What is a White Paper and Why it Matters for Cryptocurrencies

Hey folks, are you ready for another informal lesson on cryptocurrencies? Our topic for today is “white paper.” Bitcoin’s whitepaper is the first cryptocurrency white paper to come into existence. The author, who goes by the name Satoshi Nakamoto, wrote a very detailed and informative 8-page piece explaining the concept of Bitcoin. Thereafter, numerous cryptocurrency projects drafted their own white papers to follow after the footsteps of Mr. Nakamoto.

Now that you know the origin of cryptocurrency white papers, we can go into what they are. What purpose do they serve? Why do we need white papers? The answer is a white paper tells people about a project. That’s an oversimplification, but we will go into detail about the things we find in a white paper.

The first objective of a white paper is to inform people about the project. It tells us what we can expect from this project. Tied to this is the aspect of a problem and solution. What does the team identify as the problem, and what is its proposed solution? Bitcoin’s white paper points out the flaws of the trust-based system and offers an idea that could make things better.

Part of the proposed solution is a description of the product and an explanation on how the product can be beneficial. Projects usually include graphs, tables, drawings, and equations that explain how their product works. Sometimes, it gets very technical and becomes hard to understand. Trust me, I know from experience.

Next we have a roadmap. As we have seen on CyClean’s website, a roadmap is a timeline of goals that the team plans to meet. Roadmaps can give readers an idea of what the team plans to do by a certain month or quarter. This is useful because it sets a deadline for the team and pushes them to work towards achieving certain milestones.

Also included in a white paper is information on the token. This is usually basic information, such as token supply and token distribution (how many tokens the team holds, how many are sold to the public, etc.). Additionally, some projects include team members’ profiles.

Overall, a white paper should give you a better understanding about the project. It is written by the people who best know the project, so they should be giving you the best information. White papers are not everything, but they definitely do matter. 

And that is the basic idea of a white paper. We know the CyClean team has been putting a lot of time and effort into its white paper, so please be patient for a little longer. We assure you, we won’t let you down. Thank you for reading!







** For more information about CyClean, please visit our website at cyclean.io.