Deutsche Bank, the German global banking and financial services company, has released a research note urging market leaders to take a look on the blockchain technology and its potential areas of application.

In the report, entitled “Are you already experimenting with blockchain?” the bank suggests decision makers across all industries to keep an eye on the developments and the various ongoing experiments with the technology.

“The key point about using a blockchain based on pure P2P mechanisms is that it eliminates intermediaries, spreading control across a large decentralised network of nodes and providing fundamental protection against manipulation and default”, it said.

It explains that as blockchain is essentially decentralized information storage medium, it can be used in various types of transaction which need to be checked and validated in near real time and protected against manipulation, such as payment instructions, securities transactions, clearing and settlement processes, cryptocurrencies, transfers of property or copyrights, election processes, and much more.

“There are high expectations for the hotly debated peer-to-peer technology (P2P), both in the financial and insurance industries and in various other sectors. Even public administration authorities have recognised valuable potential for optimising their often outdated infrastructures and processes”, the report noted.

In this context, it cites the example of the Honduran government that is working with US-based start-ups to explore the possibility of creating a blockchain-based land registry database. It suggested one possibility for the project as the combination of decentralised and centralised databases – the centralised database would ensure the sensitive information remains in the hands of the government, while the blockchain principle would protect the information contained in the registry entries from manipulation.

In addition, the report also states the ongoing discussions about the potential application of the technology in sharing economy, democratic elections and more. Tt further noted the various initiatives in this space including setting up of innovation labs by financial institutions and blockchain consortiums being formed.

“There is a wide range of potential applications for blockchain technology, although the technology itself is currently at a very early stage of development”, it added. “It is unlikely that any public sector infrastructure will be replaced by blockchain or a variant based on blockchain technology any time soon. Such system changes are generally designed to be in place for a long time and must therefore consider all eventualities and be well thought out”.

It concluded saying that open-minded willingness to experiment by trial and error is key to assess the risks and opportunities of digital technologies so that they can be channelled in the appropriate direction within the appropriate legal framework, adding that this is the only way for national economies to experience a real leap forward in innovation.