If you are interested in monitoring emerging technology projects gaining market traction, you have likely come across the term "whitepaper."
Whitepaper is a comprehensive and authoritative guide that introduces a specific problem and provides a solution, aiming to educate the audience and promote a particular methodology.
Why are whitepapers substantial from a business perspective?
From a business perspective, whitepapers are substantial because they are utilized to advertise a product or service, build authority in the industry, and attract investors. They can instantly build interest by using relevant research and methodologies.
Typically, there are two types of whitepapers: technical and marketing.
- Technical whitepapers are for professionals interested in deep knowledge about a subject,
- In contrast, marketing whitepapers target the general public and executives who want to quickly comprehend the basics of products or services.
An average whitepaper will first state a problem, deliver data to prove its existence, and explain it thoroughly. After that, readers will be presented with a superior solution proposed by the particular project.
Whitepapers in the world of cryptocurrencies
Whitepapers are especially important for crypto projects, which are only beginning to build their position in the industry. Many individuals are skeptical of new technologies until they truly understand their nature, practical uses, and improvements over existing solutions.
As mentioned, crypto projects issue whitepapers to educate audiences on their products and services and support their credibility. The modern history of cryptocurrencies started with Satoshi Nakamoto's famous whitepaper on Bitcoin in 2008. Every published crypto whitepaper is, therefore, following the footsteps of the industry's pioneers.
What should crypto whitepaper contain?
A cryptocurrency whitepaper should include several key components to effectively communicate the project's purpose, technology, and potential benefits.
- Problem statement and its solution – problems or inefficiencies the project aims to address should be plainly defined along with explaining why existing solutions are insufficient. This may be supported by relevant studies or a summary of statistics. Whitepaper should also describe the technology, architecture, and protocols used to solve the problem - the more details, the better.
- Tokenomics – this section should explain the token's distribution, purpose, and utility within the network.
- Team – whitepaper should also introduce core team members and display their relevant experience, as well as any members of the Advisory Board and partners involved in the project. Building trust and authority boosts investors' confidence in the project and thus may positively influence their investment decision.
- Roadmap – project's roadmap has to be enclosed, with the current state of development, key milestones, and plans. Demonstrating a specific development direction and indicating how given goals will be achieved, is vital.
- Market analysis and legal matters – the current market landscape and how the project fits into it should also be included, as well as information about direct competitors. Whitepaper may also address legal respects, such as compliance, intellectual property, and any associated risks.
- Conclusion and references – after the conclusion, typically, there is a list of sources and references to support the project's claims and research. Overall, the whitepaper should be well-structured and comfortable to digest.
A "whitepaper" is a comprehensive and authoritative guide that introduces a specific problem and provides a solution. The purpose of a whitepaper is to educate the audience and promote a particular methodology.
They are commonly used to promote a product, build authority in the industry, and focus on the potential of technology to attract investors. Whitepapers are significant from a business perspective, as they are used to promote a product or service, establish authority in the industry, and attract investors.