The most literal translation of whitepaper is “white paper”, although translated that way it still doesn't say much about it. Its origin must be sought in the academic field. In this context there are a couple of terms that have become two more Anglicisms:
Paper & Whitepaper
Un paper It is understood as a scientific writing, normally the exposition of a research or a very specific topic.
Un whitepaper It is a document that serves as a guide to explain a certain concept or the solution to a specific problem.
They are usually issued by a person or entity with authority in the matter and the content is usually technical, very specific. Generally explaining clearly and can also include any element that contributes to the understanding of the offered explanation (graphics, diagrams ...)
Within from the world of cryptocurrencies, the whitepaper is of paramount importance (never better said), since it has the mission of defining the project and, in case the project has an ICO, attract potential investors.
This document must explain what the problem is to be solved, how it will be solved, the financing and the amount of token that will be available. In addition to a project implementation roadmap, among other noteworthy details.
Thus, the whitepaper in the crypto world does the function of explaining and laying the foundations of the project. It is a pillar that should not be missing or built in any way.
The main problem with these documents in the cryptocurrency market is that they can hardly be understood by an audience that, with the rise of cryptocurrencies, is neither trained nor capable of understanding. For this reason, many people run the risk of being scammed with projects that do not provide anything disruptive or with the potential to be real.
Keep in mind that normally the people who develop these documents are programmers, and as much as they simplify terms and concepts, the white paper may not be understandable for everyone, therefore there are times when it is convenient to be patient to read this type of document. and understand everything that is exposed.
An example may be Bitcoin whitepaper. It is a simple, nine-page document that lays the foundation for the cryptocurrency. The document is difficult to understand for those who do not have advanced knowledge of programming and mathematics, so it is clearly intended for an eminently technical audience.
Here is the version translated into Spanish of the Bitcoin whitepaper.
There is no minimum or maximum length required, simply, what is necessary to explain the project. It should be taken into account that this document does not have to explain everything, things may be missing and therefore, the author / s of the document or the technical community that is formed around it should be asked.
Basically, the fundamental elements that should be in all whitepaper intended for a cryptocurrency are:
- Problem that the project solves.
- How it solves it.
- Capitalization of the project (financing rounds, minimum capital, maximum capital, stages of development, etc.).
- How the tokens will be distributed and how they will be invested in development.
- Team involved.
- Roadmap or deadlines for development.