--- title: 3 Blockchain Myths Debunked description: The technology might not be as independent, secure, and immutable as one thinks. image: https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/iStock-935705246-1-May-12-2022-09-20-34-66-AM.jpg --- ![websites-group](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/new-MMG-01.svg) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-new-marketsmedia-logo.svg)](https://www.marketsmedia.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-traders-redlogo.svg)](https://www.tradersmagazine.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-bestexe-logo.svg)](https://www.bestexecution.net/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-fidesk-logo.svg)](https://www.fixglobal.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-fixglobal-new-logo.svg)](https://www.fixglobal.com/) - [*Facebook*](https://www.facebook.com/MarketsMedia/) - [*Twitter*](https://twitter.com/marketsmedia) - [*Linkedin*](https://www.linkedin.com/company/markets-media-llc) - [Newsletter](https://articles.marketsmedia.com/three-blockchain-myths-debunked#popup-newsletter) #### Want the latest news on securities markets -- FREE? Sign up to receive exclusive articles on topics including: - Equity market structure - Profiles of buy-side investment firms - The evolution of multi-asset-class trading - Regulation and its implications for markets - The search for liquidity in fixed income markets - The convergence of fintech and capital markets Select one or more newsletters you would like to receive: menu [![Markerts media](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/header%20logo.svg "Markerts media")](https://articles.marketsmedia.com/) - [Daily Email Feature](https://articles.marketsmedia.com/tag/daily-email-feature) - Daily Email Feature - 3 Blockchain Myths Debunked Search - [Home](https://articles.marketsmedia.com/) - [Trending](https://articles.marketsmedia.com/tag/trending) - [Featured](https://articles.marketsmedia.com/tag/daily-email-feature) - [Sectors](https://articles.marketsmedia.com/tag/sectors) - [From The Markets](https://articles.marketsmedia.com/tag/from-the-markets) - [AWARDS](https://articles.marketsmedia.com/tag/events) - [Newsletter](https://awards.marketsmedia.com/newsletter-sign-up) - [Newsletter](https://articles.marketsmedia.com/three-blockchain-myths-debunked#popup-newsletter) Hide search Search - NewsLetter ![](https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/trading-up-occ-iex-select-board-members-citadel-lands-lieblich-573x379-Jul-07-2022-09-34-11-57-AM.jpg) [ON THE MOVE: Citi Hires Artie Ambrose;...](https://articles.marketsmedia.com/on-the-move-citi-hires-artie-ambrose-natalie-a-brown-to-mesirow) ![](https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/Depositphotos_445735906_L.jpg) [Trading Adapts to ESG and Sustainable...](https://articles.marketsmedia.com/trading-adapts-to-esg-and-sustainable-investing) ![](https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/iStock-917493152-Jul-07-2022-09-34-19-09-AM.jpg) [Focus on FX Execution Connectivity](https://articles.marketsmedia.com/focus-on-fx-execution-connectivity) ![](https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/Depositphotos_333839538_L.jpg) [TRACE Turns 20](https://articles.marketsmedia.com/trace-turns-20) 09.21.2018 By Rob Daly Daily Email Feature # 3 Blockchain Myths Debunked 09.21.2018 By Rob Daly ![3 Blockchain Myths Debunked](https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/iStock-935705246-1-May-12-2022-09-20-34-66-AM.jpg) [Share](https://www.facebook.com/share.php?u=https://articles.marketsmedia.com/three-blockchain-myths-debunked) [Tweet](https://twitter.com/intent/tweet?text=US+ETFs+Have+Record+Net+Inflows&url=https://articles.marketsmedia.com/three-blockchain-myths-debunked) [Share](https://www.linkedin.com/cws/share?url=https://articles.marketsmedia.com/three-blockchain-myths-debunked) Blockchain can round the sharp operational corners in an enterprise environment, but the technology is far from a panacea, according to a Tibco Software executive. "Especially when it comes to the enterprise, some terms and myths get tossed around," said Nelson Petrachek, CTO of Tibco Software, during a recent webinar. The idea that an enterprise blockchain does not require third-party involvement, is totally secure, and completely immutable are qualified at best. A decentralized network that lacks a third-party governance structure does not just magically appear, according to Petrachek. ![](https://articles.marketsmedia.com/hs-fs/hubfs/Imported_Blog_Media/Nelson-Petrachek-Tibco-1.png?width=150&height=225&name=Nelson-Petrachek-Tibco-1.png) Nelson Petracek, Tibco Software "It's somewhat true, but not fully true," he said. "What you typically find, especially in an enterprise context that you still need some way to provide governance and stewardship over the network." An enterprise blockchain requires processes to determine who can join, who can leave, as well as settle issues if a bug in a smart contract causes things to go wrong. Petrachek also noted that if encrypted data resides on a blockchain, it does necessarily mean that it is secure and depends on which blockchain framework a firm uses. "In some cases, the information on the ledger is freely readable," he said. "It is open, transparent, and everyone can see it. In some cases, you want that, and in other cases, you do not." He advised that enterprises need to consider which information they plan to store on the blockchain as well as who is allowed to read it if it is encrypted. Firms may want to think twice before populating a blockchain with personally identifiable information due to privacy regulations like the General Data Protection Regulation's right to be forgotten. "If I put personal information on the network, how do I forget somebody," asked Petrachek. The answer is that the immutability of a blockchain is a tad overblown. "It is true that with a blockchain, the data structures and the way that blocks point to previous blocks as well as its use of cryptographic hashing, blockchains are far more tamper resistant but 'immutability' is a very strong word." Petrachek pointed to blockchain forking as a workaround for immutability, where participants can return to a previous moment and re-start adding new content to the distributed ledger. "In essence, you have changed it," he said. "You have gone back and taken a different direction." All of these factors, according to Petrachek, depend on which blockchain framework and consensus model an enterprise choose to use, but these are the typical issues that come up when he speaks with clients. 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