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.
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.
