The cryptocurrency white paper can explain the goods and objectives of the project to its audience. The project can choose the type of information you want to provide at will, but generally speaking, the white paper will give a brief description of the project objectives, token economics, commodities, functions, and the development team information. Therefore, the white paper may be a good breakthrough when researching its specific projects. So, what exactly is the cryptocurrency white paper? What are its main contents? Next, let's have a look.
What is the Cryptocurrency White Paper?
In general, a white paper is a report or guide designed to provide readers with detailed information on a specific topic or issue. For example, developers can create a white paper on their software to introduce the content and purpose of the software to users.
However, in the blockchain field, the white paper is a document that outlines the basic functions and technical standards of a specific cryptocurrency or blockchain project. Although many white papers are aimed at monetary projects, they can also be based on different types of other projects, such as decentralized finance (DeFi) platform or entertainment projects while playing.
The white paper may outline the basic data in the form of statistics and charts. In addition, the white paper may also introduce the project management system, operators, and its current and future development plans (i.e. roadmap).
However, there is no official format that must be followed when making white papers. All projects can make white papers independently according to their own specific conditions. Ideally, a white paper should be neutral and rich in content, which can clearly explain the project content and objectives to the audience. If the project white paper uses inductive language and makes too much commitment without providing sufficient information, the customer should always be cautious.
The cryptocurrency white paper provides investors with a comprehensive project overview, so it is generally called the business plan of the cryptocurrency project. But unlike business plans, white papers are often published before the cryptocurrency is released. Therefore, the white paper is generally a breakthrough for everyone to master the development orientation and goals of cryptocurrency projects.
What are the main aspects of the white paper?
First, select people and platforms
It is particularly important to find reliable people and platforms here. In fact, it depends on whether their articles are closely analyzed and verified several times in the market.
II. Industry Background
The development of something is regular, which means that the transformation is normal from simple to deep. Unlike some projects, which do not need to use blockchain at all, they also want to establish a world here. As investors, they should fully consider.
I don't believe that a person with a large span of career change can make rapid achievements in the short term. I believe that no matter the projects launched by the manufacturing industry or the Internet companies, blockchain can make them more successful.
For example, Xunlei downloads, and the recently launched distributed system has a particularly high probability of success.
III. Profit model
If there is a project that clearly describes the development potential of the profit model, it is practical and quantifiable without fancy words. That's optional.
In fact, he is not sure that many projects will be profitable. In order to cheat, he will give you big words.
From the real white paper, the level of analyzing a project is proposed.
IV. Project construction
What kind of technical solutions are used. We need to look at the technical solutions in the white paper. It is useless to summarize many advanced technologies. The solutions for later operation are very important. How to build the community, how to circulate the currency, and how to implement the project.
V. Team
The team accounts for a large proportion of these, and the blockchain is also people-oriented. It is useless to say anything when leaving reliable people. The founder is the most important.
VI. Consultants and investment institutions
Blockchain is a relatively new thing, which will overturn the original negotiating logic of Wall Street. The investment of these venture capitalists on Wall Street is also considered at multiple levels. Therefore, looking at investment institutions and consultants is also a level of project consideration.
Speaking of this, I believe you have a certain understanding of what the white paper on cryptocurrency is and what aspects it contains. In general, the white paper is a very important thing. If a digital currency project does not have a white paper on the currency circle, the project is probably air currency or pyramid selling currency, so you can also judge the characteristics of a virtual currency from the white paper on the currency circle. But because the white paper is not controlled, everyone can write it. Therefore, if you are interested in a project, you must specifically analyze its white paper and pay attention to the hidden danger signs and risks.
