Oct 17, 2018 at 04:04
Oct 17, 2018 at 05:31 UTC
How to Write a Blockchain White Paper
Blockchain technology is changing the world; more and more companies around the world are launching their blockchain projects to enhance efficiency and security. Last year was a big year for blockchain technology, companies around the globe generated over $2 billion in the Initial Coin Offering (ICO) projects. ICO has also become an effective way to raise capital.
Because of the surging popularity of ICOs, there is a dramatic increase in competition. Now investors have become more educated in how to choose out a good ICO from a bad one. One of the key components which allow the investors to determine whether or not to invest in the ICO is whitepaper. For the success of an ICO project, it is essential to have a great white paper which can attract investors.
In this article, we are going to throw light on what is a white paper and how you can create a perfect blockchain white paper.
What is a White Paper
White paper is a complex representation of a project concept. In other words, it is a detailed guide of a project, products, or services. The main emphasis of white paper is on technical and industry-specific details. White paper is not for the lay audience but for those who are more familiar with the particular industry. A white paper describes a problem in the marketplace and offers a solution through the application of decentralised technologies. The goal of a white paper is to convey the philosophy of your company, explaining what the project is about, and inspiring the trust of the potential investors.
White paper gives prospective clients or investors an opportunity to access the potential of the project and help to decide to invest in the project.
Why you need a White Paper
According to the statics, white paper is the most frequently used decision making document. Especially in the projects related to blockchain technology, potential customers react to the useful information not advertising. The white paper contains the information about specific solutions which cannot be found anywhere else. White paper is the unique presentation of your company and the technical specifications of your project. Some benefits of white paper
- It helps to create interest of the potential investors in your project
- Helps to find financially profitable investments
- Inspire the customers to purchase output to resolve the problems of the marketplace
- Enhance the reliability of the project
- The main component of the White Paper
- In a white paper it is essential to include the following points, but should not be limited to them.
- Table of content
- Description of market and problem
- Description of the product or project and how it is going to solve the described problem
- Tokens: Why, how many, how, when, and so on
- How you are going to use raised funds
- The team
- The roadmap
How to write a blockchain white paper
When you write a white paper make sure to offer your potential investors an option which can address a larger problem. White papers are written with specific goals, they are meant to inform your clients, and to promote a specific methodology. A standard white paper contains well-structured content in around 25 pages.
Steps to writing your blockchain white paper
Step 1: Title
Make a headline which catches the attention of your potential clients. Before writing the document, collect the responses to the following issues:
- Who is your target audience?
- What is the necessities and concern of your potential clients?
- What problem you are going to resolve?
- Reveal the primary goal of your project and use it in the title
- Analyse the names of white paper which are used by famous white paper and make yours accordingly
- Keep the title concise and comprehensible
The title must have exactly what it describes in the document
Step 2: Abstract
The abstract is the outline of your white paper which helps to capture the attention of your readers. Keep your statements simple, brief, and accurate. The ideal length of the abstract is considered between 150 and 250 words. Make sure abstract clarifies:
- What does the white paper contain?
- Why should the potential clients or investors read the white paper?
- What are the propositions and inferences of this white paper?
Step 3: Introduction
The introduction must include the problem and the solution. In introduction engage your audience and try to encourage them to read on. To compose a meaningful introduction, you should
- Raise the issue and describe how centralisation is causing inefficiencies
- Use data and facts to prove your points
- Provide additional information about the content
The introduction should be relevant to the entire document. In the introduction do not forget to specify the purpose of the white paper and the motivation to achieve it.
Step 4: Market Consideration
Presenting the market analysis is an essential aspect of a successful ICO project. In this section you can answer the following points:
- Currently, what is the actual condition of the business or market?
- What are the complication and requirements of your target customers?
- What is the advantage of finding the solutions to these problems or requirements?
Step 5: Solution
Present the compound solution. Include an understandable description of how your project is going to work. Write a detailed, comprehensive market analysis to demonstrate how your product is positioned in the existing market. In this section, you can also use visuals data and layout to make the information more visible. Readers can easily understand the solution which includes data, tables, formula, and visuals. The primary goal of the solution is to motivate the readers for decentralisation in the market. Indicate the advantages of using blockchain technology.
Step 6: Roadmap
A roadmap is an integral part of the white paper which explains how you are going to provide and extend the value of your tokens. Roadmap tells your potential investors that where you are now and where you want to see yourself in the future.
Step 7: Token System
Give detailed information about the token operating system and address the issues such as
- The significance of the cryptocurrencies
- How the token is going to make a profit over time
- Token creation period
- Number of tokens which you are going to issue
- Expenses associated with the release of the token
- Methods of dissemination and time
Step 8: Product Description
Provide detailed information about your product and strategies of its development. Describe where blockchain will be implemented.
Step 9: Legal aspects
List all aspects of the regulatory jurisdiction. Explain all issues which are related to your legal security plan. You potential investors should know about the risks. It will protect your business against possible speculations.
Step 10: Introduce the team
Your potential investors want to know who is participating in the project and what their background is. So include the profiles of all your team members, it will increase investor trust.
Step 11: Purpose of the white paper
In last, sum up everything. Write the conclusion which is emphasising solutions for all problems. Explain the significance of the solutions. Also, mention the goal of selling your output.
Step 12: Post the white paper
A few years back, most of the people used to post their blockchain related white paper on various Bitcoin-related forums but now when the crypto craze is on its peak most of the projects posts the white paper on their website. You can also utilize other option such as GitHub or other forums to make your white paper visible.
To make your ICO successful, it is essential to create an excellent white paper which offers the detailed explanation of the commercial and financial details of the new coin offering. In the white paper explain everything which your potential investors want to know about the project to decide to invest in it.