For everyone who is interested in invest in ICO it is completely necessary not only to read the white paper; but to know how to read it. Since it is one of the bases of the entire blockchain project.
Read on so you don’t get fooled by anyone in this world…
What is an ICO whitepaper?
By the power of example, you know what it is. A document written to better understand the technical project behind an ICO. But the whitepaper is not restricted to ICO or crypto space. A whitepaper is a document used for a long time in business.
According to Wikipedia, “A white paper is an authoritative report or guide that concisely informs readers about a complex topic and presents the issuing body’s philosophy on the matter. It is intended to help readers understand and solve a problem or make a decision.
Which describes its use best: “Helps readers understand.” It is an information document intended to provide you with the best information without the PR and marketing filter of promotional content that we can find on websites, brochures or advertisements.
Why do you need to read the whitepaper?
This is the complete and most reliable source for you to understand:
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Why does this project exist?
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What is the current problem?
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How do you plan to solve it?
Everything is described in detail along with a clear roadmap, team member experience, and additional details on the crowdsale progress.
If you want to make sure you have all the information you need to consider investing in the project, you should start with the whitepaper. It will provide you with an overview of everything you need to research, learn, and understand before making an informed decision.
Then…
How to read the technical document of an ICO?
You have an ICO in mind, you heard or read some details about the project or the team, and you want to dig in and see for yourself if this is a good investment. You head over to their website, review the eye-catching images and headlines on their landing page, and decide to download the official document.
Here’s what you should expect to find in any whitepaper:
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Introduction.
Provide context about what this is about, define the problem, and briefly explain the background. Your goal is to establish credibility from the start.
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Definition of the problem.
It presents the current state of the market with its problems. The problems encountered may be related to the market, business or technology. The project technology may or may not solve all of them, but the focus will be one of the most obvious ones that they are successfully solving.
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Let’s continue…
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Current solutions.
List of current solutions. These may be competitors trying to solve it with similar technology; the companies available right now that will soon be outdated; or even workarounds that customers have used with no real solution available.
In each case, you’ll find reasons why current solutions aren’t good enough.
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Project description.
This is the first section in which you will learn more about the product. It is usually highlighted through “What is [nombre del proyecto]?”. And it will present you with the proposed solution.
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Technical details.
After getting an overview of how they are planning to solve the problem, now you need to see how they are solving it.
Filled with technical terms and analogies, this section may or may not delve into the technologies used, but be prepared to read about the blockchain, issued tokens, and security measures.
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Business benefits.
Known as the money maker! After reading this section, you should have a clear vision of the product coming to market and how it will be used by customers or organizations.
Your investment decision should be based on how big these problems are to talk about and how much money the product is saving its users. With a short bias and dividing the market between competitors, that’s the value of the project.
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Team presentation.
List of team members, what is their current experience and what are their roles in the development of this project.
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Crowdsale details.
Until this section, you should already have a clear vision of the idea and if it is worth investing in. So here is the place where you can do your calculations and check if the token distribution is fair.
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Conclusion.
Acting as a concluding statement, the conclusion is meant to give hope and end on a good note. You can talk about future steps, summarize what you’ve already read, or include a call to action for the next ICO.
About the Author:
I am Andrés Gananci, an entrepreneur and adventurer passionate about life. I founded my first online business when I was only 17 years old. 12 years later, I’m still traveling the world while working from home.
Publisher of gananci.com
You can also find me at Facebook Y gmail
And remember, if you are really interested in creating your own business, you can read our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
