What is White Paper? Knowledge to know about the white paper

What is White Paper? This document helps readers understand a project in the technology field. The white paper provides helpful information for describing a product attribute or solution. Let's now learn the concept and information related to White Paper with BHO Network!

1. What is White Paper?

What does white paper mean? According to the English - Vietnamese dictionary, these two words mean white book. This is a document issued by organizations or companies to promote products and services to customers.

The white will describe the outstanding features of the product to the user. The whitepaper is also a method to represent government policies and laws.

2. What is the White Paper in the ICO project?

In the NFT, White Paper is seen as the document for an ICO project. This is an acronym for Initial Coin Offering. A detailed table of the structure as well as the interaction of the system with users will be shown here. In addition, white paper anticipates the needs or problems of using the Token.

In addition, the list of members of the advisory board, investors and project team will be shown in the Whitepaper.

3. The information contained in the White Paper

White Paper in the ICO project plays a vital role. Investors will be more easily attracted if the issuer owns a White Paper. Therefore, writing a White Paper is not easy. Specifically, you must have expertise in the areas of the project, such as:

• Marketing
• Token Economy
• Blockchain system
• Expert knowledge of the field the project is targeting.

In addition, important items to attract investors when reading the White Paper will include:

• An overview of the Metaverse that the company wants to enter.
• What are the problems the business proposes to solve and why?
• A complete description of the structure of the system.
• When joining the system, how will users interact?
• Brief introduction of the project team and expertise.
• Important information on market capitalization and economic growth.
• Plan table and list of existing partners.
• When using Token, what terms and conditions should users pay attention to?
• What are the goals and characteristics of the company as a foundation?

Read more: What is IEO? How to invest IEO to achieve the highest efficiency

4. Examples of some White Paper

Bitcoin and Ethereum are the two most successful NFT platforms today. Therefore, you can refer to the White Paper of these two Blockchains. The Bitcoin White Paper was written by Satoshi Nakamoto and published in 2008. It is not only a successful White Paper but also considered an academic paper.

In contrast, Whitepaper is a continuously updated and edited document by the project. As a result, the platform has gone from being a white paper to technical references. In addition, you can refer to some White Papers of potential projects such as Quoine and DigixDAO.

5. Functions of the White Paper

A successful White Paper must ensure fundraising and contain the most accurate information. Please join BHO Network to learn more about the white paper.

5.1 Contains the most standard information

White Paper is considered the root of a project. Each cryptocurrency Web site will have a different perspective on Blockchains. However, the most accurate place to interpret the role and definition would be the White Paper. Users will easily understand and invest in a project if they read the official information in the white paper.

5.2 Fundraising

White Paper will be the outline of the project for readers to learn. Therefore, investors will understand the overview of the product and decide whether to invest or not. When ICO was still popular, a project only needed a White Paper to raise capital.

However, the White Paper no longer occupies an important position when raising capital. The reason is that most of the projects do not achieve the goals stated in the white paper. Therefore, investors nowadays tend to look at products and results to make decisions.

6. Importance of White Paper

How Important is the White Paper? It can be said white paper means a lot to the project and investors. This is a tool to attract users and show the product's potential.

6.1 For the project

White Paper is described as a tool to attract investors. New projects or do not have a lot of ideas will use the white paper. The development team directly builds the White Paper to engage the user community and raise funds. If the information in the white article is not specific and vague, the investor will not be interested in that project.

In addition, the White Paper serves as an informational vehicle for the crypto-enthusiast community. The white paper will be posted everywhere before a project is released. From there, investors will know the time of opening sale or listing of Tokens and how to participate in Airdrop events.

6.2 For investors

The advantage of White Paper is to help investors save time searching. All information about the project will be presented in the white paper. You will understand the nature and the problems the company is solving is really possible or not. From there, investors will be able to make the right decisions about capital contribution.

In addition, you can compare the white papers of each project with each other. This will help you understand how it all works and make the right investment decisions.

7. Distinguishing between White Paper and Lite Paper

At present, White Paper is no longer so important to projects. The main reason is that white paper is too technical. Therefore, the appearance of Lite Paper has gradually replaced White Paper. This is a means to convey information but in a more straightforward way.

Lite Paper's way of arranging and arranging information will make it easier for readers to visualize. From there, investors will clearly understand the idea of ​​the project. Lite Paper will the calculations with formulas or project contexts. Information of Token or Project Team is still retained.

