When we are talking about a whitepaper its no referring to the color of the paper, rather it has a comprehensive meaning. A whitepaper is a convincing and intelligible authoritative paper that describes the problems and solutions of a specific topic. It comes with an in-depth discussion on a project, service or product and presents technicality and mechanism of that specific issue.
Cryptocurrency involves the use of a whitepaper that has to incorporate specific elements for proper clarification. It’s necessary to educate the audience about a product while promoting it. A well-crafted, well-thought, and thoroughly justified whitepaper will persuade the audience to use your cryptocurrency. That’s why writing a standard cryptocurrency white paper is essential. Keep reading to know how to write white papers.
What’s a cryptocurrency whitepaper?
If you are planning to create the next cryptocurrency, you first have to put your effort to write a document caring the minute details about the facts and figures. And, this document containing detailed information about the particular product, service or project is called a whitepaper. Hope you don’t have the question “What does white paper mean?” anymore. It is an old concept as business persons have been using it to introduce a complex issue to the stakeholders for a long time. But it has become an integral part of the world of cryptocurrency lately. Without a well-crafted whitepaper, cryptocurrency seems to be full of ambiguity.
Whitepapers and such concise and precise documentations have significant impacts on crypto trading. It helps the potential and prospective customers get necessary data about the currency and take an educated decision before using it. Usually, a whitepaper has the guidance and persuasive information to lead a customer to make a decision in favor of the company or product that you are introducing. You will be surprised to know what a whitepaper actually does when it’s crafted for a cryptocurrency. Check the following bullet list to know what is the purpose of a white paper!
- A whitepaper provides the reader with all essential information about the product or service in question.
- It guides the audience to make an informed decision and choose the product.
- It is not an advertisement copy nor a user’s manual; it contains factual information written in formal language.
- You will get to know both the problems and solutions regarding the currencies from crypto white papers.
- It comprises an accurate product description of the cryptocurrency which paves the way to perform a successful Initial Coin Offering- ICO
Elements of standard crypto white papers
The success of a cryptocurrency white paper entirely depends on the authoritativeness of the information it carries. If it can’t provide the readers with concise information about a complex issue, they will get confused about the authenticity and effectiveness of the particular cryptocurrency. So, understanding cryptocurrency white paper and knowing how to write it correctly should be of great concern. There is a standard format of whitepapers including introduction, presentation of a problem and solution to it, terms and policy, technical explanation and platform operation, etc. Read on to know how to write a quality white paper cryptocurrency.
Headline and Abstract are followed by an introduction. Here, you have to justify yourself to the readers and explain why you are creating this particular project. You can connect your points to recent economic, political, and global issues. The introduction should help the readers understand the importance and need of your product. You must introduce the problem and its solution to the readers in an engaging way to encourage them to keep reading.
Disclaimer discusses the right and power to apply the law from both users’ and the company’s end. It specifies the scope and limitation of rights and obligations that may be exercised during the ongoing relationship, and partnership among the stakeholders. It clarifies the legal aspects of the cryptocurrency in particular and regulations in general.
Table of contents
This section will give the readers a brief idea about what you are going to discuss throughout the whole paper. It will also contain information about the commencing page number of each chapter, section along with the titles. Table of contents is usually written on the page before the beginning of the main write-up.
Explanation of the market and description of a problem
Here you have to talk about the project and explain how your product is important in light of the current market. Then you have to present the problem descriptively to make it clear to the clients, investors or potential customers. This is where you hook the readers in the whitepaper and tempt them to find the solution in the next section.
Details of the product and its approaches to solving the problem
Present a robust solution to the problem introduced in the previous section. The solution must be well-explained. The readers must find it easy to understand. You should reveal the details of the products and its approaches to solve the problem in this section. You need to disclose the current state of your product and the development strategy of the project.
Tokens (How, When, Why, How many, etc.)
A token is a digitally encrypted string of data that gets created during the transaction. It’s very important for the whitepaper to have clear information about the usage of tokens. There should be precise data and detailed plan and layout in the whitepaper referring to the methods of spending the users’ money. Readers should get an idea on how, when, why they should use how many tokens.
The policy to use the raised funds
Once the funds rise into a considerable amount, the need for terms and policies to use the funds will arise. A whitepaper should have straightforward direction and well-described policy to use the raised funds. The policies may differ in terms of the type and methodology of the particular cryptocurrency.
The investors will not feel safe to put their money on the hands of some unknown people. That’s why you should introduce the team members and advisers profiles in your white papers. This will help you gain the trust of the investors. It also proves that you have a talented team to run your business.
A roadmap will depict the working plan for future endeavors. It will enlighten the readers about your mission and vision. It will keep the records of the key events which will take place during the development of the project. Usually, it is expressed through visuals instead of plain text. A roadmap will help the investors understand the expected growth of the project.
