity and cryptography market opportunities that will help in tackling the growing cases of data breaches.

Notably, Telefonica Tech is responsible for managing cyber security, artificial intelligence, cloud, IoT and Big Data businesses with utmost efficacy. The segment manages these businesses under a single umbrella to not only accelerate revenue generation but also facilitate the entry of new partners for lucrative business opportunities. The unit is expected to yield additional revenues of more than €2,000 million in 2022. The holding company focuses on improving key sectors like Industry 4.0, retail and mobility on the back of data-driven decisions.

Meanwhile, Entrust is a recognized global frontrunner in authenticated payments and data protection services. With a diverse bouquet of credential issuance and digital security solutions, it specializes in new-age technologies such as Public Key Infrastructure, Secure ID Solutions and Multifactor Authentication, to name a few. These trailblazing solutions are trusted by eminent partners like Visa Inc. (V - Free Report) , Microsoft Corporation (MSFT - Free Report) , VMware, Inc. (VMW - Free Report) and ServiceNow. The TrustOS platform facilitates organizations to protect their crucial data on the back of the Blockchain network.

However, in order to function under such network, users are first required to get validated by Certification Authority, a centralized entity in the network. Good security practices ensure that private cryptographic keys are adequately managed so as to mitigate identity theft supported by valid credentials. Consequently, Entrust technology protects these cryptographic keys in a secure environment, which makes sure that network identity certificates are not tampered with and that they are not used outside the scope of HSM for malicious activities. With such focused endeavors, Telefonica Tech’s customers are encouraged to adopt more quantum, cryptography and blockchain technologies for enhanced data security.

Over the past few years, Telefonica has invested heavily in the deployment and transformation of its network to provide seamless connectivity with enhanced capacity, speed, coverage and security. Moreover, its IoT connectivity platform has been designed to address dynamic business requirements. With operations across 17 countries, the Spanish telecom company is capitalizing on the opportunities in the digital world through several growth strategies to enhance long-term prospects, while experiencing healthy momentum in the smartphone market.

Telefonica currently has a Zacks Rank #4 (Sell). Shares of the company have gained 14.9% compared with the industry’s growth of 19.5% in the past year.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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