A document that changed the world. You’ve probably heard about a crypto whitepaper. If not, let’s explore this topic together to see what it’s all about.

A crypto whitepaper isn’t just a document. Many think about it this way, and they’re all wrong. It’s something greater—a vision, a manifesto, and a rebellion (at least originally) against the system. It’s also what separates an idea from a finished product.

The origins

A silent protest started in 2008 when the US economy was struggling during the financial crisis. The banks got greedy and started taking on more risk than usual. Then everything collapsed.

In the middle of this chaos, something new was born. This original creation was named Bitcoin, and with it a special document titled "Bitcoin: A Peer-to-Peer Electronic Cash System” was released. A new era of financial freedom began.

The Bitcoin whitepaper

Satoshi—the entity behind Bitcoin—explained the thoughts behind Bitcoin. Especially during those uncertain times, it was an unprecedented new form of money that not only could operate outside of the banking system but had the potential to actually entirely replace it. Everything was explained in the Bitcoin whitepaper, from the vision to technical details to get all kinds of people onboard.

A call to action for innovators

The Bitcoin whitepaper didn’t just act as a document. It was a call to action for everyone to get involved. Soon others started developing their own blockchain solutions by identifying problems Bitcoin had. This way many blockchains like Ethereum or Solana were born.

In order for it to be considered trustworthy, the whitepaper has to tick many boxes.

What should a crypto whitepaper have?

When you think of a crypto whitepaper, what comes to mind? Is it just words? Or maybe promises to get as much funding as possible? Originally, it was the foundation for a future project. Before any line of code was written, such a document was released to gather enthusiasts and discuss details. Nowadays it doesn’t hold much weight with so many cryptocurrencies being created each day.

The whitepaper has a different value for everyone. For an investor, it can act as a good evaluation of whether the project succeeds. For a developer, it is a plan to move forward and create new solutions. For a community member, it’s something that unites people. As you can see, one document, so many meanings.

Building trust and credibility

Trust and good intentions are hard to come by these days. When starting a project and making an effort to build a community that will not fall apart after just one argument, being transparent and honest is the most important quality. If a team of developers, investors, and community members doesn’t trust the leader, there should either be a leadership change or, perhaps, the project isn’t worth a dime.

Diving deep into the technical vision

A good whitepaper consists of something more than pure statements. It outlines every technical aspect of the project, making it a great source of knowledge for tech-savvy people. Consensus, architecture, and innovative technologies should be discussed to dismiss empty claims and put the project on the fast track.

Building a community of believers

No project is complete without a supportive community. Technology doesn’t play a role here. If nobody believes in and supports it, no matter what you say, it’s a dead project. Community is the heart of the project, where various discourses take place daily to upgrade and align the ideas and fit in the cryptocurrency space. They are not just people who are monetarily bound to a project; they are dedicated to its mission and are excited to spread the word, aka “shill”.

Defining the roadmap

Without a map, you can easily get lost. With a project, it’s quite similar. The importance of a roadmap with a concrete timeline is invaluable. How else would you know if a team is on schedule or lagging behind? A roadmap is a plan for a team that needs to be executed. For investors and community members, it’s a tool to supervise the founders and give personal input on what should be done differently or improved.

Problem statement

Why would you build a project if there was no problem to solve? Good question, right? Projects are usually created around a problem, which they aim to solve. What’s the point of something that has no purpose? You should ask these questions yourself to understand if the opportunity you’re pursuing is really worth it.

Solution overview

After defining the problem, it’s time to come up with a solution, which will be implemented in the project and serve as its core. The solution should be simple for everyone to understand and provide an improved user experience.

Tokenomics

Tokenomics is a term used to describe the distribution of tokens. In this section the entire supply is divided among the team, ecosystem, and community. There can also be special contributions for marketing or grants. Vesting, which is a time-based token distribution, can apply. It reduces the supply shock and stabilizes the price in the near term.

Use cases

As important as the community is the utility of a project. A chain that no one uses is also referred to as a ghost chain. These projects die a slow, painful death. You wouldn’t want to experience your assets becoming a shell of their former self. Make sure to note who uses the project and what for.

The entire Bitcoin whitepaper is available at: https://bitcoin.org/bitcoin.pdf

The risks

Becoming an intelligent and thorough investor takes time. In the meantime, you should learn as much general crypto knowledge as possible as well as analyze every project you intend to invest in carefully to avoid losses. There are many pump-and-dump schemes waiting to take your money. Be cautious and look out for many things.

Lack of technical details should spark your attention. If somebody doesn’t deliver on the promises, it’s unacceptable to give out free money to an amateur.

Another thing to look out for is unrealistic claims. Many projects overpromise and underdeliver—it should be the other way around. If something seems revolutionary and looks too good to be true, it probably is.

While anonymity was common in crypto at the beginning, having a doxxed team is a standard now. If nobody can be held accountable, it’s a red flag for a project. How can you even know if the team is honest and trustworthy if you don’t know who they are?

Is the future bright?

The whitepaper is evolving with technology. Its structure and information are constantly changing. Its format has changed, too. Nowadays you may see video explainers, presentations, guides, and others, which have the exact same role—to inform.

Conclusion

A whitepaper is more than just a digital file. Its words are meant to provide information and unite behind a project. Satoshi’s creation was a vision ready to reshape the world. While many whitepapers offer viable and interesting solutions these days, they have lost their value and meaning.

When you find a project you can connect and associate yourself with, take your time to read this document. It can serve as a source of valuable insights and a map for the upcoming years. Are you ready to dive in and research?