Consensus algorithm is an integral part of the blockchain network. It should be written in a technical matter and associated with mathematical proof if needed. Here, you will describe the mechanism of the algorithm. You will also discuss how your project is capable of fighting external attacks. The readers will know how the agreement is reached from this section.
Technical explanation and platform operation
You have already discussed the solution to the problem presented beforehand. Here, you will talk about the application of the actual system that solves the problem. The salient components of the network and its functions will be discussed minutely in this section. You should also provide the readers with a list of the stakeholders and the constituents of the ecosystem.
Explanations for the source code
There must be some well-educated readers who know how a blockchain project get created or broken. If you explain the source code to them, it will be more transparent and trustworthy. You can explain the programming technicality in this section to help the readers, especially the programmers, understand how your projects will work.
A whitepaper covers the ins and outs of the project in question. The investors will have the first impression after reading it. One will get to know the potentiality and feasibility of the project from a cryptocurrency whitepaper. So, it has great commercial value. Craft the whitepaper carefully to get the best outcome in commercial uses.
How to write a white paper?
You have known what comprises a white paper, now its turn to know how to write white papers. It’s not all about including the important sections; you must arrange them in the right order. Besides, the language of the whitepaper plays an important role. You should not use informal language while writing it. Don’t make it too long or too short. Describe the facts concisely. The first step to writing a cryptocurrency white paper is to prepare the format.
Prepare the format
All whitepapers must come in PDF format. This practice is common worldwide, and there are strong reasons behind the use of PDFs. You can easily distribute PDF files using the internet, and these files are still difficult to edit. For this reason, the chances of distributing fabricated whitepapers get reduced to a great degree. And, the author will be cautious while preparing the whitepapers as it will be hard to edit afterward. Don’t forget to maintain coherence between two consecutive sections. You can follow the order as we have shown in the section “Elements of standard crypto white papers.”
Set the length
Don’t go overboard with the words. More words don’t necessarily refer to more information. Try to describe more things in fewer words. This will help the readers pay attention to the whole whitepapers. Reading a whole lot of technical writing is boring. So, set the length as per you see fit depending on the amount of the information you have to offer. The whitepaper of Satoshi Nakamoto’s bitcoin project spanned eight pages. That was a super hit! But. It was dated back in 2008, and now you may have to go further due to the inclusion of more technologies.
Create the authorship
Plagiarism is strongly prohibited. If anyone finds out that you copied the text and information from other sources, they may find you untruthful. Hire a competent writer if you can’t do it yourself. Try to make the language readable yet informative and technical. You can invest in translating the paper into different dominant languages such as French, German, Spanish, Korean, Mandarin, and Russian to reach more people.
Determine the style
Remember that, the investors and the readers will go through the whole paper only if you can write readable and engaging content. If it is written in a hard and fast academic style, it will not attract the readers for a longer period. And, you cant use informal language in a whitepaper since it is a technical document. This is a real dilemma! The best way to deal with such situations is to follow liberal ways. Write the whitepaper in academic language but don’t be too choosy to pick the hard words instead of easy ones. Try to keep it concise and precise balancing between academic and business writing style so that it becomes easy to read.
Tips for creating great crypto white papers
You have already known the elements of a whitepaper and how to write it correctly. From the above discussion. Now we are going to offer you some special tips that will help you make those elements of a crypto white paper great and interesting. Read the following section to know how to write a cryptocurrency whitepaper efficiently.
The introduction should inform the readers about the technologies that are being used in the operation of the project. It should include the current situations of the industry and the obstacles to the growth of the business. You may also elucidate the schemes you have to overcome those hurdles and help the industry flourish. Give specific and factual information. Don’t present any vague description. The introduction shouldn’t sound academic; rather a friendly tone is preferable. Just introduce the readers to the outline of the problems and suggested solutions to them.
Market and problem explanations
You need to discuss the market and how the present economic condition is connected with your project in this section. Explain the problem to the readers and give them a clear idea about the feasibility of this project. There must be some factors that will inhibit the development of the project. You have to address these hurdles and convince the investors that these obstacles are surmountable. Showcase your problems with graphics, diagram and any visual content as per need. Some information is better comprehensible when shown. After presenting the problem, keep your focus on the solution and the potentiality of your project.
Product details and its practical potential
This section is very important. The success of your project largely depends on the data you will present here. Take as much space and words you need to discuss the product. You can talk about the technical details, the development strategy and how that strategy will help you solve the problem. Don’t use salesy tone, rather give information to the readers so that they get educated about your product. You can also introduce the prototype data as investors have a tendency to judge the practical implementation of a project rather than theoretical ones. Most importantly, you have to prove your point here and make them understand that your cryptocurrency project has a bright future in the blockchain industry.
