The term “white paper” is often heard when a new crypto product is introduced. A white paper informs the public about the latest innovations by a company to provide information about the new product. With white papers, companies can persuade consumers to invest in their products.
What Functions do White Papers Serve?
In the crypto space, a white paper is a document that details the problems that a project wants to solve. Previously, white papers were used by the government as a tool to explain the results of research that had been done. But now, it is used by many industries as a way to introduce new products.
In crypto, white paper is commonly used to conduct Initial Coin Offerings (ICO) or in the first stage of token introduction. This document has a very important role because it introduces and provides accurate information about a crypto project to the target market. Bitcoin, which was the first crypto asset, also used a white paper (distributed via email) as the first step in introducing their product.
There are many things that can be described in a white paper, but most of them include these key points:
- Product introduction and foreword
- Disclaimer: responsibility
- Table of contents
- Explanation of the background of the problem to be solved and the target market
- A detailed description of the product and how the product becomes a solution
- Explanation of the tokens to be distributed: how many, etc
- Details of the funds raised
- Introduction to the team behind the ICO project
- The long-term plan of the project.
As a document that describes the details of a crypto project, the white paper needs to be easily accessed by the public. This is because it is a source of information about the project to be implemented. Usually, white papers are published on the project’s website or distributed through other crypto forums.
Types of White Papers
There are three types of white paper, each with distinct functions. The first is the backgrounder, which focuses on the benefits of a product and the methodology used. There are also white papers that focus on explaining how the product solves the problem with detailed background information on the problem itself. The last is the type of white paper that presents statistics or research along with important information about an industry.
Regardless of the type used, a white paper must be able to provide a clear picture of the capabilities of a company or project. This is important because the white paper is used by the public as a source of information.
How to Compose a White Paper
Writing an attractive white paper is a must. This is because it needs to attract the public to become new users of a crypto product. If a white paper is uninteresting and vague in explaining how a crypto product can be a solution to the problem, then it is likely that the audience will not be interested in becoming a user. In addition, a good white paper must also be able to explain the product with detail and accuracy. Here are some things to consider when writing a white paper:
- Interesting opening
The opening is one of the most important factors in a white paper. This is where projects put disclaimers or important notifications about the product that consumers need to know. Examples could be things that need to be watched out for in investing or risks that potential users need to pay attention to. In addition, a good opening requires an interesting introduction. The foreword is made in the form of a cover letter from the CEO to potential users. In the opening, it is also important to explain the root of the target problem and how the product can be a solution to it. This can be done in interesting ways while also providing detailed information, like using visualizations such as charts, graphs, etc.
- Asset/product introduction
In a product introduction, there are many important things that need to be explained. In a white paper used by a crypto project, there must be a description of the prototype data used, who the first users are, the development strategy, and the long-term goals of the project. This explanation is very important because investors are only interested in supporting a project with clear origins and future prospects in the crypto market. If these aspects are explained clearly in the white paper, then users will be more interested in investing.
- Introduce the team behind the project
A project cannot run without a team. The introduction of the team in the white paper is not only an appreciation of their work but also an explanation of their role in product development.
How did you like the explanation above? Have you ever read a white paper owned by a crypto asset? If you are interested in a new crypto asset, we recommend that you read its published white paper first to understand more about the asset. If you are a crypto beginner, it’s a good idea to start with assets that are already trusted. On Tokenomy, as a beginner, you can make crypto investments easily. Come on, start investing on Tokenomy!