The global blockchain market has broad prospects, but myths still exist
According to the latest data, the global blockchain technology market reached $17.26 billion last year and is expected to expand rapidly at a compound annual growth rate of 87.7% over the next six years. However, despite the enormous potential of blockchain, many people still have misconceptions about it. These misunderstandings may hinder the further promotion of the technology.
Source: APK Investment Management LLC
Forrester Research recently released a report summarizing 11 common myths related to enterprise blockchain over the past decade and analyzing why they continue to persist.
Myth 1: Blockchain itself 'exists'
Many people say, 'Use blockchain to solve this problem' or 'Put something on the blockchain.' In reality, this statement is problematic. Blockchain is not a single entity; rather, it is an architectural concept that can be realized in various ways. For example, public blockchains (like Bitcoin and Ethereum) and private blockchains (permissioned networks) have different architectures and functionalities. Additionally, some hybrid networks combine the characteristics of both public and private blockchains.
Myth 2: Blockchain can completely replace intermediaries
Although blockchain can enable peer-to-peer value transfer, this does not mean that intermediaries are completely unnecessary. In enterprise applications, third-party roles remain very important. For example, wallet providers, exchanges, and custodial services are still key components of the cryptocurrency industry.
Myth 3: Blockchain is completely decentralized
Decentralization is one of the core features of blockchain, but it is not absolute. For example, while Bitcoin and Ethereum are public blockchains, their developers and miners actually hold significant control, and these controllers are not accountable to anyone.
Source: X
Myth 4: Blockchain does not require trust
Many people believe that blockchain is a 'trustless' technology, but in reality, users still need to trust the network's operating mechanisms, including cryptographic algorithms, code, and those who have the ability to modify the network's code or add blocks.
Myth 5: Blockchain is completely immutable
Immutability is a significant feature of blockchain, but in certain circumstances, blockchain data can be altered. For example, historical records can be modified by recalculating the chain or creating forks. Therefore, the immutability of blockchain is not absolute and may not always be a desired feature for businesses.
Myth 6: Blockchain is more secure than other technologies
If not designed properly, blockchain is not inherently safer. For example, user credentials may be leaked, or attackers may exploit vulnerabilities in certain nodes. Therefore, the security of blockchain depends on its specific design and implementation.
Source: X
Myth 7: Blockchain is a 'truth machine'
Although blockchain can ensure data integrity, it cannot guarantee the authenticity of the data. For example, the system cannot determine whether a property registration belongs to the true owner, nor can it verify the legality of a user's authorization for data usage.
Myth 8: Blockchain can automatically improve data quality
Blockchain can protect data from being tampered with, but it cannot solve the quality issues of the data itself. If the data entered initially is incorrect, blockchain will only 'perpetuate' these errors. Therefore, data quality issues must be resolved before writing to the blockchain.
Myth 9: Transparency is always beneficial for businesses
Blockchain's transaction records are open and transparent, but for businesses, excessive transparency may lead to issues such as the leakage of trade secrets. Currently, technologies addressing data privacy issues (like zero-knowledge proofs) remain complex and are not yet widely applicable to enterprise-level applications.
Source: Blockchain
Myth 10: Smart contracts will replace lawyers
Smart contracts can automate some processes, but the phrase 'code is law' is inaccurate. Parties still need legal agreements to ensure the execution of smart contracts and cover other standard contract terms.
Myth 11: As long as the blockchain is built, users will naturally come
Many businesses believe that simply establishing a blockchain network will automatically attract users. However, the reality has proven otherwise. Reports indicate that many business blockchain projects failed between 2022 and 2024, due to imbalances in the ecosystem and inadequate business models.
This report reminds us that when adopting blockchain technology, businesses must fully understand its potential and limitations, and design application solutions reasonably in conjunction with actual needs.
This article is reproduced with permission from: (Foresight News)
Original author: Rachel Wolfson
‘There is no complete decentralization? Experts reveal 11 misconceptions about blockchain: hindering technology promotion’ was first published in ‘Crypto City’
