April 19, 2024
Chainlink Addresses Multisig Concerns Amid User Observations
Latest Cryptocurrency News

Chainlink Addresses Multisig Concerns Amid User Observations

Chainlink, the decentralized oracle network, has addressed recent criticism regarding changes in the number of signers required for its multisig wallet. This adjustment sparked backlash on social media platforms, with crypto researcher Chris Blec and other users on X (formerly Twitter) expressing concerns.

The controversy stemmed from Chainlink’s decision to quietly reduce the number of required signatures on its multi-signature wallet from 4-of-9 to 4-of-8. The 4-of-8 multisig requirement mandates that four out of eight signatures are necessary to authorize a transaction.

In a post on September 25th, Chris Blec drew attention to an earlier post by an anonymous user, revealing that a wallet address had been removed from the multisig wallet without an official announcement from Chainlink. The crypto community quickly raised questions about this change.

However, Chainlink explained that this modification was part of a routine signer rotation process. A Chainlink spokesperson clarified.

“As part of a periodic signer rotation process, the multisignature Gnosis Safes used to help ensure the reliable operation of Chainlink services were updated. The rotation of signers was completed, with the Safes maintaining their regular threshold configuration.”

Chris Blec has been a vocal critic of Chainlink, expressing concerns about the potential centralization risks associated with the network. He has warned that if Chainlink’s signers were to act maliciously, it could jeopardize the entire DeFi ecosystem. Blec believes that this centralization risk extends to various DeFi projects, including Aave and MakerDAO, which rely on Chainlink’s oracles for price data.

Chainlink is a decentralized oracle network that facilitates communication between Ethereum-based smart contracts and real-world data and services, bridging the gap between blockchain networks and external information sources.

It’s worth noting that Chainlink’s native token, LINK, has performed well in recent weeks, experiencing nearly a 20% increase in value over the past month.

Photo by Tima Miroshnichenko

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