Crypto Whitepapers Explained
What are crypto whitepapers?
When new crypto projects are launched, a whitepaper is released during its initial coin offering (ICO). In simple terms, a whitepaper is a document that details a project’s concept, roadmap and how it plans to grow in the future.
Whitepapers are a staple in crypto, but they’ve actually been around for much longer. The very first whitepaper originated from the British government around 100 years ago, and was created to inform the public about key decisions made by government agencies.
Fast forward to today, and whitepapers are used by many to inform investors about how a crypto project works, the technology behind it and how it stands out from competitors. It is essential for crypto start-ups to have a published whitepaper, as it is a key element that determines a project’s legitimacy.
What does a crypto whitepaper include?
Crypto whitepapers are packed full of information and are often around 25 pages long. But what do they typically include? We’ll give you the lowdown:
- The problem and solution – this section is where the project is introduced, including the problem it intends to solve and how it will achieve this. The solution provides details of the full product description, as well as a market analysis to show the exact need for the product and how it fits into the existing market.
- Token information and marketplace consideration – when starting an ICO, there’s certain information that is vital for investors to know. This includes details surrounding the new crypto tokens, such as their value, how many will be in circulation and what platform they will operate on. Whitepapers should also include how investors can redeem their tokens, as well as details on what will happen if the ICO doesn’t reach its funding targets.
- Technical description – an important part of any crypto whitepaper, this section explains the technical aspects and the technology behind the project.
- Project timeline – this outlines a working plan for the next few months, including what will happen, when sales will start and when the token will be launched.
- Team and advisors – this introduces the founders, employees and advisors behind the project. Much like the technical aspects, this is also a crucial factor as it provides important information on the team’s skills and experience and its relevancy to the project.
Bitcoin’s whitepaper turns 13
Did you know that Bitcoin’s whitepaper turned 13 this Halloween? First published on October 31st 2008 by the anonymous Satoshi Nakamoto, Bitcoin was the first decentralised cryptocurrency to offer a peer-to-peer online payment system without the need for a bank or financial intermediary. It also proposed a solution to prevent double-spending by “hashing transactions into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work". In other words, transactions that are recorded on the Bitcoin network cannot be changed once they have been validated.
Despite initial scepticism, thirteen years of community support has made it one of the most profitable investments of the digital age. So much so, that it’s even considered to be “digital gold” by many, and despite its volatility, remains the top cryptocurrency with a market cap of over $1.17 trillion.
Crypto whitepapers are the first crucial step in attracting investors to a project. It is essential to provide as much detail as possible about the project and why its token is worth investing in. A well-written and detailed whitepaper is key to gaining investor interest, as well as ensuring a project’s success.
Introducing the New Wirex Whitepaper & Nereus
We’re delighted to announce the release of a brand-new Wirex Whitepaper. This document reaffirms our commitment to uniting the disparate worlds of fiat and cryptocurrency, reveals several new fintech and DeFi innovations and outlines an extensive overhaul of our native token, WXT.
You can find out more here.