Once again, skeptics of Chainlink have expressed concerns about the potential centralization of the oracle network. This uneasiness arose due to a subtle adjustment to its multi-signature wallet.
The decentralized oracle network, Chainlink, has downplayed a recent adjustment in the number of required signers for its multi-signature wallet. This decision faced criticism on social media from outspoken critics.
Crypto researcher Chris Blec and various users on X (formerly Twitter) voiced their criticism of Chainlink. They highlighted the company’s discreet decision to lower the signature requirement on its multisignature wallet, shifting it from a 4-of-9 to a 4-of-8 setup. The adjustment in the multisig requirement was implemented as an additional security measure, mandating that four out of eight signatures are needed to validate a transaction.
On Sept 25, Blec highlighted a post on X that involved an anonymous user’s initial comment. This comment revealed the removal of a wallet address from Chainlink’s multi-signature wallet without any official announcement.
Chainlink Updates Multisignature Safes In Ongoing Security Measures
As part of a routine signer rotation process, the multisignature Gnosis Safes used to ensure the reliable operation of Chainlink services have been updated. The successful conclusion of the signer rotation process means that the Safes still maintain their standard threshold configuration.
Blec consistently expresses strong criticism towards Chainlink. Blec goes as far as suggesting that if Chainlink’s signers were to act against the network’s interests, it could potentially compromise the entire DeFi ecosystem in an instant.
According to Blec, there is a centralization risk inherent in Chainlink that also affects important DeFi projects like Aave and MakerDAO. These projects heavily rely on Chainlink’s oracles to obtain price data.
The decentralized oracle network, Chainlink, facilitates secure communication between Ethereum-based smart contracts and real-world data and services. This innovative system bridges the gap beyond the isolated realm of blockchain networks.
Remarkably, Chainlink’s native LINK token has demonstrated exceptional performance in recent weeks among various cryptocurrency assets. Within the past month alone, it has experienced an impressive gain of nearly 20%.
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