What Is a Whitepaper?
Whitepapers are documents that describe the benefits and applications of a particular service or product. Although most crypto investors think of crypto as soon as they hear the term whitepapers, these documents have a long history in technology and business.
They are used in fields other than technology, and there aren’t really any restrictions on what counts as a whitepaper. Over the years, whitepapers have shifted from describing a problem and its solution to becoming primarily marketing-oriented.
Now that you know what a whitepaper is, let’s look at crypto whitepapers and their components.
Crypto whitepapers are typically written in an academic style and contain technical data, diagrams, and charts. Before introducing a new coin, the founders publish the whitepaper to spark interest.
Some of the best crypto whitepapers were written for the Bitcoin and Ethereum projects. So click on one of those links to get a better idea of how a good whitepaper looks.
While there is no official structure that whitepapers follow, here are some essential components that all crypto whitepapers should aim to include.
The intro is a critical component of any whitepaper. It describes why this coin is required. It frequently begins by describing the existing system, its shortcomings, and how the project could help to address them.
Problem and Solution
This part includes a complete product description and a market study to demonstrate the product’s particular use case.
This is an essential component of all crypto whitepapers that discusses the project’s technical components and technologies.
Most of the whitepaper is usually devoted to a cryptocurrency’s functioning, what the currency is intended for, and how it will do this. Several sections are typically dedicated to describing the project’s blockchain and its features.
This part contains information about the new tokens, such as their value, amount in circulation, and the platform on which they will operate. Whitepapers should also explain how to obtain these tokens.
A consensus mechanism describes how blockchain nodes achieve an agreement on the network’s state. The system determines whether transactions are genuine and should be stored on the blockchain.
The project timetable includes a working strategy for the coming months, covering when the sales will begin, when the project will be launched, and whether future upgrades are planned.
People Behind the Project
Just like the technical components, this section is crucial as it gives critical info on the team’s talents and expertise and its relevance to the project.
Charts and Images
Charts and Images are helpful tools for making a crypto project more digestible. Some concepts are difficult to express in language fully so visual presentations might be handier.
Cryptocurrency principles are frequently challenging to grasp for newcomers. The best whitepapers usually include real-world applications to assist in demonstrating the characteristics and benefits of a project.