What is a whitepaper?

A whitepaper is simply an outline used to inform the public of a cryprocurrency project. This includes the current status and the goals of the project in the future as well as methods used in order to reach those goals.

Whitepapers are released prior to the launch of a cryptocurrency and can typically be found on the company’s website. Reading and understanding whitepapers is important for investors considering to invest, purchase or use a particular cryptocurrency.

Therefore, whitepapers are used as a tool for evaluation by investors as well as the general public to assess the potential success and/or failure of a project. Whitepapers are a fundamental element of initial coin offerings (ICOs) as it is the only “evidence” of the project’s existence during the developmental and introductory phase, before the cryptocurrency has been proven.