“I’ve been working on a new electronic cash system that’s fully peer-to-peer, with no trusted third party. ”
These are the words of Satoshi Nakamoto, the creator of Bitcoin. In 2008, he published the 9-page Bitcoin whitepaper, spreading the word. Bitcoin at that time featured innovations such as removing third parties and replacing them with verification. It is the first secure electronic payment system, peer-to-peer electronic, encrypted, transparent and decentralized network as shown in its whitepaper technical description. In the following, we will explain what crypto whitepaper is and what its features are?
Parts Of The Bitcoin Whitepaper
Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments. While the system works well enough for most transactions, it still suffers from the inherent weaknesses of the trust-based model
The traditional banking model achieves a level of privacy by limiting access to information to the parties involved and the trusted third party
What Is A Whitepaper?
A whitepaper explains the purpose and technology behind a project. It is important for an investor to read the document and learn about the goals of the project and the technology behind it. Each coin has a whitepaper in which all the information, goals and other data related to the coin are presented.
Whitepaper helps to distinguish one coin from other coins. The first and oldest whitepaper in the world of cryptocurrencies belongs to Bitcoin, which stated its goals. Also, you should note that whitepaper is not limited to the world of digital currencies. Also, can be used in any field.
What Does Crypto Whitepaper Consist Of?
Whitepaper usually contains project objectives, statistics, charts, and facts. Whitepapers are easy for investors to understand.
Whitepaper usually has the following sections:
- Technical Details
Therefore statistics and information of a project can determine the transparency and roadmap of a project and force investors to invest in it. So if a cryptocurrency wants to start its business professionally, it must include a strong and transparent whitepaper that will attract investors to the project and differentiate this project from other competitors in the market.
Why Reading Whitepaper Is Important
- You can understand the project by reading the Whitepaper.
- You can read Whitepaper to find out if this project is worth the investment or not.
- What is the purpose of this project, and what problem can it solve?
There are many scam coins, but one way to identify such projects is to look at their whitepaper. But we have prepared an article about studying the whitepaper of such projects in (here). Be sure to read this article so that you do not lose your capital in such projects.