Is a Whitepaper Important?
Whitepapers have always had a high level of importance for society having been used by democratic governments over many years to lay out their proposals for future legislation that naturally enables fair growth within the chosen field.
Who Authors a Whitepaper and What Is the Purpose?
Usually, a governing body will elect or employ an author to write a whitepaper. The author’s job is then to go away and articulate a research-based project of usually a complex project.
The purpose is to bring the reader an accurate description of the problem using experts’ analysis of the issue that the whitepaper will solve. Hence, it will then move the organization forward with time.
How Do Whitepapers Differ?
Whitepapers differ due to the organizations’ demands. The author has the task of bringing together the appropriate research and expert analysis in a document easily understood by everyone.
This enables an organization or government to refer to the whitepaper during a process of change or growth.
A whitepaper will always be written in an academic style.
What is a Cryptocurrency Whitepaper?
A cryptocurrency whitepaper is a document that will summarize important information on a blockchain or crypto project.
With the world of the digital age being so groundbreaking, whitepapers are hugely beneficial and informative given the usage from new footfall is constantly growing.
The important information often contained in the whitepaper are features of the product with “Project Goals” from the forecast expansions and growth. The forecast economic growth throughout and a timeline of the process are listed, with the intention of being adhered to as the project moves forward.
The Expected Whitepaper Categories
Project Summary
A cryptocurrency whitepaper should start with a summary that spells out what the crypto project is about and the problems or issues outlined that the whitepaper would endeavor to address.
Fundamental Workings of the Whitepaper
A well-written whitepaper will then spell out the goals for the project, and how the document will aid accomplishing those directives.
Why the Project?
The next section of the whitepaper will spell out the needs and why the project is taking place. This brings a sense of validation for prospective investors bringing potential users of the project an idea if it will fulfil their needs.
Roadmap
A complete roadmap of the project’s plans and forecast timelines is another crucial section for readers. To aid this expectation, forecast goals combined with expected dates of completion of each stage are laid out.
Technology
The cryptocurrency and blockchains that produce whitepapers have an incumbent need to spell out the technology for readers.
Invariably, the whitepaper will be naturally linked with technology in cryptocurrency, so it needs to detail to readers the current status quo and how the improvements in technology will advance the quality of functionality for all parties.
Transparency
A section of a cryptocurrency whitepaper needs to be devoted to listing the fleet of people or teams behind the project.
The list will contain the cryptocurrency founders’ names, investors, advisors, employees, and any other party who has a vested interest in the project.
The result of such transparency is two-fold. Firstly, this really aids confidence amongst interested readers and even users at crypto betting sites. Plus, it allows them to see that the people with the required expertise are in place for the project.
Understanding a Cryptocurrency Whitepaper
Whitepapers can be a difficult read at the best of times in all industries, but to help a reader understand a cryptocurrency one optimally, it is important to be at ease with many of the norms and terms within the genre such as:
- Blockchain: Decentralized distributor for a digital ledger that secures and stores sensitive data.
- Consensus Mechanism: Proof of Work and Proof of stake.
- DeFi: De-centralized finance.
- Governance: Maintains the de-centralized ethos behind the industry.
- NFTs: Non-Fungible Tokens.
- Nodes: A node validates and verifies every incoming transaction.
- Soft and hard forks: A soft fork is a change or modification amongst a blockchain while a hard fork is a change in blockchain protocol.
- Smart Contacts: Automated settings which builds trust for participants and brings a smooth flow for transactions.
