Chainlink, a decentralized oracle network, has addressed concerns raised by the crypto community about a recent alteration in its multisig (multi-signature) wallet.
The criticism arose after users, including well-known crypto researcher Chris Blec, noticed a quiet shift in the number of signatures required on the multisig wallet from 4-of-9 to 4-of-8.
Crypto Community Questions Chainlink’s Multisig Wallet Adjustment
Chainlink is under scrutiny from the community for subtly altering the protocol’s multisig wallet. The changes involve reducing the required number of signatures on the multisig wallet from 4 out of 9 to 4 out of 8. The 4-of-8 multisig setup is a security measure that demands at least four out of eight signatures to authenticate any transaction.
The issue was brought to light when an individual took to X, mentioning the removal of a wallet address from Chainlink’s multisig system without a preceding announcement from the company.
Chris Blec responded to the post expressing concerns that modifications to this multisig could manipulate any Chainlink price feed to display any desired price. He argued that this situation essentially centralizes what should be a decentralized system.
Chainlink multisig has removed a signer and is now a 4-of-8 multisig.
This multisig can change *any* Chainlink price feed to provide *any* price that it wants it to provide.
Completely centralized under this multisig. https://t.co/GOAtJXShIV
— Chris Blec (@ChrisBlec) September 24, 2023
However, some users believe Chainlink’s decision is justified. They argue that a 4-out-of-8 multisig wallet configuration can be more secure than a 4-out-of-9 arrangement. According to them, increasing the number of required signatures doesn’t always enhance security but rather adds redundancy.
Chainlink Responds to Criticism
Chainlink quickly responded to these concerns. A spokesperson clarified that the adjustment was part of a routine signer rotation process, adding, “The rotation of signers was completed, with the Safes maintaining their regular threshold configuration.”
This was a signer rotation, which occurs periodically, the multisignature safes maintained their regular threshold config after the updatehttps://t.co/Mhjdqp6FWm
More context of how upgradability with Chainlink services are managed: https://t.co/s9kGst96lg pic.twitter.com/VKgwNR9uV2
— ChainLinkGod.eth (@ChainLinkGod) September 25, 2023
Blec has frequently been a strong critic of Chainlink. He has previously claimed that if Chainlink’s signers acted maliciously, it could drastically disrupt the entire Decentralized Finance (DeFi) ecosystem.
According to Blec, Chainlink’s influence is not just confined to its direct users. DeFi giants like Aave and MakerDAO, important players in the crypto space, depend on Chainlink’s oracles for crucial price data.
Meanwhile, Chainlink’s (LINK) has witnessed a 20% price increase from its low point of $5.8 on Sept. 12, signaling a potential bullish market trend.
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.