How to write a white paper for cryptocurrency project

0

How to write a white paper for cryptocurrency project

None of the aspects of cryptocurrency so the project does not affect its public perception, as the white paper. This document acts as a collection of symbolic milestones in the development and carefully designed goals. It sums up the methods, processes and resources needed to successfully start. Those who are familiar with the blockchain projects, ‘ve read a lot of foreign white paper. Unfortunately, often these documents are very vague because of the inability of authors to clearly Express their thoughts and to use only terms that the average reader.

Spelling and grammatical errors, and most importantly — conflicting information — a sure sign that the project something is wrong. To write a good white paper is harder than it seems: it needs to describe in detail the technical aspects of the project, remaining relatively clear for the General public. This is especially true for altcoins, because most of the readers of the white paper in this case, the excavation not related to the academic field and not having special knowledge.

To help both authors and readers of the white paper, we review the main characteristics of these instruments and highlight their essential elements, which simultaneously inform the public and attract investors.

What is white paper

The white paper contains a detailed description of the project, product or service in which the emphasis is on technical and sectoral detail. It is not intended for the General public, and familiar with the specific industry. This is a report on yet unsolved problem and offers a way of solving it.

Crypto white paper is a comprehensive review, which often is of a technical nature. Typically, the document is being issued in anticipation of the ICO, although technically may appear at any time. The structure of the document in different projects can vary, but usually present technical, commercial, financial and personnel information. All this gives the reader an idea about the project goals and ways to achieve them.

In the world of the block chain, you can find the white paper of varying degrees of readability. Some may be too academic in nature, available only to the most educated professionals, while others omitted the technical information and turn into marketing brochures. This, of course, increases readability and attracts a wider audience.

Writing a white paper should be given much attention because they act as a perpetual repository of information that stores all the basic details of the crypto project. There is nothing more significant than a technical document, and a smart investor knows that without his careful analysis we should not make any decisions.

Good projects have a responsible attitude to all his texts. They proudly post links to white paper in the most conspicuous place of their websites, and the hype surrounding the white paper on Reddit and Twitter reaches colossal proportions.

Why investors are so interesting white paper

What is the role of white paper from the point of view of investors — the primary target of the project? White paper creates the impression of a startup. The right technical document shows how well prepared the team is and how much she believes in the success of the project. For the white paper must be command, and that it will undergo rigorous scrutiny by potential investors.

Ambiguous statements and misleading information will not stand up to public examination the cryptocurrency community. Several ICO tricked naive new investors, and around these machinations, the growing discontent both inside and outside the community. White paper help to be protected from such unethical behavior.

Cryptocurrency veterans know how to identify suspicious projects only one white paper. Matters related to financial queries ICO, the reliability of the technological architecture and the practical significance of the project should be clearly outlined in the document.

Experience shows that the success (or failure) of the project largely depends on the technical documentation. If you are serious about your project and white paper should be treated no less seriously.

For the reasons described above an experienced investor will examine your technical documentation under a magnifying glass. Of course, beginners will be harder to sift through the technical jargon that fills the white paper. The technical language of crypto-currencies is what any enthusiast of cryptography is able to learn, but the evaluation of the technical possibilities of the project and the team must not take too much time.

Thus, in the white paper should include the abstract, clearly built by the team to convey to the readers the validity of the existence, commercial viability and technical sustainability of the project. These criteria must be met in order to earn the trust of investors — and much more, if the project plans to participate in a full-fledged cryptocurrency marathon, competing with giants.

Of course, it’s not easy, because, as we have said, a technical document must juggle authoritative information about the project, and remain available for the less knowledgeable minds of public investors. It serves as an introduction and encyclopedia.

Let’s look at what you need for a good document and how to write.

Format white paper for cryptocurrency project

White paper — an official document that must conform to a specific format. The General scheme is usually as follows:

we present the problem;
solution;
technology;
platform and processes that meet the principles of problem solution;
applications (use cases) solutions;
team;
resources.

Verifiable statistical information is of great importance and adds to the credibility of the technical document. Often, in the white paper you can see the complex mathematical and scientific calculations. They can be understood only elected, however, it is a sign of devotion to the team project because the calculations are not so easy to fake. Do not expect that readers will be able to deceive about computing!

White paper is usually produced in PDF format. PDF files are easy to distribute but hard to edit. It makes the author or authors to be careful in the preparation of the file: if there will be errors, it will deal a severe blow to the reputation of the project.

