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Chainlink brushes down concerns raised by customers’ quiet switch to multisig

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Critics of Chainlink have once again voiced their concerns regarding the alleged centralization of the oracle network, following a subtle adjustment to its multisig wallet.

Chainlink, a decentralized oracle network, has sought to downplay a recent alteration in the number of signatories required for its multisig wallet—a decision that has triggered a wave of criticism on social media from vocal detractors.

Among the critics was crypto researcher Chris Blec, who, along with other users on X (formerly known as Twitter), raised objections to Chainlink’s quiet reduction of the number of required signatures from 4-of-9 to 4-of-8.

This 4-of-8 multisig requirement serves as a security measure, necessitating four out of eight signatures to authorize a transaction.

In a September 25th post on X, Blec highlighted an original post from an anonymous user, revealing the removal of a wallet address from the multisig wallet without any formal announcement from Chainlink.

While members of the cryptocurrency community swiftly voiced their concerns about this move, a spokesperson for Chainlink clarified to Cointelegraph that the update was part of a routine signer rotation process.

“As part of our periodic signer rotation process, we updated the multisignature Gnosis Safes used to ensure the dependable operation of Chainlink services. The rotation of signers was successfully completed, with the Safes maintaining their usual threshold configuration.”

It’s worth noting that Blec has been a persistent critic of Chainlink, even going so far as to suggest that “the entire DeFi ecosystem could be intentionally disrupted in the blink of an eye” if Chainlink’s signers were to ever “act against the network’s interests.”

According to Blec, the centralization risk associated with Chainlink extends to various prominent DeFi projects, including Aave and MakerDAO, which rely on Chainlink’s oracles for essential price data.

Chainlink stands as a decentralized oracle network, facilitating secure communication between Ethereum-based smart contracts and real-world data and services outside the confines of blockchain networks.

Remarkably, Chainlink’s native LINK token has demonstrated impressive performance in recent weeks, witnessing an almost 20% increase in value over the past month, as per price data from Cointelegraph.

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