Decentralized oracle network Chainlink has downplayed a recent change in the number of signers required for its multi-signature wallet — a move that sparked backlash on social media from outspoken critics.
Cryptocurrency researcher Chris Blake was among a number of users on X (formerly known as Twitter) who called on Chainlink to quietly reduce the number of signatures required on its multi-signature wallet from 4 out of 9 to 4 out of 8.
The 4 out of 8 multisig requirement is a security measure that requires four out of eight signatures to authorize a transaction.
In a post dated September 25, Blec drew attention to an original post from a pseudonymous user that showed that the wallet address had been removed from the multi-signature wallet without any announcement being made by Chainlink.
Chainlink multisig has removed a signer and is now 4 of 8 multisig.
This multisig can change *any* Chainlink price feed to provide *any* price it wants to provide.
Fully centralized under this multisig. https://t.co/GOAtJXShIV
– Chris Blake (@ChrisBlec) September 24, 2023
While members of the cryptocurrency community were quick to raise concerns about the move, a Chainlink spokesperson told Cointelegraph that the update was part of a standard site rotation.
“As part of the regular signer rotation, Gnosis Multi-Signature Safes have been updated to help ensure reliable operation of Chainlink services. The signer rotation has been completed, with the safes retaining their usual threshold configuration.
Blec has long been an outspoken critic of Chainlink, going so far as to say that “the entire DeFi ecosystem could be deliberately destroyed in the blink of an eye,” if Chainlink signers go “rogue” at all.
The entire DeFi industry – VCs, DAOs, developers, everyone – conspires to hide the fact that if 5 people are chosen by… @chain linkIf you decide (or have to) to go outside the law, the entire DeFi ecosystem can be intentionally destroyed in the blink of an eye.
– Chris Blake (@ChrisBlec) February 7, 2023
Related: Chainlink accesses the Ethereum Layer-2 Arbitrum for cross-chain decentralized application development
According to Blake, the centralization risk inherent in Chainlink extends to a host of core DeFi projects including Aave and MakerDAO, which rely on Chainlink oracles for price data.
Chainlink is a decentralized oracle network that enables Ethereum-based smart contracts to securely communicate with real-world data and services outside the isolated world of blockchain networks.
Notably, Chainlink’s native LINK token (LINK) has been one of the best-performing crypto assets in recent weeks, gaining nearly 20% over the past month according to price data from Cointelegraph.
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