Forrester Report: 11 Enterprise Blockchain Myths of The Decade

December 24, 2024 6:17 PM | 5 min read |

The global blockchain technology market size was valued at $17.26 billion last year. This number is expected to grow at a compound annual growth rate of 87.7% over the next six years.

While notable, understanding how blockchain works is complex. Additionally, a number of myths are often associated with the technology, which may hamper adoption in the future.

Forrester Report Highlights Enterprise Blockchain Myths

Forrester Research released a new report detailing the most common blockchain myths from 2014 until present day.

Martha Bennett, VP and Principal Analyst at Forrester, told Cryptonews that she compiled the list. She explained that the findings were based on insights and observations gained from research and work with clients on the topic of enterprise blockchain over the years.

Bennett shared that she started her research in mid-2014 and hasn’t stopped since.

"Over the years key themes associated with blockchain technology have emerged that were frequently taken at surface value by IT and business teams in enterprises," she said. "I spent lots of time explaining to clients (and non-clients, for that matter) what was myth and what was reality."

Although blockchain has matured greatly over the years, Bennett believes that the myths listed below continue to persist – here's why:

  1. The Blockchain Exists

The Forrester report notes that phrases such as "the blockchain will address that" or "putting something on the blockchain" create confusion. This is why it's worth stressing that the blockchain doesn't actually "exist."

The report states that "blockchain is an architectural principle that features certain characteristics." It also states that the underlying concept of blockchain can be realized differently.

For instance, there are dozens of public, permissionless blockchain networks, like Bitcoin and Ethereum. A wide variety of open-source and proprietary protocols are also available to build permissioned networks.

In addition, there are semi-public and hybrid networks whose governance models offer a blend of permissioned and permissionless functions.

"Many software offerings aren't blockchains by any stretch of the imagination because they don't use blocks,” the report notes. “However, these offerings label themselves as such."

  1. Blockchains Disintermediate And Trusted Third Parties Are No Longer Needed

The second myth is that blockchain networks won't ever fully disintermediate.

While blockchain networks support the direct transfer of value between two parties, third parties are still needed for enterprise blockchain use cases.

"The only way to cut out third parties altogether is for consumers or businesses to self-custody their wallets and interact with a blockchain directly, which is not a realistic proposition for mainstream business relationships,” the report states. “Even in scenarios where ecosystem partners deal directly with each other at the expense of existing third parties, it doesn't mean third parties are no longer part of the mix."

The document adds that cryptocurrency use cases rely on third parties, such as wallet providers, exchanges, and custody services.

  1. Blockchains Are Decentralized

Third on the list of myths is that blockchains are decentralized. However, decentralization is more complex than it may seem.

"Even the public Bitcoin and Ethereum networks aren't completely decentralized,” the report states. “On the contrary, miners and core developers in effect exercise a form of central control, and those small groups aren't accountable to anybody."

Findings also state that elements of centralization are present in cryptocurrencies and decentralized applications (Dapps). As a result, it's noted that the term "decentralization

theater" has become popular for describing networks or applications that claim to be decentralized but aren't.

  1. Blockchains Are Trustless

While a blockchain network can facilitate the exchange of information between people or entities that do not know or trust each other, that doesn't mean the technology is entirely trustless.

According to the report, participants still trust the functioning of these networks. For example, participants need to trust the mathematics and cryptography, along with the network’s code.

Users also need to trust those who effectively control the respective networks, such as those with the resources to add blocks to the chain and the developers who can modify the core code.

  1. Blockchains Are Immutable

A key characteristic of a blockchain network is immutability, yet the report explains that this isn't always the case and notes that for enterprises, immutability isn't always desirable.

According to the report, changes can be made to the blockchain.

"One is to recompute the chain, either in its entirety or to the point before an undesirable event occurred; this erases and recreates history,” the report states. “The other is to fork the chain, which preserves historical code and transactions but means the software now works differently, and ownership may have been reassigned."

  1. Blockchains Are Inherently More Secure

The report also points out that blockchains may not be more secure unless these features are designed into the network.

For instance, in some cases, participants will have access to credentials to access a network. This creates a security vulnerability. Even networks with multiple nodes are susceptible to attacks.

Comments
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga

© 2025 Benzinga | All Rights Reserved