Chainlink addresses controversy over multisig wallet signer changes

Chainlink, a decentralized oracle network, has come under scrutiny for altering the security measures of its multi-signature (multisig) wallet.

Crypto researcher Chris Blec was one of several users on X (formerly known as Twitter) who criticized Chainlink for discreetly lowering the number of necessary signatures on its multi-signature wallet from a 4-of-9 configuration to 4-of-8.

The 4-of-8 multisig configuration serves as a security protocol, requiring at least four out of eight signers to approve a transaction.

In a Sep. 24 post, Blec highlighted a message from a pseudonymous user revealing that a wallet address had been quietly removed from Chainlink’s multisig wallet without any formal communication from the company.

Another anonymous user on X (formerly Twitter) added another layer to the discussion, suggesting that Chainlink’s lack of transparency could be a strategic move to sidestep potential regulatory issues with the Securities and Exchange Commission (SEC).

As the crypto community rapidly voiced their concerns about the change, a Chainlink community ambassador took it to X to clarify that the update was a routine part of their standard signer rotation process aimed at maintaining the dependable functioning of Chainlink services.

Chris Blec has been a long-standing critic of Chainlink, previously warning that the entire decentralized finance (defi) ecosystem could be at risk if Chainlink’s signers were to act maliciously.

Blec argues that the centralization risk in Chainlink also affects other major defi projects like Aave and MakerDAO, both of which rely on Chainlink’s oracles for accurate price data.

Chainlink enables Ethereum-based smart contracts to securely interact with real-world data and services, bridging the gap between blockchain networks and the outside world.

Despite the recent controversy, it’s worth noting that Chainlink’s native LINK token has performed well in the market. As per data from CoinMarketCap, the token has gained nearly 20% over the past month and was trading at $7.27 at press time, adding 8.51% in its value over the previous week.