What is the purpose of a whitepaper in the context of blockchain projects?

Question: What is the purpose of a whitepaper in the context of blockchain projects?

A whitepaper is a formal document written to explain the purpose and technologies behind a project. Blockchain whitepapers can be considered a manifesto of the project, and typically contain detailed technical explanations and an outline for the future to convince prospective investors of its value .

In the context of blockchain technology, a whitepaper is a detailed and comprehensive document that outlines a particular project, concept, or idea. It provides in-depth information about the problem being addressed, the proposed solution, the technological architecture, and the implementation roadmap .

In the context of blockchain projects, a whitepaper serves as the primary means of communicating the intricacies of the proposed system, providing potential stakeholders with a detailed roadmap and understanding of the project's objectives .

A whitepaper is necessary for new projects, especially those seeking to launch an initial coin offering (ICO) as they can be used to explain new technologies, solutions, or other existing information that may not be readily available. For example, the Bitcoin (BTC) whitepaper provides both an outline of Satoshi Nakamoto’s vision for the project, along with a detailed history and explainer for proof of work and incentive mechanisms .

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