The volume of technical documentation depends on the information that you want to cover. There is no need to write a document consists of more than 30 pages — a large amount doesn’t make it better. Of paramount importance is the quality of information and document, as a rule, can be compressed to a reasonable length. To detect and eliminate “water” is quite simple.

To reach a wider audience, is to provide a white paper in multiple languages. If you spend money on professional translations, technical document will receive a higher rating from the community.

The languages that should use of: Mandarin, Korean, French, German, Spanish and Russian. Multilingual will be an additional evidence that the project is making every effort to be heard.

As for the tone of the document, it should be neutral. Academic language suitable to explain the technical architecture and solutions, but avoid complex terminology and jargon. It would be a mistake to make the project understandable only for the elite, but do not flirt with the audience.

Of course, plagiarism is unacceptable. It will scare away readers and show them that the project engaged in dishonest and lazy people. Even if you write about a well-known aspect of the cryptocurrency sphere, for example about the history of the blockchain, use your words. If you’re into cryptocurrencies, you should have enough knowledge. Cryptologist not easy to cheat, and laziness and incompetence will be quickly revealed.

Key elements of the cryptocurrency white paper

It’s time to consider in detail the elements of the white paper. Running look the technical documents for different projects, you can see that they are very different from each other depending on the specifics of the startup. But in all of them, as a rule, there are (or should be) the sections described here.

Abstract

In the research the abstract describes the purpose of the project problem and proposed solution, as well as technical innovations designed this solution to ensure.

Abstract presented in every white paper. It is rather peculiar to academic work than documents designed to attract attention to ICO. For example, Satoshi Nakamoto outlined in his white paper the problem of centralized systems, proposed a solution to the problem of double spending and provided a brief description of this solution.

Though it is not a mandatory part, the essays help the reader to know everything important in a summary form. If due to this the interest of the reader will be warmed and it will read the entire white paper, you tried not in vain.

Introduction

It makes sense to inform the reader about the specific areas which will be involved in the project: not all readers may be aware of. The introduction can inform them on the current situation and the obstacles to growth. Next to be described, as using the blockchain will be eliminated these obstacles and modernized industry.

The enumeration of specific factors that hinder growth of the industry (accurate with actuals), gives potential investors a healthy understanding of the need of the project. You can write about the possibility to solve problems in the shortest possible time, without giving ahead of time in the technical details.

Membership requires academic tone. It will most likely need to gently inform readers about the problem and possible solutions. Tables and calculations are better left to subsequent sections. What the reader will get a General idea about the scenario, will make technical aspects more accessible.

White paper on the Ripple Protocol consensus — an excellent example of presenting information, ranging from the entry. This document deserves you to read it.

Definition

It is further recommended to define a list of important and frequently used in the document terms. These terms may be common or unique to this project. The reader will be able to return to this topic with further reading white paper.

Start, for example: “here are the definitions of specific elements involved in the work of the platform…”

Zcash for quite deftly coped with this challenge in its white paper, defining key terms, both formally and informally.

The algorithm of consensus

As an integral part of the network of the blockchain, the consensus algorithm requires a detailed description in the document. This section is usually filled with technical details and mathematical proofs. If any consensus algorithm is unique, it is possible to compare with other algorithms, emphasizing its advantages.

This section also needs to be described the actual working mechanism of the algorithm is how an agreement is reached. It should also write how the system protects itself from external attacks such as the attack 51%. If additional protection is important to report it.

Solutions

Here the white paper is transformed into a real technical documentation. Each blockchain has different elements that work together to provide the solution of the stated problem. In this section you will need the subsections relating to each individual component of the solution.

IOTA academic language describes solutions to your white paper. White paper project is structured in such a way that even the expert in this field will have to strain to understand the mechanics of the process.

On the other hand, technical document OmiseGo (OMG) juggles clarity and technical exposure. Pay special attention to how authors used step-by-step example in the “Bitcoin proxy” to explain the transaction process. The section is preceded by a description of what a Clearinghouse is and why it exists, and its role in the platform project.

This section discusses research and technical evidence. Serious projects like IOTA confidently explain their mechanisms of scientific and mathematical arguments — the fact that you can’t fake.

In this section there is no place for concepts. Only the bare facts. Any simplification and unclear wording should be reworked.

