Most of the people learned the term White Paper during the ICO boom of 2017-2018. At the same time, in Great Britain the first White Paper was issued about a hundred years ago. Of course, that document had nothing to do with the crypto industry. Let’s have a look at what this term means today.
What White Paper is written for
Today, the “white paper” is the most important criterion for evaluating any
blockchain project. Its purpose is to describe in detail and not too abstrusely about the project, to indicate its relevance and explain the plans of developers for the future. In order to reinforce thoughts, graphs and charts are used, thanks to which even an inexperienced investor can understand the contents. However, many projects additionally release a more detailed document in which they explain their idea for professionals.
The goal of White Paper is to convince people of the relevance and prospects of the project, clearly illustrate the professionalism of the team, and unobtrusively push the audience to invest. Many ask readers to provide their personal data in
exchange for the opportunity to read the documentation, thereby collecting a database of potential and interested customers.
White Paper Content
To summarise the above, white paper should be an answer to the following questions:
- What’s the purpose of creating a project, since
token for the sake of a token only is the first sign of scam;
- What problem will the new platform solve? The idea should be fairly new and fresh - otherwise the platform runs the risk of withering away, and without breaking through the dense rowss of competitors;
- what is the development plan? An interesting idea is a big plus, but buyers want to know when and due to what the project will grow and begin to make a profit;
- who is the head of the project? It’s good if the development team had already been solving the stated problem and has experience in large companies, and the presence of an experienced blockchain expert and authoritative advisers is a very positive indicator. However, sometimes a young team of enthusiasts is quite capable of turning the market around and creating a decent product;
- will there be a profit? Well, 100% of the documents give a positive answer to this question. It is more correct to ask thanks to what there will be a profit?
- how are the funds distributed? To evaluate a project, it would be nice to see a financial model. To put it mildly, the distribution of funds in the form of 90% to the team, 9% to advisers and 1% for development will look a little strange.
White Paper is regularly rewritten and supplemented, and also translated into foreign languages. The stated idea should be as clear as possible not only to investors, but also to translators, who, in case of misunderstanding, can easily distort the meaning of what has been said and push away the target audience.
There are some common mistakes that even experienced developers make from time to time when writing documentation. Let's get to know them better.
No one doubts that the team really loves their brainchild. However to brag about and to exalt oneself and one’s idea in every proposal is too much. White Paper is not a flyer or advertisement, but a serious document on the basis of which people make responsible decisions.
If project managers promise a profit of 300% every month in a couple of weeks - that’s a serious reason to abandon investment and avoid the platform whatsoever. Amendment - unless, of course, this is TON from Durov, but ordinary people are rarely allowed into such projects. And even there the promises are far from so fantastic.
It is also recommended to pay close attention to the sources of information used. The basis for the idea and, therefore, the creation of the project should be serious and in-depth research, and not articles and blogs on the Internet.
It would seem that it is not difficult to hire a good designer. The idea may be perfect, but the charts from the Word and awkward layout can ruin the impression and push people away. Serious platforms (and even the less serious ones) pay great attention to visual design.
The document should have a clear structure. The idea is described, the thought develops and comes to a logical conclusion. Information is structured into thematic blocks, and the order of their appearance should be dictated by logic. In addition, the document should be easy to read and be stylistically intelligible.
To scam or not to scam?
Fraudsters often take advantage of the abundance of affordable projects on the market and do not bother writing original documentation, which will have to spend a round sum of money. Indeed, why would you do that if many beginners do not bother reading it and simply checking the project for veracity?
This tactic often works on more experienced participants - many investors simply can not afford to spend time on a detailed study of all the details. Often, attackers use the ready-made White Paper, and the most arrogant do not even edit it according to their poject. At the same time, the presence of such a document is even worse than its complete absence - scam will be easily recognised by more experienced market participants and spread bad rumours on the web.
Some creators of “blockchain projects” openly declare in the documentation that there will be no profit and the only goal of their brainchild is to earn some money on gullible
crypto enthusiasts. And, most strikingly, people bring money in such projects.
It is worth paying close attention to the photographs and personalities of team members - information that is most often included in white paper. Scams instead of real photos often publish images from photo banks or even photos of celebrities. The identity of each team member (ideally) should be confirmed by a profile in a professional social network. Often, industry-famous advisers themselves are not aware that they "share professional skills" with several dozen scam platforms at the same time.
White Paper is a simplified, clearly written and pleasantly designed presentation of a blockchain project. The document argues the need for its appearance, justifies the development vector and shows possible sources of profit. Self-respecting investors pay close attention precisely to the “white paper”, therefore a good White Paper is the key to the success of the project.