Every project can have both White Paper and Lite Paper. Both versions are interchangeable and optional.

8. Importance of White Paper in Cryptocurrency Investment

The first advantage of the White Paper is to summarize all the information and data of the project. As a result, investors will not spend much time searching. The white paper also provides the core points and shows the project's potential. You will understand what problem the company is solving.

In addition, not every project will be unique and have potential. A few are simply fork from big projects like:

• AMM is mostly fork from Uniswap.
• Lending will come from MakerDAO or Compound and Aave.

Therefore, you can refer to the project's key metrics section to see the structure and effectiveness of the platform.

9. Basic Steps to Write A Quality White Paper

What are the steps to a White Paper? Projects must follow 7 steps to release a white paper with enough information to attract users.

9.1 Defining the problem

Determining the problem is always a priority for businesses to face and find a solution for their products. In NFT, you need to outline in detail and easy to understand the content required in the White Paper. If the business helps investors see the need to solve the given problem, the white paper has succeeded.

9.2 Propose solutions

The solution is the next important part of the White Paper in the ICO project. Investors will be divided into two main groups:

• Those who require technical details.
• Those who care a lot about the profits that the project makes.

Therefore, in the first section, the white paper needs to describe the technical table in detail. Next, come up with solutions and shared interests.

9.3 Benefits and profits

In this section, enterprises need to clarify the benefits that investors can receive when contributing capital. At the same time, the features of the cryptocurrency exchange or Token should also be clearly listed.

9.4 About the research team

Investors will be very interested in the research team of the project. A product with a couple of potential experts is more likely to succeed. Therefore, businesses must provide full information, photos and biographies of the development team in the White Paper.

9.5 Determine where to place ads for the ICO project

Successful white papers will often be posted in cryptocurrency forums. However, current ICO projects tend to post white papers on the Website.

9.6 Market Cap and Growth

Market capitalization and how to measure the value of cryptocurrencies is one of the things that investors care about. Above all, how the initial amount that businesses contribute capital will grow is also essential. Therefore, the White Paper should have a specific Marketing table for each field.

A successful whitepaper should outline a financial roadmap for investors to visualize clearly. This roadmap should represent the predicted growth in cryptocurrency mining.

9.7 Roadmap

The development roadmap is an essential and indispensable part White Paper of the ICO project'sRoadmap will help investors see the potential and scalability of the platform. At the same time, you must demonstrate that the project will be commercialised and meet the market's needs.

In addition, the White Paper needs to clarify the investor's capital will be used for what purposes and items. From there, your project will gain the trust of many businesses.

Read more: What is Decentralized Storage? Details about Decentralized

10. How to read and analyze the basic white paper of a project

Knowing how to read the White Paper will save you time and help you better understand the effectiveness of the project. BHO Network will give you some questions to make reading the white paper easier.

• What this project does: When you find the answer to this question, you will understand the nature and problem the project is solving. White Paper usually has quite a bit of academic jargon. Therefore, you need to understand the core value and meaning of the project.
• Is the idea of ​​the project feasible: Each project offers many different solutions. However, not all directions are realistic. You need to determine the platform's viability to make the right decision.
• The project will solve the problem posed by the project: A potential project will have a White Paper that clearly shows how to solve the problem. In particular, the method must be specific and well planned.
• Is the development team capable of implementing the idea: If the list of staff is people with expertise and experience, the project will have more potential. You need to consider the core personnel to measure the feasibility of the investment.
• What will your investment money be used for: Every investor will be interested in the cash flow contributed. You need to know what the project will spend the money on and how it will raise funds. You also need to be careful with projects that do not have cash flow information but only for promotional activities.

11. Some examples of successful White Papers

White Papers that have brought success to ICO projects are:

• Ethereum: The project raised USD 15.5 million
• Quote: The platform raised USD 105 million
• DigixDAO: The project grew, raising $ 5.5 million

The white paper of the Ethereum Blockchain is considered the shortest in the world. The project team only posted the slogan "Don't buy any Tokens here" on the Website. However, a surprising effect was that the platform raised $257,213 through the ICO project.

Related posts:

• What is Proof of Authority (PoA)? How does it work?
• What is Etherscan? All the details about Etherscan.io

Through the above article, we've solved the question What is White Paper? Every ICO project should issue a detailed and specific white paper. From there, investors will find your product to contribute capital. If you need more information about the White Paper, do not hesitate to contact BHO Network.