Decentralized oracle network Chainlink recently faced backlash on social media after critics pointed out a change in the number of signers required on its multisig wallet. The company has downplayed the issue, stating that the change was part of a standard signer rotation process.
The controversy began when crypto researcher Chris Blec highlighted the reduction in the number of signatures required on Chainlink’s multisig wallet from 4-of-9 to 4-of-8. The multisig requirement is a security measure that mandates four out of eight signatures to authorize a transaction.
Blec shared a tweet that showcased how a wallet address had been removed from the multisig wallet without any public announcement from Chainlink. He expressed concerns about the centralization of power, stating that the wallet could potentially manipulate Chainlink’s price feed.
Chainlink, however, clarified that the update was part of a periodic signer rotation process. They confirmed that the multisig threshold remained unchanged at 4-of-9.
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Blec has been a vocal critic of Chainlink, raising concerns about the potential risks associated with the centralization of power within the network. He believes that if Chainlink’s signers were to go rogue, they could intentionally destroy the entire decentralized finance (DeFi) ecosystem.
Additionally, Blec highlights the centralization risk that extends to other DeFi projects, including Aave and MakerDAO, which rely on Chainlink’s oracles for price data.
Chainlink is a decentralized oracle network that enables Ethereum-based smart contracts to communicate securely with real-world data and services. Its technology allows for the integration of off-chain data into on-chain applications, providing reliable and trustworthy information to blockchain networks.
Despite the criticism, Chainlink’s native token LINK has performed well in recent weeks, experiencing a nearly 20% increase in value over the last month. The growing use of Chainlink’s technology and its importance in the DeFi space contribute to its strong performance.
It is essential to note that Chainlink’s spokesperson emphasized that the recent change in signers was a routine rotation process, and the multisig threshold remained the same. The company aims to ensure the reliable operation of Chainlink services while maintaining the decentralized nature of its network.
With the increasing popularity of DeFi and the reliance on oracles for accurate price data, ensuring transparency and security within the ecosystem is crucial. Chainlink’s ongoing efforts to address concerns and maintain a robust and decentralized network are important steps towards building trust among its users.
In conclusion, Chainlink’s recent update in the number of signers required on its multisig wallet sparked criticism from critics concerned about centralization. However, the company clarified that the change was part of a routine signer rotation process and did not affect the overall security of the network. Chainlink plays a vital role in the DeFi ecosystem, providing reliable and secure communication between smart contracts and real-world data. Despite the controversy, its native token LINK has performed well, reflecting the increasing demand for its technology. Ensuring transparency and security within the oracle space is crucial, and Chainlink continues to actively address concerns and maintain a decentralized network.
