Chainlink downplays worries after users notice quiet change to multisig

Tom Mitchelhill2 hours agoChainlink downplays worries after users notice quiet change to multisigChainlink critics have reiterated concerns about the oracle network’s supposed centralization after a subtle adjustment to its multisig wallet.1481 Total views29 Total sharesListen to article 0:00NewsJoin us on social networksDecentralized oracle network Chainlink has downplayed a recent change in the number of signers required on its multisig wallet — a move that garnered backlash on social media from vocal critics.

Crypto researcher Chris Blec was among a number of users on X (formerly known as Twitter) who called out Chainlink for quietly reducing the number of signatures required on its multi-signature wallet from 4-of-9 to 4-of-8.

The 4-of-8 multisig requirement is a security measure that requires four out of eight signatures to authorize a transaction.

In a Sept. 25 X post, Blec drew attention to an original post from a pseudonymous user that showed that a wallet address had been removed from the multisig wallet without any announcement being made by Chainlink.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. https://t.co/GOAtJXShIV— Chris Blec (@ChrisBlec) September 24, 2023

While members of the crypto community were quick to raise their concerns with the move, a spokesperson for Chainlink told Cointelegraph that 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. The rotation of signers was completed, with the Safes maintaining their regular threshold configuration.”

Blec has long been an outspoken critic of Chainlink, going as far as saying that “the entire DeFi ecosystem can be intentionally destroyed in the blink of an eye” if Chainlink’s signers were to ever “go rogue.”The entire DeFi industry - VCs, DAOs, devs, everyone - is colluding to hide the fact that if 5 people, chosen by @chainlink, ever decide (or are forced) to go rogue, the entire DeFi ecosystem can be intentionally destroyed in the blink of an eye.— Chris Blec (@ChrisBlec) February 7, 2023

Related:Chainlink hits Ethereum layer-2 Arbitrum for cross-chain DApp development

According to Blec, the centralization risk inherent in Chainlink extends to a range of mainstay 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 outside the siloed world of blockchain networks.

Notably, Chainlink’s native LINK (LINK) token has been one of the best-performing crypto assets in recent weeks, having gained nearly 20% over the last month, according to price data from Cointelegraph.

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