Understand cryptocurrency white papers in just 3 minutes

Document generally intended to explain the origins of a project or the specificities of a technology, the white paper also exists in the world of blockchain and, by extension, cryptocurrencies. Its role, in addition to being informative, is aimed in particular to convince users of the seriousness of a project and its growth potential.

What is a whitepaper?

Behind every cryptocurrency, there is one or more creators. This person or these individuals have an idea, a vision and an answer to a problem they feel they have identified. In the world of cryptos, white papers are of paramount importance. They have the mission of present the project to all future users. This document is also an essential element of fundraising offers (ICO = initial coin offering), since it will aim to inform and encourage investors to join the project.

Of variable length (from a few pages to several dozen), the white papers are mostly technical and relatively difficult to understand for beginners in cryptocurrencies. Often because they are written by the developers themselves!

How is a white paper written?

Whatever its length, the white paper must convince the reader, especially if it is an investor. The topics covered can be numerous. They must in all cases contain:

  • a roadmap who defines the objectives of the project
  • technical feasibility
  • the time needed to achieve this
  • the number of tokens put into circulation
  • the token price
Solana White Paper: A Description of Exchanges

Other information may also be included, in particular that related to the risks of the project, a timetable for future actions, etc. The more information there is, the more credibility the white paper gives to the cryptocurrency, even if the success of a crypto is not measured by the length of its white paper.

famous white papers

The proof: the Bitcoin white paper, the first to have been written on a crypto, is renowned for being a model of simplicity. It is “only” 8 pages long 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 Is it too late to invest in Ethereum, the answer is no, here’s why!

Conclusion: an absolute pledge of guarantee?

Well no. As serious and complete as it is, a white paper will never guarantee the success of a crypto project. Some ideas can be dropped along the way and others changed without warning. In the most extreme cases, project leaders can even leave with the cash at the end of the ICO! (we then speak of an exit scam).

Intended to convince on the real usefulness of a project, the white papers are almost never read by crypto-fans because of their complexity. Our advice is to take a look at it anyway to understand even the purpose (and philosophy) of the project.

Another less difficult solution, go to social networks (Twitter, Reddit, Telegram, etc.) and internet forums to read the opinions of those who have read them (and understood!). Their comments will make it possible to know if this project inspires confidence in the community.

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