A white paper is a guide that provides clear and understandable information about a project, explaining its aims and objectives, technical specifications, and working principles.
What Are the Types of White Paper?
White paper is a kind of marketing method to generate business between individuals and organizations. There are three main types of white papers, different for startups, government agencies or companies:
- Backgrounders
- Numbered Lists
- Problem / Solution
Backgrounders
It is a method of explaining a new service or product in all its technical details. Backgrounders are written to explain complex information in a simple way.
Numbered Lists
It is written to describe in detail the main benefits of a new service or product. It usually seeks answers to questions such as:
- 3 Questions to ask about the project and answers
- 10 Tips about the project
- 5 things you need to know about the project
Problem/Solution
Problem/solution whitepapers focus on what problems a potential user is facing and explain how the new product or service they are developing offers a solution to these problems. These are as follows:
- Create new acquisitions
- Training the procurement team on products and their features
- Generating interest in the sector
What Is Cryptocurrency White Paper?
A white paper summarizes important information and details about any blockchain or cryptocurrency project in a single document. It is the preferred way to explain the project in the most credible way and to instill confidence in the other party about the project and the product. The white paper describing the technical infrastructure, roadmap, goals and objectives of Bitcoin was written in 2008 by a person or persons named Satoshi Nakamoto. This document was also published in an e-mail group called the Cryptography Correspondence Group. This was the first step towards a secure peer-to-peer payment system.
White papers for cryptocurrencies explain both the technology and the projected economic structure of the cryptocurrency in question, and clearly summarize the products and features for the potential user. The white paper explains to potential users and investors the purpose of the project, the solution to the problem and the sustainability of the project. In general, a cryptocurrency white paper is written by the manager or developer team of the cryptocurrency in question and serves as a 'guide'.
While white paper content usually focuses on tokens and coins, DeFi projects also have white papers. A white paper describes the governance structure of the project, who contributed to its creation, and the roadmap of the product or project. A blockchain or cryptocurrency white paper should be neutral and informative to clearly demonstrate its objectives. The white paper usually also provides insight into how any cryptocurrency project will contribute to the real world. For instance, it can explain how the project will improve the current situation.
Why Is White Paper Important?
The white paper is of great importance for crypto assets. The fact that this project can be viewed by potential users and competitors is also important for the company's reputation. The first recommended way to learn about a cryptocurrency is to read its white paper. For this reason, the project's white paper should be written in plain and simple language in an explanatory manner, taking into account the audience it may address.
How to Read a White Paper?
The most reliable source of information about a cryptocurrency project or product is a white paper created by the cryptocurrency's own developers or team members. But how should we read these seemingly complex white papers?
First of all, a white paper includes a title, a disclaimer, the purpose of the project, the problem/solution methodology, the offering and rules of the cryptocurrency, the project team and the roadmap of the project. Before you start reading a white paper, you need to know a little about the project and what questions you need to ask for answers to. These questions can be as follows:
Does the project have a valid idea?
How will the project solve this problem?
Does the team have the technical skills to realize the idea?
How do they plan to implement the idea?
What is the use of blockchain technology in the project?
It is also helpful to be as familiar as possible with mathematical calculations and graphs to get the most out of a white paper or white paper that clearly discusses every aspect of a project or product.
What Are the Differences of White Paper and Lite Paper?
Simply put, a 'lite paper' can be thought of as a more concise version of a white paper. More practical to read than a white paper, a lite paper helps to attract the attention of the person or people interested in the idea or project more quickly.
A lite paper serves as a summary for those who want to learn about the project, product, or service but for various reasons cannot review the white paper. A lite paper is usually shorter and contains less technical information.
