Whitepapers are essential documents for online projects presented to potential investors. These papers aim to show the public what the developers offer and why. Most of the time, it’s a proposed solution to an ongoing problem in a specific industry or a prospect for lucrative gains in the long run. In this we’ll be decoding crypto whitepapers and sharing the most important details for find about this new currency technology.
The contents of a whitepaper depend on what the project is supposed to accomplish. When you’re investing in crypto, these are the key details that you should look for in its whitepaper:
The problem and the project’s proposed solution
Every crypto project is often inspired by Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). They each set the trend for crypto, smart contracts, and stablecoins and are held as the prime examples of each product. However, they’re not perfect, and developers seek solutions to provide what they lack.
Some of the most common problems crypto projects often aim to solve are scalability and stability. Almost all crypto solutions are instant but transaction speed is still a common target because a faster network is less likely to increase gas fees. These are important factors to their success in being traded in exchanges or accepted in Bitcoin casino sites.
The proposed solution is the most intriguing part because it’s usually proposing innovative tech that no industry has tried. If a similar solution has failed in the past, the whitepaper wouldn’t look as attractive to an avid investor. On the other hand, a completely new solution will also raise some eyebrows and experts will talk about it in podcasts or forums.
How the crypto and its network works
The average crypto whitepaper should explain how its network operates including its consensus mechanism and decentralised ledger technology (DLT) structure. It allows more tech-savvy investors to look into the potential of cryptocurrency and its applications. Likewise, it can also intrigue investors who are less familiar with the technology. Keep reading to start decoding crypto whitepapers and sharing the most important details to find out about this new currency technology.
The structure is the basis of the crypto project and it will determine its potential for years to come. It will have potential as long as it can solve issues other well-established crypto suffers from like scalability, speed, and data processing. The structure also dictates what it can eventually evolve into if given the chance to advance through its roadmap.
How the crypto tokens get its value: Decoding whitepapers
Investors always come for the crypto project’s profitability so it’s crucial to outline the tokenomics clearly. The following questions will need to be answered:
- How much is the maximum supply?
- What are ways to earn/mint the cryptocurrency?
- Is there a burn mechanism for this asset and how does it work?
The value of the token is what entices investors to fund it and industries to support it. The top Bitcoin casinos only accept digital assets with intrinsic value backed by market capitalization. Investors reserve the right to avoid the project if the whitepaper cannot confidently answer these questions or proposes an uncertain alternative.
Intended applications for the token and its platform
No matter what form the crypto may take in the future, what’s important is the developers’ intent behind its creation. This will tell the investors what the end product is going to be and hint at what the developers have in mind for future updates. For example, a gaming-focused token should have plans to interact with other elements of the entertainment industry besides finance.
A good example of this is Shiba Inu (SHIB). It was present to be the more serious alternative to Dogecoin (DOGE) but the goal was to grow in the play-to-earn (P2E) industry. DOGE is still bigger on account of being adopted in the best Bitcoin casinos, but SHIB has a more concrete intent behind its development. Thus, SHIB’s developers have a clearer goal than DOGE for the future.
Roadmap of goals to accomplish and updates to implement decoding crypto whitepapers
The roadmap refers to a laid-out plan that the developers aim to follow throughout the next year or more. They should be with all details, highlighting exactly what feature or tool they are working on and when it is up to launch. However, being vague just quarterly updates and promised approximate dates for changes should also suffice if the developers prefer flexibility.
Being more detailed offers more confidence to potential investors. At the very least, the roadmap should have a up to endgame or the ultimate form the crypto project will reach to be present as ‘complete’. More updates can still come beyond that but the investors need to know what the developers envisioned from the start.
Find the next big crypto by reading the whitepaper
The whitepaper can tell you a lot about the developers and the potential of a crypto, including how lucrative it can be. However, it should still be under comparison to what you already know about the market and the digital asset industry. If you don’t have insight, look into what experts say about the crypto project. Form your opinions based on all the information available, including the ones in the whitepaper and knowledge of similar projects that came before it.
The post Decoding Crypto Whitepapers: The Most Important Details To Find appeared first on Visualmodo.
0 Commentaires