What are Whitepapers

A legitimate source of information for prospective investors interested in understanding a project.

Your Guide to Blockchain Technology and DeFi 

Users tend to research more about protocols across different ecosystems as they evolve in the Decentralized Finance (DeFi) space. In search of knowledge, they may bump into the term “whitepaper.” 

Whitepapers are very important for blockchain protocols and crypto assets. It uncovers many details about a project for interested users. In simple terms, it is a document created by the developer(s) explaining the goal and technology of the project—the whitepaper details how the project and underlying asset are formulated to attract prospective investors. 

Whitepapers contain different types of data to ensure that investors understand how the project works and how it differs from other projects in the industry. 

Users are advised to read a project’s whitepaper to understand its mode of operation. Most importantly, understanding the document should not require technical expertise, as it is written like a handbook. 

Whitepapers help projects communicate their vision to the public

Features of a Whitepaper 

Below is a list of what users should find in a typical whitepaper: 

An introduction, explaining why the project was created. 

The protocol’s use cases like Non-fungible Tokens (NFT), PlayToEarn (P2E), GameFi, Decentralized Exchange (DEX), and more. 

Consensus Mechanism (Proof of Work, Proof of Stake, etc.) and how it works. 

Tokenomics. 

Technical Explanation. 

Timeline or Roadmap. 

Whitepapers are typically a legitimate source of information about any project in the crypto space.

Source : bsc.news

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