Chainlink's Multisig Wallet Modification Sparks Controversy Amid Crypto Community
Summary:
Chainlink recently revised the number of approvers for its multi-signature wallet from four out of nine to four out of eight, attracting criticism from several quarters, including crypto researcher, Chris Blec. Blec has previously warned about the centralization risk in Chainlink and alleges it could potentially endanger the entire DeFi ecosystem. Chainlink, however, dismissed this criticism and argued this adjustment is part of a standard signatory rotation process.
Chainlink's recent adaptation concerning the number of approvers for its multisig wallet has sparked criticism, which the decentralized oracle network has largely dismissed. Among the critics was Chris Blec, a crypto researcher, who pointed out on social media platform X (previously known as Twitter) that Chainlink had subtly reduced the required approvers on its multi-signature wallet from four out of nine to four out of eight. This method, dubbed the 4-of-8 multisig, is a control procedure that necessitates the presence of four out of eight signs to authenticate a transaction.
Blec, via a post on X on September 25, shed light on a preexisting post by an anonymous user, illustrating that a wallet address was eliminated from the multisig wallet without any communique from Chainlink. Interestingly, Chainlink's actions to revise their approvers was met with swift criticism from the crypto community.
However, a representative from Chainlink assured Cointelegraph that this was merely part of a standard rotation process for signatories. The spokesperson stated, "The Chainlink services' multisignature Gnosis Safes were updated in line with an occasional rotation cycle for signatories, maintaining the common threshold set-up post-rotation."
Blec has previously been a prominent critic of Chainlink. He even suggested that the entire DeFi ecosystem is at risk if Chainlink's signatories were to "go rogue," as it could potentially lead to the intentional destruction of the ecosystem in a short span of time.
Blec also indicated that the centralization threat present in Chainlink could extend to several key DeFi projects, such as Aave and MakerDAO. These organizations depend on Chainlink's oracles for price specifics.
Chainlink, an autonomous oracle network, facilitates smooth and secure interaction between Ethereum-based smart contracts and real-world data and services, beyond the confines of blockchain networks. Remarkably, the LINK token of Chainlink has witnessed a significant upswing, increasing by approximately 20% over the previous month, as per the pricing data from Cointelegraph.
Published At
9/25/2023 6:01:23 AM
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