Understanding whitepapers

When a layman hears the word ‘whitepaper’, all that comes to play in his head is a plain sheet of paper.

I once fell for this, but not anymore.

Admission of ignorance is often the first step in our education. Specific terms look familiar but in actual terms are not what we think they are.

Do you want to know what a whitepaper is?

Let’s sail this voyage.

What is a whitepaper?

A white paper is an official document for a crypto project. It offers technical information about its concept and roadmap.

You might want to purchase land but the only thing you know about is the land location. It’s not enough to squander your funds on imbecile projects. How about the land size, topography, land appreciation, and purpose of purchase? Land Surveys give adequate information about the land, and so also does the white paper provide necessary information about a crypto project.

A crypto whitepaper contains various forms of data like statistics, diagrams, and formulas. The goal of this data is to convince prospective investors to invest in that cryptocurrency.

Reading a whitepaper is to help you know. Many times people get confused as to reading white papers to understand because they miss out on enlightenment but I’ll help you overcome this. Provided below is a step-by-step process for handling whitepapers with all efficiency;

• Know basic crypto terms

In my previous articles, I explained the common terms used in crypto and they would come in handy. A child doesn’t write an essay without grasping the letters of the alphabet. These basic terms help you navigate through the whitepaper with ease.

• Understand the purpose of the project

Projects are created to solve problems. Usually, the purpose is found at the start of the whitepaper. It gives you an understanding of the problem the project is trying to solve and how its solution is different from the solutions that might already exist. Know the WHY.

• Explore the technical aspect of the project

Typically, projects will try to simplify how the network functions using graphs and summaries. Visualization has proven to be the key to understanding and the most functional aspect of a whitepaper.

You should try to understand the big picture of the project and not worry about the minute technical details of the whitepaper.

• Know the Project Timeline

A project timeline tells the working period of a project. This covers the launch to the sales of tokens/cryptocurrencies. Timelines keep track of the project’s welfare and it’s safe to know.

These aforementioned steps aid comprehension of whitepapers and you gain mastery as you put it to good use.

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