Wednesday, November 13, 2019

What is a Whitepaper? Explained.

The Takeaway:

The key takeaways of this article would be to know what a whitepaper is? Also, the differences between whitepapers in general and cryptocurrencies would get duly mentioned. Why a company should write a whitepaper and has any whitepaper provided a blockchain with vast amounts of investment till now.

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Whitepaper: A prominent tool in the cryptocurrency domain

What is a whitepaper? Is it an article? Or a document about your blockchain project? Why is it used? Do we use different whitepaper for cryptocurrencies? How does someone write a whitepaper? Is it easy to write? What are the do’s and don’ts of a whitepaper? Should we hire someone to write a whitepaper? And lastly which are the prominent whitepapers written in the crypto industry. The answer to these questions is right below to you.

 

1. Whitepaper: in general

A whitepaper is generally called or defined as a guide or an authoritative report which helps in informing the readers concisely about a complex issue. The whitepaper also assists the users in understanding a question, or solving a problem and make a decision regarding it. The uses of whitepaper have elaborated to a bright extent over the years.

In business, a whitepaper gets used as a form of marketing presentation, which is a tool that helps in persuading a more significant number of customers. It is also useful in promoting your products on to a new level depending on your consumer base and reach. Whitepapers also get considered as a form of “Grey Literature.”

In cryptocurrencies, a whitepaper is an exquisite document which is generally issued by new blockchain projects before their Initial Coin Offering. A Whitepaper in cryptocurrencies helps in informing the reader about the latest technology, its methodology, and the products or services which are about to be launched.

A whitepaper is a document which does not facilitate any decision making but helps in making a spontaneous decision based on your customer approach. This decision-making process gets done by taking the favor of the company or the product into consideration. So, in simple words, we can define whitepaper as something which stands in between an article and an advertising material.

This article contains lots of useful information and consequently leads to an accurate solution for purchasing a product or a service. The main reason behind using this whitepaper is that it helps in giving a detailed response to the customers for their complex problems experienced.

A whitepaper is also called as check-lists, instructions, reports, interviews, and infographics as they do lots of work at a single stop.

 

2. Who can write a whitepaper?

Before moving on to who can write a whitepaper, let us first analyze how should be a whitepaper written to engage a higher number of audiences. Below are the four things which are the most while writing a whitepaper. They are:

2.1 Technical Description: The technical description of the product or services must get written over a separate clause in the whitepaper. Why is this essential? It is vital as it helps in understanding the project in a more relaxed manner.

But what should this technical description enclose? This technical description should house all the technical aspects which have been included in your product or services. It should also mention the technology used for creating the product or service.

2.2 Quality and Fresh Writing: This attribute will help you in obtaining higher chances of being successful with your whitepaper. The whitepaper should get written in simple English, but it should be in an appealing manner.

The information provided should be apt and accurate. The readers should easily understand whatever you have conveyed in your whitepaper.

2.3 Accuracy: As said before, the information provided must be apt and accurate. You must make sure the information provided in your whitepaper has a higher credibility value. The statistics and data provided must be from a trustworthy source. You do not want to disappoint your investors by barging them with lies, right?

2.4 Design: Design is a crucial part of your whitepaper. The design housed in your whitepaper should match with the concept of your product. It should also match with the ideologies of your project as well as of the company.

The ideal way to create a peculiar design is to content your parts separately and merge them later into one component. This attribute will help you in creating the perfect layout for your whitepaper.

So, by now everyone would have figured out who can write a whitepaper efficiently, right? Yes, they are the technical writers, editors, translators, and people associated with the project who are well versed in all the above skills.

 

3. What rules does one need to follow when writing a whitepaper?

Following are the rules which are beneficial while writing your whitepaper. They are:

3.1 Place the legal notice at the beginning of your article: The beginning of your whitepaper would be the best place for placing your legal notice. The legal advice should contain all the severe restrictions as well as notifications.

Why is it needed at the beginning only? This feature will avoid other country citizens to know the laws imposed your country and plan their investment correctly. This attribute will also let the clients know that following the same thing followed in the whitepaper would not necessarily lead to profits right away.

3.2 Mention about project description in briefly and fluently: This attribute is very much necessary in every whitepaper. It lets the investor or the client know in detail what your project is and how it works.

Talk about your project in detail and do not miss any point in the project. Any point in the project may be liked by the investor to invest in your project. The documentation of your plan should contain everything from the beginning to the end. Add facts, analysis, and research performed on your project only if they are valid and are delivered efficiently.

Also mention about the state of your project, whether it is completed or not. If not completed at what stage your project is presently lying? How much more time will it take to get completed? It should also mention the strategy employed for developing the plan along with user opinions on the project.

The prime goal of your project has to be specified, and in case it’s completed, whether you have reached your top goal or not has to be mentioned. Most of the investors will like unique projects, have a well-planned strategy, and proper user opinions.

3.3 Talk about your finances: Write a separate topic which mentions the funds you have received and how well you have utilized them. You should explain in this section why your project requires such big tokens; how will they get distributed and will they be limited or not.

