Blec: Expressing Concerns about Chainlink’s Potential Centralized Risk

Blec: Expressing Concerns about Chainlink’s Potential Centralized Risk


Chainlink Responds to Criticism Over Multisig Wallet Change

Chainlink, a decentralized oracle network, has addressed criticism regarding a recent modification to its multisig wallet. The change, which reduced the required number of signatures from 4-of-9 to 4-of-8, sparked backlash on social media. The 4-of-8 multisig requirement is a security measure that mandates four out of eight signatures to authorize a transaction.

Crypto researcher Chris Blec highlighted the alteration in a post on X (formerly Twitter). He expressed concerns about the removal of a wallet address without official communication from Chainlink, suggesting that it centralized control over price feeds. However, Chainlink’s spokesperson stated that the modification was part of a routine signer rotation process.

Blec’s Criticism of Chainlink

Blec has been a major critic of Chainlink, raising concerns about potential centralized risks associated with the project. He has warned that if Chainlink’s signers were to act maliciously, it could disrupt the entire decentralized finance ecosystem. Blec also emphasized the reliance of various DeFi projects on Chainlink’s oracles for accurate price data.

Recent Positive Developments for Chainlink

Despite criticism, Chainlink’s native token LINK has performed well recently. In collaboration with the US Depository Trust and Clearing Corporation (DTCC), Chainlink announced a SWIFT blockchain interoperability project in June. Additionally, its Cross-Chain Interoperability Protocol achieved institutional adoption when ANZ bank utilized it for a cross-chain purchase.

Hot Take: LINK Token Performance

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Currently trading at $7.24, LINK has remained relatively stable in the past day. However, it has seen gains of 10.9% over the past week and 21% over the past 14 days. Despite criticism, Chainlink’s positive developments and institutional adoption have contributed to its recent performance.

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