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- 1 A recent report states that the Chainlink team has changed its multisig signee threshold.
- 2 Without any transparency or communication, the team has made the changes.
Recently, the decentralized oracle network Chainlink has changed its multisig signee threshold from 9 to 8. Chainlink enables Ethereum-based smart contracts to communicate securely with real-world data and services outside the siloed world of blockchain networks. After this move, the critics have reiterated concerns about the Oracle network’s supposed centralization after a subtle adjustment to its multisig wallet.
Notably, the 4-of-8 multisig requirement is a security measure that needs four out of eight signatures to authorize a transaction.
According to a media outlet report, the update was part of a standard signer rotation process. As part of a periodic signer rotation process, the multisignature Gnosis Safes used to help ensure the reliable operation of Chainlink services were updated.
Chris Blec’s Sayings Over Recent Changes by Chainlink Team
On September 24, 2023, the crypto researcher, Chris Blec, also shared an X (formerly known as Twitter) post. He noted, “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.”
Blec also drew attention to an original post from a pseudonymous user. It indicated a wallet address that was removed from the multisig wallet without any announcement being made by the network. Meanwhile, members of the crypto community seemed quite quick to raise their concerns about the move.
Notably, Blec has long been an outspoken critic of Chainlink. He further stated that “The entire Decentralized Finance (DeFi) ecosystem can be intentionally destroyed in the blink of an eye if Chainlink’s signers were to ever go rogue.”
According to Blec, “The centralization risk inherent in Chainlink extends to a range of mainstay DeFi projects. It includes Aave and MakerDAO, which rely on Chainlink’s oracles for price data.”
LINK Price Performance
According to CoinMarketCap (CMC), Chainlink’s native LINK token has been one of the best-performing crypto assets in recent weeks. In the last 7-days its price showed over 7% price gain, which increased by over 20% in the last month.
At press time, LINK is trading at $7.22 with a 24-hour trading volume of $200.02 Million. The token is up 1.27% in the last 24 hours, with a current market cap of $4.01 Billion. In the past 24-hours, the token has noted a low of $6.95 and a high of $7.29.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stocks comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
