What is a White Paper?

In the crypto world, a white paper is a project document released by a company. The document contains technical information regarding the concept of crypto assets to be developed, the project roadmap, and plans for the project to grow and succeed. In addition, the white paper includes an outline of the problem that a project will solve and its solution. This consists of the objectives and the technology used in the project to be implemented.

Publishing a white paper is one of the main steps that need to be taken when creating a crypto project. The existence of a white paper can help investors to understand the project and the advantages it offers.

Previously, documents of this kind were often produced by government agencies, finance, or consultants who needed to present research findings concisely. However, with the massive development of technology and the adoption of content marketing, white papers are becoming more common. Now, white papers are applied in various industries, especially the crypto asset industry.

Most crypto projects publish their white papers directly on the company’s website. Besides the website, white papers are usually uploaded via GitHub, crypto asset forums, and other platforms. The most important thing about this white paper publication is how investors and potential users can easily access it.

Based on the explanation above, it can be said that a white paper is a tool for a crypto project to gain professional legitimacy. A well-structured white paper will be persuasive so that it can attract the attention of investors. On the other hand, a bad white paper can lead to distrust. For more details, here are some white paper functions in the crypto world:

1. Project Fundamental Foundation

White papers are an important tool for project owners to determine the value of the coin or token being launched. The company must also be able to explain the roadmap or plans in detail and ensure that the plan can be achieved as expected.

2. Attracting Investors

The existence of a white paper allows investors to learn in detail about the project’s coins and tokens before starting to invest. The white paper also helps investors make decisions regarding the investment they will make by assessing the potential and capabilities of the company that owns the project.

3. A Project Reference

The white paper becomes a crucial factor for new projects because its contents will be used as an initial reference for the public in building trust in the project’s prospects. Meanwhile, for old projects that are already running, white papers are used to compare the project progress from the initial plan so that the value of the coin or token can be estimated.

4. Company Promotion Media

Although it does not include promotional materials, companies can use white paper as a promotional medium and a tool to attract investors’ trust. This is why crypto companies will strive to produce as detailed a white paper as possible.

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