When investigating about cryptocurrencies, many run into concepts and information that they know little or nothing about. Its purpose, function, reason for existing, these are many of the questions that remain in the minds of new users. All these answers are in the white paper of these cryptos. However, few know what it is or how to interpret them. In the present article we will try to clear up the doubts. We hope it helps.
The conception of the White Papers has existed for a long time. Used in the world of marketing, business and technology, it has served for the development and explanation of problems, and their possible solutions. However, in recent years it has been given a more inclination towards cryptocurrencies.
In the cryptoworld, a white paper is that document that contains all the information about the project in question that you are wanting to launch. Thus, it establishes all the facts about the Blockchain, the function of the tokens, all about the protocol or the distributed application that is built.
Some of these white papers are an extensive and technical explanation of the project in question, and others are something much shorter and less specific at the time of making their explanations. Others only use it as a means of marketing their ICO. The first cryptocurrency in the world, Bitcoin, was born in its conception of a White Paper, and the case of Ethereum as well.
Even though there is no basic format for creating a white paper, many experts believe that, in order to gain confidence in the public, these documents must contain a series of elements. The first one is why the project was born as such, what you want to achieve with the creation of this cryptocurrency or Blockchain project. Another important point is why they consider their project necessary and solve the problem for which they were born.
Another important point, but which many consider to be a separate document, is the road map of the project. This is a timeline for the creation of products, developments or achievements that you want to reach with the project. Finally, in case of being an ICO, the means for distributing the tokens and the technical information of said digital currency.
Now that we understand what a white paper is and what it should be, it is necessary for beginners to understand how to interpret these documents. First of all, to understand a white paper, it is necessary to mark each concept or technical word that we do not understand. Thus, we can investigate its meaning, use, usefulness, and we can better understand what the developers of these projects are talking about.
Second, it is important to read carefully the birth and function of the project, in order to correctly understand what the ICO was born for, the application or the Blockchain-based project, and understand its possible use. In case of being an ICO, we must also carefully read your technical information, such as the total amount or total supply, the period of sale and the amount to be collected.
All these points will help us correctly interpret a white paper and know if the project is reliable or not.
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