Suppose you have only come across the word white paper in random business magazines and articles online or have seen it mentioned once or twice concerning a certain cryptocurrency token. In that case, you’re in the right place on the internet to learn more about it.
Any cryptocurrency investor worth his tokens cannot claim to be altogether ignorant of the word, even if they are not completely familiar with the blockchain lingo and technical jargon that is a white paper.
Temporarily away from crypto, a whitepaper, in general, business terms, is a special document containing information issued by an organization to highlight or promote the features and attributes of a service, product, or solution intended for public release or consumption.
In this article, you will learn what a white paper is and why it is so important.
Of What Does a White Paper Consist
A whitepaper can take different forms, but their purposes are never far apart. They can be written as marketing documents to persuade or entice potential customers and clients to purchase technology. However, they are more than mere user manuals.
Business-to-business (B2B) marketing is one of the main reasons for writing white papers. It can be a tool of marketing for relations between wholesalers, manufacturers, and retailers.
In business-to-business marketing, three types of white papers exist. The first is called a backgrounder. It provides mostly technical information regarding the product. The second type is the problem type, which is written to introduce better, improved business solutions.
The third type of white paper in business is numbered lists. This one makes concise highlights about a product.
One should be careful not to confuse white papers with other physical publicity media like brochures and magazines. Unlike the latter, white papers are not flashy or given to overblown hype and sales pitches. The tone is more logical, academic, and precise.
White papers are usually about 2,500 words long.
Why Does a Company Need a White Paper
Aside from being informational documents, whitepapers are used to present legislation, government policies and assess public opinion. There are two main reasons why white papers are so important:
Today, it is the norm for businesses and companies to publish lengthy, detailed case studies in the form of white papers.
This way, it is possible for the business to penetrate its market niche by providing potential users with a product with enough technical information to get them interested in the product.
The case studies detail real-life problems, with the proposed solution being the technical aspects of the product.
As white papers are generally comprehensive and go over all the technical details of a product, there is sure to be too much information for any customer to be completely interested in. The chances are that only a fraction of the information will be relevant to the potential customer.
Nevertheless, as you will subsequently come to understand in this article, a white paper is important because it acts as a reference to other businesses and companies in the same market niche, giving them a guide to developing their solutions.
One of the most popular of such whitepapers is the Bitcoin white paper, a trailblazer in the cryptocurrency and blockchain industry.
The Bitcoin White Paper: Purpose and Impact
The pseudonymous Satoshi Nakamoto published Bitcoin’s white paper in 2008. Having spent years developing a solution to decentralized finance and financial scalability, the inventor proceeded to publish the details of his new project, the Bitcoin.
The Bitcoin whitepaper was the first to introduce the blockchain concept to store unalterable, permanent, secure, and highly encrypted, decentralized financial data.
In the white paper, Satoshi gave precise information on how the new technology would function and ways it could be further developed.
With the launch of the first digital currency, Bitcoin, in 2009, Satoshi brought the main ideas of the whitepaper to life. Subsequently, the crypto boom came, up until the creation of the thousands of tokens and altcoins existing in today’s market, such as Ethereum.
Now, it is possible to use and buy Bitcoin Cash, Litecoin, BSV, Basic Attention Token, and other cryptos. All of this could not have been possible without the Bitcoin white paper.
Thus, we can see the sheer impact that the Bitcoin whitepaper has had in the cryptocurrency industry. It can be said that the Bitcoin whitepaper is the alpha, pioneer, and first manual to the blockchain- the foundation on which other blockchains are built.
Today, many blockchains do not function the same way as the original Bitcoin. Protocols have been upgraded, with developers seeking the next best thing. However, one thing is sure: the crypto industry will first and foremost be an offspring of the first published paper to detail the workings of the world’s first peer-to-peer electronic cash systems.