What is a cryptocurrency white paper?
Before explaining what a cryptocurrency white paper is, we need to explain what a white paper in general is. Specifically, a white paper is a report that explains a topic or issue to its readers. It acts as a guide to educate users, and the specifics of a paper can vary depending on what the white paper is about. White papers can be used by a variety of organizations, including government agencies, non-profit organizations, and even startups. They contain simplified technical information and can be used to promote or launch a product.
A cryptocurrency white paper is a document that summarizes the important information on a blockchain or cryptocurrency project. It normally includes a project’s goals, products, features, the parameters that give the cryptocurrency its economic value, and information about the project’s participants. It may include diagrams or visuals that present statistics in a variety of forms. A cryptocurrency white paper provides a great introduction to the project because it explains how it works, what it does, and the problems it is trying to solve. All relevant commercial, technical, and financial information should be available in this document.
There are many different ways to create a white paper. Each white paper differs, but it should ultimately be informative and clear about the project and its goals. Cryptocurrency white papers give investors a comprehensive preview of the project idea before it launches. It is important to make sure the white paper maintains a neutral tone because language that is too persuasive might not give enough information. Also, readers can be more hesitant to trust white papers that make large claims.
What does a cryptocurrency white paper include?
Because a cryptocurrency white paper is designed to introduce a project, it will include ways the project can be used in the real world. As an example, Bitcoin’s white paper describes it as “a purely peer-to-peer version of electronic cash [that] would allow online payments to be sent directly from one party to another without going through a financial institution.” Bitcoin’s white paper clarifies the product’s practical application to potential users and is an important method of obtaining investors. The ways the product can be used are often aspirational in a white paper. Often, there is no guarantee that the project will become widely accepted by the public.
However, a white paper can also describe how cryptocurrency will work from a technical standpoint. It might detail what mechanism it uses, how people use it to communicate, a product release timeline, and other project components.
It is also crucial that a cryptocurrency white paper is clear and concise. To make a paper easy to follow and lend it credibility, a company should explain the technical terms it uses. That way, readers can get an accurate baseline understanding of the project. Information should be clearly presented, and it could be helpful to ask someone who is not familiar with the project to help revise the white paper. People too closely involved with the project will undoubtedly be very familiar with it, and they could use very technical terms that are not commonplace. By getting a different perspective on the white paper, the white paper’s writers can help the general public better understand it.
What to look for in a white paper
When reading a cryptocurrency white paper, you should first make sure it explains what the project aims to do. White papers often include technical jargon or confusing terms that make them difficult to understand. If the white paper doesn’t clarify obscure terminology, this can take away from the legitimacy of the white paper. A good white paper should also explain how the technology works and how it would be used to solve a problem. If a project has been considered thoughtfully, the white paper should reflect this.
Additionally, it should be clear that the project fills an empty niche in the real world. The project should provide a service that improves upon a current system, and it should be marketable to a clear audience. Essentially, a white paper should convince readers that people would actually use the proposed technology if it was released.
How to read a white paper
Another crucial aspect of the cryptocurrency white paper is to take into account why its product needs to use the blockchain. Not every solution requires blockchain. Blockchains can store information in a digital format. In cryptocurrency, they can maintain a secure record of transactions. This guarantees security in data records and eliminates the need for a third party as it creates trust. Readers should ask if utilizing the blockchain adds an unnecessary complication to the project.
Read cryptocurrency white papers carefully so you can take account of their potential benefits and risks. After this assessment, you can decide if you are interested in the project. Cryptocurrency white papers come from companies that have not yet released their products, meaning there will undoubtedly be many questions about the true applicability of the product. While reading the white paper, be aware of what you are looking for. It is also important to think critically about whether or not this project will truly facilitate the process it claims to. This will help you make an informed decision regarding the product.
Why are cryptocurrency white papers important?
Cryptocurrency white papers have begun to set standards for people who are researching cryptocurrency projects. Generally, the first step in researching these projects is to read their white papers. Based on this initial read, users can see if the project has enough potential. Alternatively, they can decide if there are any foreseeable obstacles. Users can also use white papers to hold companies accountable and make sure they are sticking to their initial goals. In making this information publicly available, the public is brought into the project’s creation process. Investors can decide whether or not to support the project, and people can decide if they want to join the process.
A white paper can also explain how its specific project is different from available alternatives in the market. This will help it distinguish itself. It doesn’t need to solve a problem that has been previously unsolved, but it should at least provide a better solution. After reading, the audience can also decide if they think the project is a good idea. A good metric for this is whether or not they will integrate it into their everyday lives. Overall, a cryptocurrency white paper should give the reader an understanding of the basics of the cryptocurrency project and how they plan to realize it.
How to write a white paper
Often, a product will use flashy materials, like brochures or flyers, to market their product. Conversely, a white paper is designed to provide substantive evidence, and should prove that the product would solve a problem. A white paper will generally have evidence like statistics to persuade its audience. It can also include lists or charts if data needs to be presented visually. Claims should also be supported by reputable sites, especially if the company is not fully established. Depending on the product, a white paper will differ, but they can be lengthy and have a more formal tone. White papers need to be researched well and flow logically, which will help get the reader to continue reading.
The white paper should introduce a topic or problem that is well defined and researched, and the information within it should be specific to the project and completely define the scope of the product. It is helpful to outline the white paper first, which will allow you to organize how you present the information and have it progress smoothly. The introduction should draw the reader in; one way to do this is by explaining the current problem or by providing a solution. The white paper should have formatting that makes it easy and clear to read, and different sections should be clearly marked. Finally, it is important to proofread it to ensure there are no mistakes. It can be helpful to ask others to look it over, as this can help you identify points of confusion.
How EDC can help
A white paper document is not just for cryptocurrency, but any project; indeed, a white paper is integral to a project’s marketing strategy. This informational document will present information of the product or service it offers, backed by research and data. It should present a problem clearly and then describe how they plan to provide a solution. Prior to the product’s launch, it can gather public support and even attract funding and investors for it. A white paper needs to be written well while also containing the necessary information for the general public. The tone and language both need to be easily understood so that readers are receptive to them. If it is done poorly, the project could fail before it is even released. This is why it is important to have professionals working on it.
Whether you need a single technical writer for a brief project or a team of consultants to produce a complete line of documentation, the quality of our work is guaranteed for you. Our clients work closely with an Engagement Manager from one of our 30 local offices for the entire length of your project at no additional cost. Contact us at (800) 221-0093 or sales@edc.us to get started.