You should also provide the timeline of when your sales might get started and how efficiently you are planning to use your finances. Most importantly, do not use terms of expenditure such as ‘industry development,’ ‘miscellaneous expenses,’ ‘networking expenses,’ and so on. It should mention that the finances received has been used only for development.

3.4 The stages of your project: You should mention your detailed roadmap of the project and how good your roadmap is. The roadmap must get written as a technical description, and most of the part must be highlighted on its development.

Ideally, presenting your plan for the next 12-24 months is considered the best which must also consist of at least one planned beta launch. If the tasks which get mentioned in your project plan have been completed, then it is necessary to state it in the whitepaper. This attribute will boost your project to a new high in front of the investors.

3.5 Speak about your team: Remember, it is because of your organization your project to such a stage. Without your team, your plan would have been a dead rubber. It is because of their hard work and efforts your project can get accomplished within the stipulated time. An ICO can never be a success with the help of anonymous developers.

Provide this section of the article with a human touch. Add some photos, biographies, and small user-experiences of the team members, which may delight the investors. Explain why your team is essential and state how they have made your project look easier. Also, indicate if any of your project members have prior experience in blockchain or cryptocurrency.

3.6 Style, Language, and Layout: Format is the most significant plus point in any technical paper, may it be a whitepaper or an article. The paper must maintain a professional style throughout, and it should be descriptive only where it is needed to be.

Avoid making grammatical mistakes and house a layout which can easily fit your content appropriately. Be factual in your whitepaper. Avoid making livid guesses, assumptions, or claims which are not verified. These errors will lead to investors discarding your project even before they have read the terms.

The formatting has to get done in such a way that at any point, it should not look unprofessional. If you think you are not well enough to write the whitepaper, hire any technical writer or content writer. Also, hire a professional translator who might help you in translating the most challenging data in a more relaxed manner.

 

4. Why do companies write whitepapers?

As we have already discussed, the principal purpose of a whitepaper is to help in promoting your product or service. It also helps in persuading customers and assist in analyzing the problems they face. It influences and informs the customers or other parties that your product or technology is superior compared to others and helps in solving a specific problem in businesses. It also helps in addressing a particular challenge or condition concerning your domain.

So, in simple words, we can tell that one needs to write a whitepaper to promote his product or service, which might be a technology or methodology. This promotion should get influenced by the perspective and current decisions of your customers.

These whitepapers are very different from the brochures and other materials used for promotion. These promotional materials are flashy and include blatant sales pitches. So, how is the whitepaper different from these? A whitepaper has the intent to provide you with a piece of factual and persuasive evidence. Through this evidence, you can soothe your investors that your method is superior while battling a challenge or a problem.

 

5. Why would you need to hire someone to write a good whitepaper?

This question is similar to why do you need a journalist to write a newspaper column? As mentioned above, the critical factors in a whitepaper must get duly followed, or else it may lead to the discarding of your whitepaper.

So, it is better to hire someone who has good knowledge about the subject as well understands how the writing should look like. And as the tone of the paper is considered to be professional and factual, it can be assumed that why you need a professional writer. 

Always make sure that a person who has good experience with both blockchain and cryptocurrency domains helps you in writing your whitepaper. A person with good knowledge of these domains will know what to mention while writing the essay. A professional will know how to maintain a professional style and will write the things accordingly to the format presented to him.

The style, language, and format of a whitepaper must also get written in a manner which suits the needs of your project. The font must be professional. And most of the blockchain projects consists of codes and algorithms which are best written and conceived by a program developer.

To make sure your whitepaper delivers accurate information it is needed to, you must hire a professional to help you in writing it. The best output of something can be expected only when the best person works on it, right?

 

6. Some popular whitepapers in the crypto industry

The famous whitepapers in the crypto industry are as follows:

6.1 Ethereum Whitepaper – This paper raised a vast amount of 15 million as investment

6.2 Quoine – This paper raised massive money of 105 million US dollars as an investment

6.3 DigixDAO – This paper raised considerable cash of 5.5 million US dollars as an investment

6.4 Ethereum Useless – This was the shortest whitepaper ever written in the domain of cryptocurrencies. It raised colossal money of 257 lakh US dollars as an investment.

 

The final ball of the innings is:

Whitepaper gets referred to as one of the most critical tools in the domain of cryptocurrencies. We have already seen how handy it can be to a person or a company. The uses of whitepaper are enormous, but like all articles, even whitepaper has a value when it gets written accordingly. 

The matters which should be used and shouldn’t get used are also analyzed in the article. So, if an ICO has to reach newer heights in its tenure, then whitepaper serves as driving gear to increase its speed and accuracy.

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Harry Finnerty
Harry Finnerty
After completing his graduation from Strayer University, Harry started to work in the real estate industry. However, soon he realized that his real interest is in the financial industry and once he came to know about bitcoin and the technology behind it, he dedicated his life to understand and write about it.

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