Home Blockchain Chainlink Faces Scrutiny Over Controversial Multisig Wallet Changes

Chainlink Faces Scrutiny Over Controversial Multisig Wallet Changes

Chainlink Faces Scrutiny Over Controversial Multisig Wallet Changes

Chainlink has come under scrutiny within its community due to recent alterations to the protocol’s multisig wallet. These changes involve reducing the required number of signatures on the multisig wallet from 4 out of 9 to 4 out of 8. The 4-of-8 multisig configuration serves as a security measure, mandating at least four out of eight signatures to authenticate any transaction.

The controversy emerged when an individual took to social media, highlighting the removal of a wallet address from Chainlink’s multisig system without any prior announcement from the company.

Chris Blec voiced his concerns in response to the post, suggesting that modifications to the multisig could potentially manipulate Chainlink’s price feeds, effectively centralizing what should be a decentralized system.

However, some users argue that Chainlink’s decision is reasonable. They contend that a 4-out-of-8 multisig wallet configuration can offer enhanced security compared to the previous 4-out-of-9 arrangement. According to this perspective, increasing the number of required signatures doesn’t necessarily bolster security but instead introduces redundancy.

Chainlink’s Response to Criticism
Chainlink swiftly addressed these concerns through a spokesperson who clarified that the adjustment was part of a routine signer rotation process. The spokesperson added, “The rotation of signers was completed, with the Safes maintaining their regular threshold configuration.”

Chris Blec has been a vocal critic of Chainlink, previously asserting that malicious actions by Chainlink’s signers could potentially disrupt the entire Decentralized Finance (DeFi) ecosystem.

Blec also emphasized that Chainlink’s influence extends beyond its direct users, as prominent DeFi players like Aave and MakerDAO rely on Chainlink’s oracles for crucial price data.

Meanwhile, Chainlink (LINK) has experienced a 20% price surge from its recent low point of $5.8 on September 12, indicating a potential bullish trend in the market.