The Importance Of White Paper In Cryptocurrency
The first crypto whitepaper defined an era. Doing it right can draw you investors with million-dollar commitments
White paper, according to Investopedia, is defined as “an informational document, usually issued by a company or not-for-profit organization, to promote or highlight the features of a solution, product, or service.”
Wikipedia’s definition of a white paper is “an authoritative report or guide that informs readers concisely about a complex issue and presents the issuing body’s philosophy on the matter. It is meant to help readers understand an issue, solve a problem, or make a decision.”
The first time the term “White Paper” appeared was with the Churchill White Paper of 1922 in the British Government. British explorer Gertrude Bell was the first to write a whitepaper in 1920. It actually refers to the document’s cover color, and during those times, it is a less extensively written document compared to the blue book.
The evolution of the whitepaper from the halls of parliament to business ventures made whitepaper an entrepreneur’s best friend. A whitepaper contains the main reasons for your business’ existence, stating the problems to be solved, how your business will solve those problems, and how your business will evolve and stay relevant in the future.
Several surveys conducted reflect the importance of “white papers along with trial software as the most utilized forms of content for researching IT problems and solutions, and the most effective at that (Savvy B2B Marketing, 2008).” 77% of potential investors read whitepapers, and 84% said that whitepapers are influential in making purchasing decisions on technology.
A research conducted by Eccolo Media in 2013 collected some interesting conclusions. A whitepaper is the most frequently consumed content type wherein 49% of respondents use whitepaper as a basis in evaluating a tech before purchasing.
Whitepaper is the most influential form of content marketing ahead of case studies, success stories, product brochures, datasheets, detailed tech guides, and video or multimedia files.
During presale. Whitepaper counts as the best form of content when investors are not even aware of the problem that is being solved.
Post-sale sentiment shows that whitepaper is the most preferred content as 7 in 10 respondents look forward to continue receiving content from vendors after sale.
The Satoshi Nakamoto White Paper
A nine-page document written by Satoshi Nakamoto released in 2008 entitled, “Bitcoin: A Peer-to-Peer Electronic Cash System,” introduced Bitcoin to the world. After only 11 years, that single whitepaper went on to become a game-changer and massively revolutionized the entire financial landscape with more than 1,600 kinds of cryptocurrencies and the defining blockchain technology worth billions and billions of dollars. It only goes to show that whitepapers can be a very effective tool for marketing. It is there where you can get a glimpse of what a product or a project is all about, the influence it can wield to sway decision-making, and the interaction it can create with potential investors leading to an ICO (Initial Coin Offering).
Whitepapers are publicly available to make understandable the complexities and relevance of an ICO. Any diligent investor would need its help to evaluate the legitimacy and merits of an upcoming project and the necessity of a token for the project’s implementation and growth.
Table of Contents
Writing a credible whitepaper is all about data, and so requires a lot of hard work in terms of research and gathering of all available information, including graphs and statistics to back your claims. You need to read other whitepapers and identify your target audience as the basis of the language you will use. Organizing the structure should include the project’s main aim, viable business model, the problems the project is going to solve, its difference from other competitors, how to handle the funds, the token’s real utility, blockchain requirements, team members and their credentials, theories, and business prototypes. The important sections that your whitepaper should have must include the following:
- Headline and Abstract
- Problem, Solution, and Product Description
- Token Economics
- Token Usage Guidelines
- Team and Advisors
While businesses are back writing their business plans away from a whitepaper, blockchain start-ups still are writing whitepapers describing their dreams and technical visions. And so with fraudsters and scammers who write down their fake promises to raise money that easy minus the accountability, taking advantage of contributors gullibility and lack of understanding. Compared to the diligent and painstaking undertaking to prepare an IPO, ICOs are nowhere yet to that level of maturity to be able to represent true and legit undertakings. Get it right the first time. The future and fortune of your company relies on the quality of your whitepaper whose effect can draw you millions of dollars. It would be wise to learn from successful cryptos whose well-thought out, and well-crafted whitepapers were enough to define an era.
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The Importance Of White Paper In Cryptocurrency was originally published in Cryptocurrency Hub on Medium, where people are continuing the conversation by highlighting and responding to this story.