Whitepapers are the semi academic presentations of the ICO company's technology. It gives an insight into the company's project and in turn a reason for investors to buy the token or coin.
A whitepaper is a written presentation of an ICO, the blockchain technology is represents, the team creating it, and the plan by which these goals will be achieved. Whitepapers are typically distributed online as PDF documents. A whitepaper can be just a few pages (Bitcoin), or it may be dozens of pages (Ethereum).
In most cases, the whitepaper is somewhat academic in tone and content. It may include excerpts of code, to explain the engineering basis of a blockchain technology. It may also include computer technology concepts, game theory, philosophy, and other complex ideas that explain the nuances of an ICO and the company behind it.
Most whitepapers are written for a general audience, despite these complexities. Readers unacquainted with blockchain will likely find these texts incomprehensible, but those with a general knowledge of blockchain should be able to understand at least some of the most important points.
An ICO must be, above all, convincing. Readers should feel that they truly understand why an ICO is valuable, why they should invest. They should have their questions answered before they even have a chance to ask them. They should understand how the ICO will distribute tokens, and how these tokens will function in the real world.
A whitepaper should also speak to the qualifications of the leaders and developers of the ICO. Their competence should be demonstrated, and users should learn about their past efforts.
Whenever possible an ICO whitepaper should be released prior to an ICO. There are exceptions, but these cases require a certain amount of “faith” on the part of the investor, who may not understand the project in fine detail. Whitepapers may be revised as projects develop. Whitepapers may be written by a single person or by multiple authors. At no point in a blockchain project’s development should it be without a cogent whitepaper.
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