What Is a Cryptocurrency Whitepaper?
A #whitepaper summarizes, in a single document, the important information related to a #blockchain or cryptocurrency project.
It’s a popular way of explaining how a certain project works and what problems it’s aiming to solve.Generally, a whitepaper is a report or guide that informs its readers about a specific topic or issue.
For example, developers can create a whitepaper about their software to educate users on what they are building and why.In the blockchain space, a whitepaper is a #document that helps outline the main features and technical specifications of a specific cryptocurrency or blockchain project.
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Although many whitepapers are focused on a coin or token, they can also be based on different types of #projects, such as a decentralized finance (#DeFi) platform or a play-to-earn game.A whitepaper may provide an overview of essential #data in the form of #statistics and #diagrams. Also, a whitepaper could explain the #governing structure of the project, who’s working on it, and the current and #future development plans (i.e., their #roadmap).
Why Whitepaper's are important ?Whitepapers are important for the crypto #ecosystem .
Even though there are no standards for creating them, whitepapers have become a framework for researching crypto projects. It's a general recommendation to start crypto research by reading the project's whitepaper. Users can use whitepapers to identify potential red flags or promising projects.
In addition, they enable users to monitor if a project is sticking to its original plans and goals.
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