What is whitepaper? Why are coins needed?

When it comes to market electronic money , your specific investment projects can not be electronic money irrespective of the term "Whitepaper" - a term that is always present in the ICO project . So what is a whitepaper? Why should coin projects have a Whitepaper? Let's find out details with TinoHost in the following article.

About Whitepaper
What is whitepaper?
According to the English-Vietnamese dictionary, a whitepaper is defined as a white paper (called "Bach Thu" in the ancient dictionary ) is an informational document usually released by a company or non-profit organization to promote outstanding feature of the solution, product or service that the company intends to provide. Whitepapers are also used as a method of presenting government policies and laws and assessing public attitudes.

What is the whitepaper in the ICO project?
For the field of electronic money, a brochure Whitepaper determined on a project-tech ICO (aka "Initial Offering Coin" - roughly translated as release first Token ). This file typically contains a detailed description of the system structure and its interactions with users, as well as current market data and growth projections and requirements for the Token usage. In addition, the Whitepaper provides a list of project team members, investors, and advisors.

If an ICO project does not have a clear whitepaper, it will make your investors question “ should I join this project? “, with projects like that, transparency seems to be absent.

What does a full Whitepaper include?
An ICO project needs to have a specific, detailed and specialized whitepaper. Owning a professional whitepaper, the new issuer can convince investors.

Therefore, to write a complete Whitepaper for an ICO project is not simple at all. This requires the writer to have highly specialized knowledge covering the entire project such as:

Marketing
Token Economy
Blockchain System
Expertise in the field that the project is aimed at

The most important headings in the Whitepaper
To attract investors' attention, a complete whitepaper includes the following essential contents:

Overview of the virtual currency market that the company is looking to enter.
What problem is the company proposing to solve? and why do those problems need to be solved?
Full description of the system architecture.
How will users interact with the system?
About the project team and their expertise
Information on market capitalization and growth rate
Table of plans or existing partnerships.
Terms and conditions of the use of Tokens.
The philosophies and ethos underpinning the company
7 basic steps to write a quality whitepaper
Remember that these are just the basic steps for you to easily visualize an overall Whitepaper. So you have to do your own research to develop a complete table. To have a standard whitepaper, you should refer to the 7 steps of writing a whitepaper.

Identify the problem (here means virtual currency)
The key to almost any successful startup is identifying the exact problem they face and finding a solution to it. In the field of cryptocurrencies, it is no different. Before starting anything else in the Whitepaper, you should outline the problem in a way that is easy to understand and simple for investors to visualize.

If your investors can't see the need in the solution you put in place in the first place, everything else in your document makes no sense.

Offer solutions (here means the technology behind the project)
The second most important part of the whitepaper about ICO projects is the solution you propose – the product (the product here is virtual currency) you are selling. Now, since this is the Blockchain technology we are talking about, your solution will be technical and confusing for most people.

You must understand that investors will be divided into two groups:

Those who want technical details sheet
Those who only care about the profit earned from the project
Therefore, in this section you should divide it into two sections. In the first section, you only describe in detail technology and separate techniques. In the remaining section, please bring the benefits from the solution.

Benefits, profits
In this section you should show investors the return they get when investing in your ICO project as well as the special features of the electronic convenience exchange or coins.

For example, the system you founded allows for 10,000 transactions per second.

Whitepaper Research Team
The research team is an integral part of the project. Should have an introduction about the development team including photos and short biographies is also an advantage to attract investors.

Place to place ads for ICO project
Previously, whitepapers of successful ICO projects would be posted on crypto-related forums. However, today's ICO projects will post the whitepaper on their own website. There are also virtual currency forums…

Market capitalization and growth
While there are strong arguments for why market capitalization is an imprecise metric to measure the value of cryptocurrencies, investors are still concerned about the issue. More importantly, they will want to see how their initial investment can grow.

This section is where you should map out your specific marketing plan, what will be invested in this area and what you hope to achieve with this project.

A successful ICO whitepaper should outline a financial roadmap to represent predicted growth based on real-life scenarios and the mining of virtual currencies.

Route
No whitepaper of an ICO project can successfully raise capital without an issuer's development roadmap and technology. Investors need to see that your project has the ability to expand and develop long-term in the future. But most importantly, the ICO project can be commercialized and meet the market demand. You have to show investors how their money will grow in the near future.

In addition, you should clearly explain what the capital of the ICO project will be used for. Investors need to know that the money they are putting into the project is being used in what category, how they are contributing to the development of the project, not your own personal wallet.

With the "vast" amount of knowledge in the topic of Whitepaper, TinoHost cannot sum it all up with today's article. Hopefully through this article you can better understand the importance of whitepaper in the field of cryptocurrency.

WARNING: This is an information sharing article, not a call to invest, you must be responsible for your own decisions. Investing in financial products always involves a lot of risks, so you need to consider carefully before making a final decision. Wish you wise and sober to make the right investment decisions!

FAQs about Whitepaper
What is the purpose of writing a Whitepaper?
The whitepaper is responsible for convincing investors to put money into the company's project. For virtual currency, a full Whitepaper should have the following basics:

The process of forming ideas and strategies of the project
What are the internal problems that the project needs to solve?
Disseminate details of technology used in the project
Provide detailed information on issues related to the issued coin such as quantity, distribution method.
Key members of the project.
Publisher partners
Are ICO Whitepapers Available?
On the internet today there are countless whitepapers for ICO projects, but if you copy those copies without investing in research, TinoHost is sure that your Whitepaper will be missed "from the parking round".

Here are 3 successful whitepapers for your reference.

Ethereum – raise capital of 15.5 million USD
Quoine – raise capital of 105 million USD
DigixDAO – raise capital of 5.5 million USD
Is the whitepaper important or not?
As the above article mentioned, the Whitepaper is the key for you to open the door of the investor's heart so that they accept to invest in your ICO project. Therefore, you must have understood the importance of a whitepaper.

What should be noted about style, layout, language in a whitepaper?
When writing a whitepaper, the writer should use an academic style, the language should be descriptive with the specialty. Important issues should be presented briefly, avoiding verbosity.

Problems should not be assumed or predicted. No errors in spelling and grammar. Use professional font formatting.