Tokens & fund utilization policy
Tokens have a big role to play in cryptocurrency. Define the functions of the tokens as clearly as possible. A token will be more valuable if it is associated with more utility. If any ambiguity appears about the token, the investors will not feel safe to deal with you in terms of financial investment. Clarify the token usage guidelines in the whitepaper so that the investors and the readers understand that you aren’t going to spend the money to facilitate your lifestyle instead of building the product and developing the business. The whitepaper must contain a detailed plan and layout describing the fund utilization policy.
A complete roadmap
This is an overview of the whole project. In this section, you have to depict the mechanism and procedures you are going to implement. Make the investors aware of the ways how your business is going to expand. It also enhances the accountability of the project developers as they will be held accountable for any deviation from the roadmap. This roadmap should include the future work plan for the next year at least. You can use diagrams and infographics to make this section easily understandable to the readers.
Never leave any technical data unattended in any section of the whitepaper. The use and development of cryptocurrency involve many technicalities which may not be clear to the general readers. But you should write the paper for them who understand these technical details. You can use visuals if needed. Some people write two whitepapers. One is loaded with technical details to make the projects clear to the stakeholders and another for a wider audience who aren’t technically literate and scientist.
Commercial application details
A whitepaper plays the most significant role while proving the viability of a project. This is the first thing your investors will read so the commercial value is beyond description. So you should give a detailed explanation about the commercial, technological and financial details about the new cryptocurrency you are going to offer. A good project backed up with a great whitepaper will attract the investors, particularly investors who understand the potentiality of cryptocurrency.
Who are on board?
You must introduce your team members and advisors to the readers in this section. Make sure that you have some competent and talented people on board. Its impossible to develop a cryptocurrency business without the involvement of experienced people who worked in the blockchain sector. A bunch of newbies will lead your project to nowhere but failure. So choose the team members wisely so that your project ends up being on the winning side. Besides, the inclusion of professionals in the team will enhance the authenticity and credibility of your project. You have to introduce the team members along with their relevant background history on the whitepaper.
The design of a whitepaper
The first impression lasts long. That’s true about anything. If your whitepaper can captivate the readers right away, the readers will be prompted to go through the whole article. You can focus on the cover page, use of proper images, graphical presentations, etc. a well-presented whitepaper paves the way to the success of a cryptocurrency project. Keep the following points in mind when you’re going to design a whitepaper.
The cover page
Don’t forget to keep the look trendy, sleek, neat and professional. Choose a cover page that talks about your project. Make it as relevant as possible. Don’t keep it too colorful as it’s a formal document consisting of technical information about your product or service.
Use of visuals
Long uninterrupted text may seem tedious at times. The efficient way to engage the readers is to use interesting visuals such as diagrams, graphics, infographics, etc. to explain the product very well to the readers. It will give the readers relief from the monotony of the content.
Dos and don’ts of crypto whitepapers
You are going to present your whitepaper while auditioning for ICO approval. So, no mistake or ambiguity is allowed here. Don’t fall victim to the following common pitfalls.
- Avoid making mistakes in spelling. This is so unprofessional and will create a bad impression about the sincerity of your effort.
- Discuss all the details from an objective point of view, put your personal opinions aside.
- Don’t present unrealistic goals and objectives. Keep the roadmap feasible.
- Pay extra attention to the format. Ensure that there’s consistency in the design, format, and style of the whitepaper.
- When everything is complete, check the whitepaper thoroughly and conduct a final edit.
A list of the most successful whitepapers
Well! Its time to look for inspiration. Some companies are already successful in the cryptocurrency business. If you are wondering how to write a white paper template, these successful whitepapers will be of great help for you to get useful ideas. You can see the successful whitepapers from the following list.
- ETHEREUM: A SECURE DECENTRALISED GENERALISED TRANSACTION LEDGER (Ethereum)
- Digix’s Whitepaper: The Gold Standard in CryptoAssets (DigixDAO)
- Bitcoin: A Peer-to-Peer Electronic Cash System (Bitcoin)
- Filecoin: A Decentralized Storage Network (Filecoin)
- Providing liquidity to the non-LIQUID Crypto Economy (Quoine)
No matter how good a project is, improper presentation and lack of information in the whitepaper will not do justice to your effort. If the whitepaper isn’t well-crafted, rest assured about the failure of your project. Because the whitepaper is the first weapon to hit your target. Hope you have in-depth knowledge about what is a whitepaper and what is the purpose of a white paper from the above discussion. If the readers, as well as the investors, are exposed to inadequate, unrealistic data, they will not consider your project as a viable one. That’s why knowing the right ways to write a cryptocurrency whitepaper is very important.