Technical architecture and platform operations

Once you have offered a solution to the problem, it’s time to imagine how they will be applied in the real system. The main components of the network Protocol and each function should be discussed in the context of the explanation of their existence. Not every project tells in detail about the exact architecture of your network and should be.

The previous two sections conclude the main part of the technical material in the document. Now all this time to accompany the explanation of how the platform interacts with various stakeholders in the ecosystem.

To start is to list the stakeholders and components of the ecosystem. Plus there will be a chart. How tokens provide interaction between the various parties?

As an example, well-designed technical architecture can once again lead IOTA.

Information about the token

To ensure full transparency, the projects often list funding sources in their documents. Investors will also learn what will be spent of their money, and get acquainted with the details of the token system.

This part of the document contains only financial information about the project. List information about all the financial support that was received, and navigate to the quantitative indicators, associated with the token. Look at the white paper TenX detailing selling of tokens and the allocation of funding.

Road map

Describing the project and its technical aspects, it is time to explain to potential investors the way that the intended command.

What are the major milestones in technical and financial terms? How and when will internal modifications to the blockchain? When the platform becomes fully public? These are just some of the questions that need to be addressed in the section Road map.

Network token Golem offers a beautiful road map that deserves admiration.

Use cases / commercial applications

This is one of the most important aspects of the document: not only because it covers the place that the project will take in the real world, but also because it is one of the few topics that will be instantly understandable to every reader and of particular interest to investors.

It is essential to describe how the project will find its application in commercial use. In the end, the project can be supported by perfect technical and mathematical features, but this advantage is lost if commercial application is not obvious. How the project expects to receive income? What concrete results will the introduction of the technology?

You can also say about potential partnerships with companies that will accelerate the recognition of your project and will help spread the use of the platform: this is a very important aspect of the potential. In fact, this is the section that convinces investors to invest.

Team

The community would love to hear about the people behind the project. Investors are very interested in their experience and skills. This also applies to the project consultants: a group of famous advisers will increase the confidence of potential investors.

Links

Here everything is clear. In the links section lists various resources that were used in the preparation of the material.

The source code of the white paper

Many educated members of the community, and especially developers, know that the base technology on which to build on programming, is the most important issue determining the success or failure of the project.

Reading source code is an indispensable method of studying the project. White paper in a sense translates the source code into human language. However, when the translation much is lost.

The blockchain (and in many other areas, given that the world is becoming more digital) the ability to program is an indispensable skill. Owning it is easy to find possible inconsistencies between the intended characteristics of the project and its actual technical code.

Accounting white paper, remember that the source code of the project functions as a second white paper. The source code should reflect the transparency that is stated in the document. Posting source code on GitHub, you can receive criticism — both constructive and destructive — from those who are well versed in the code.

The fact is that clarity, transparency and accessibility, people expect to see in a technical paper are not limited to white paper. These are the basic principles for the whole project and the whole work team.

Dishonest projects will be caught on the bad code, but a sincere, invested in your skills, have nothing to fear.

Why white paper is so important

If you initially doubted, to this moment you most likely became clear that high-quality white paper — an essential element of cryptocurrency project. It is a written commitment on a global public platform.

From a practical point of view white paper should attract investors. If the technical documentation looks convincing, investors can and do make a positive decision, and tell about the project to their friends, increasing its potential.

White paper — effective method of marketing. First, the cryptocurrency community requires a document to assess the viability of the project. Given the market boom last year, official documents have become a form of validation of new projects.

White paper with enthusiasm extend to Internet forums and social networks that gives the project a large-scale audience reach. This is another important reason to spend time and energy on the preparation and publication of technical documentation.

Conclusion

The drafting of a white paper can seem like a daunting task, but in today’s oversaturated Cryptoprotected, alas, can not do.

Nevertheless, a good team should have problems with the collection and processing of information necessary for the compilation of the white paper. Feedback and discussion will help to find a balance between accessibility and seriousness of technical information. To read the documents already released various cryptocurrency projects, visit the website whitepaperdatabase.com.

Today, a good developer can prepare their own blockchain for half an hour. On the one hand, this accessibility gives rise to poor or pointless products, but makes it easier to create useful and innovative blockchains. It is something like a double-edged sword. In the second case, high-quality, thoughtful white paper for a startup creates a reliable base, helping to inform about the project to professionals and the public.

Leave A Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.