Robert Mayne 
A special report published by the fourth financial institution in the United States by market capitalization amazed everyone. Wells Fargo compared in its special report titled: “Understanding cryptocurrencies“to digital assets with other outstanding innovations.
Wells Fargo also made reference to a concept widely used in the past. The term “Internet of value». Like Wells Fargo, Binance’s head of Fan Tokens and NFTs, Helen Hai, referred to the Internet of Value as a cornerstone of the focus on crypto. The term makes a lot of sense if we want to quickly differentiate Web2 and Web3.
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Digital assets, innovation on a par with the Internet
The company in its report showed the relevance of digital assets today. He came to buy them with the relevance that inventions such as the automobile, the Internet and even electricity had. Initially, Wells Fargo highlights, the Web3 will seem harmful to finances as the original Internet was to communications.
However, the special report explains that digital assets bring with them “new possibilities and investment opportunities” never seen before. This comment, Wells Fargo, emphatically addressed to its investors, also explaining that digital assets would be “the building blocks of a new Internet.”
The importance that cryptocurrencies and digital assets in general have gained caused a very premature maturity of the market, which is positive due to the great adoption it has had. The institution compares Web 2.0 and Web 3.0 in its report with the following image:
If we look at the image above, the term Internet of value begins to make a lot of sense. But Wells Fargo also stressed that this innovation still had a lot to improve. The institution explained that the equation would be as follows: Internet of value = digital assets + infrastructure.
In this infrastructure we can also place the user interface, which the report highlights is very complicated for new users of the Web3. DeFi and dApps are not very interactive and the initial concepts for an average user are complicated.
The dilemma of new crypto users
In its report, Wells Fargo points out the most important trend in the crypto industry, that of focusing solely on technology. This caused the Web3 to leave aside the user experience that is currently very poor. The entry barriers faced by new users end up in many situations, by scaring them away or giving them negative impressions about the ecosystem.
In addition, the excessively technical knowledge of applications such as Tokens, commissions, blockchains and others, are overwhelming at first.
This is not the first report of this kind made by the bank’s research department, they periodically publish some because they want “making sure newcomers see the general concepts before being buried in detail».
While many of the cryptocurrency and digital asset investors do not trust centralized financial institutions, a significant part of the American population still depends on these institutions. Wells Fargo’s support in the adoption of the Web3 can become a decisive factor for the population that still uses traditional and centralized finance.
The Conclusion of Wells Fargo
Wells Fargo’s conclusions were carried out with comparisons between inventions such as the Internet and electricity and cryptocurrencies. However, this may seem to some like a comparison of completely different fruits.
While pears and apples are not the same, we can find similarities, that was the work of Wells Fargo. The report exemplifies situations with payment processors, purchases, remittances and other much more advanced uses such as Bitcoin’s Lightning Network. Wells Fargo explains that “the first movers can take advantage of the effects of the open network and gain economies of scale, while those who join the movement late can lose”.
This would be the fifth report made by the research department that hopes to train and pave the way for new users without a very technical process. To cap off its report, Wells Fargo adds:
“The main risks facing the industry are additional regulation, technology and business failures, operational risks with the handling and storage of digital assets, price volatility and limited consumer protections”.
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