#ProjectCrypto 📜 The Whitepaper: What is it and what is it for?
Imagine a whitepaper as the detailed business plan of a crypto project. 🏢 It is a document that the founding team publishes to explain their vision, the technology they will use, and how they plan to solve a problem. 💡 It is the foundation of everything.
This is where the team demonstrates that their idea is solid and viable. It is not a marketing document; it is a technical and strategic document. 👩💻👨💻
Key points to analyze a whitepaper 🔍
When you read one, look for these sections to understand the project in depth:
1. Summary and Problem to Solve 🌍
What to read? Look for the initial section that describes the problem that exists in the current market.
What to understand? You should comprehend why this project is necessary. For example, "payment transactions are very slow and costly" 🐌 or "artists have no control over their digital works" 🖼️.
2. The Proposed Solution 🚀
What to read? Here, the team explains how their project is going to solve the problem.
What to understand? You should see the technology they will use (the blockchain, special algorithms, etc.) and how it differs from the competition. It is the "how we are going to achieve it" of the project. 🛠️
3. Tokenomics (Token Economy) 💰
What to read? This is one of the most important sections. It details the project’s token (the native token).
What to understand?
Total supply: How many tokens will exist in total? 🔢
Distribution: How are they distributed? A portion for the team, another for the public sale, another for rewards? 🤝
Utility: What is the token for? 🤔 Is it for paying fees, voting on decisions (governance), or earning rewards (staking)? 🗳️
4. Roadmap and Team 🗺️
What to read? Review the future work plan (roadmap) and who the creators of the project are.
What to understand?
Roadmap: Are the timelines and objectives realistic? 🎯 What have they already achieved?