Crypto

Understanding White Papers on Cryptocurrency in Just 3 Minutes – ₿log

A document usually intended to explain the origin of a project or the specifics of a technology also exists in the world of blockchain and, by extension, cryptocurrencies. Its role, in addition to being informative, is aimed, in particular, at convincing users of the seriousness of the project and its growth potential.

What is a technical document?

Behind every cryptocurrency is one or more creators. This person or these people have an idea, a vision, and an answer to a problem that they think they have identified. In the world of cryptography, white papers are of paramount importance. Their mission is to present the project to all future users. This document is also an important element of fundraising proposals (ICO = Initial Coin Offering) as its purpose will be to inform and encourage investors to join the project.

White papers of varying lengths (ranging from a few pages to several dozen) are mostly technical in nature and relatively difficult for those new to cryptocurrencies to understand. Often because they are written by the developers themselves!

How do you spell white paper?

A white paper, whatever its length, must convince the reader, especially if it is an investor. The topics covered can be many. In all cases, they must contain:

  • a roadmap that defines the goals of the project
  • technical possibility
  • the time it takes to reach it
  • number of tokens issued into circulation
  • Token price

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Other information may also be included, such as those related to the risks of the project, the timetable for future activities, etc. The more information, the more credible the white paper is for the cryptocurrency, even if the success of the cryptocurrency is not measured by the size of its white paper.

famous official documents

Proof: The Bitcoin white paper, the first written about cryptocurrency, is known for its simplicity. It consists of “only” 8 pages and often serves as a template for tokens that have since come out. It can be viewed in English on the Bitcoin.org website. Here is another list of well-known white papers in the cryptosphere:

Read also Get to grips with stablecoins in just 3 minutes

Conclusion: an absolute pledge of guarantee?

Oh no. No matter how serious and complete it may be, a white paper never guarantees the success of a crypto project. Some ideas may be discarded along the way and others changed without notice. In the most extreme cases, project leaders may even walk away with the money at the end of the ICO! (then we’re talking about an exit scam).

White papers meant to convince the real usefulness of the project are almost never read by crypto fans due to their complexity. Our advice is to take a look at it anyway to understand at least the purpose (and philosophy) of the project.

Another less complicated solution is to go to social networks (Twitter, Reddit, Telegram, etc.) and Internet forums to read the opinions of those who read them (and understood!). Their comments will let you know if this project inspires confidence in the community.

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