Understanding Whitepaper

The term whitepaper is the common term used to refer people to go through when a new project has been developed, and this whitepaper usually contains all information about the project, from the starting point, problems, solutions, teams involved and to the finish point. Every crypto project has a whitepaper and it’s a must to have because it’s their essential part and a walkthrough for those seeking to be part of it.

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When reading a whitepaper, sometimes it’s difficult to understand some words used in explain certain things especially when you are new to reading a whitepaper or a new investor so it’s not a must-to read because it’s just used to explain everything about the project, like a manual but it’s important to understand a project you are going into.

The first whitepaper was introduced in 2008 when Satoshi Nakamoto developed Bitcoin, it was used to explain everything about it and ever since different developers have been using whitepapers to explain their own projects too. There are different parts to the whitepaper when you are going through and these parts contain different types of information about the project depending on the type of project, parts added to explain the projects will differ.

Parts of a Whitepaper

Abstract/Introduction: This part usually contains every basic about the project like what the project is all about, its goals and what led to the development of the project in the first place and what they aim to solve.

Context, problem and Solution: In this section, what is unique about the project is explained, including the aim, targets, and challenges. Then, they also explain how they will be able to solve the problems mentioned and what will happen in the long run and also where they will release the project to be able to solve the problems easily when they occur.

The tech, Token and Tokenomics: in this section, the technical part of the project is discussed especially what powers it and the programming used for it. The benefit of the token in the ecosystem is then explained, the management and its use cases. One should pay attention to this section especially the use cases because it tells more about the project.

How the token can be bought: After explaining the basics of the project or token, a section is usually laid out on how one can buy the token and it usually follows when it will be launched, airdrops and where it will be available.

Teams involved and roadmaps: Obviously the teams involved must be on the whitepaper because it also tells little about the project and also introduces them it’s necessary to know their experiences/history in case of anything.

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