Decentralized oracle network Chainlink (LINK) has addressed criticism stemming from a recent adjustment to the number of required signers on its multisignature (multisig) wallet. The modification reduced the necessary number of signatures from 4-of-9 to 4-of-8, leading to backlash from critics on various social media platforms.
The 4-of-8 multisig requirement is a security measure that mandates four out of eight signatures to authorize a transaction, ensuring a level of security in the process.
In a recent post on X (formerly Twitter), crypto researcher Chris Blec highlighted an original post from an anonymous user, revealing the removal of a wallet address from Chainlink’s multisignature (multisig) wallet without official communication from the company.
Blec expressed concern, stating, “This multisig can change *any* Chainlink price feed to provide *any* price that it wants it to provide. Completely centralized under this multisig.”
However, a spokesperson for Chainlink has reportedly explained that the modification was part of a routine signer rotation process. The spokesperson stated, “The multisignature Gnosis Safes used to ensure the reliable operation of Chainlink services were updated as part of a periodic signer rotation process. The rotation of signers was completed, with the Safes maintaining their regular threshold configuration.”
Blec Remains a Major Critic of Chainlink
Chris Blec has been a notable critic of Chainlink, consistently expressing concerns about the potential centralized risks associated with the project. In the past, he stated that if Chainlink’s signers were to “go rogue,” it could potentially disrupt the entire decentralized finance (DeFi) ecosystem. Blec also emphasized the dependence of various DeFi projects, including Aave and MakerDAO, on Chainlink’s oracles for accurate price data.
Chainlink operates as a decentralized oracle network, facilitating secure communication between Ethereum-based smart contracts and real-world data and services, expanding the capabilities of blockchain networks.
Chainlink’s native token, LINK, has demonstrated robust performance in recent weeks, fueled by a series of positive developments. In June, Chainlink and the US Depository Trust and Clearing Corporation (DTCC) announced a collaboration on a SWIFT blockchain interoperability project. SWIFT, a significant global interbank messaging system, aims to work with Chainlink to expedite the adoption of asset tokenization.
Additionally, Chainlink’s Cross-Chain Interoperability Protocol achieved a significant milestone in terms of institutional adoption last week, contributing to the positive sentiment surrounding the project.
In recent news, Australasian bank ANZ utilized Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to execute a cross-chain purchase involving an ANZ-issued Australian dollar-pegged stablecoin. Chainlink highlighted this use case in a tweet, emphasizing how financial institutions can leverage CCIP for cross-chain transactions across both public and private blockchains.
Despite this positive development, LINK is currently trading at $7.24, nearly unchanged over the past day. However, the token has exhibited solid performance over the past week, gaining 10.9%, and a notable 21% increase over the past 14 days.
