Being a fundamental analyst, or someone who wishes to invest heavily in cryptocurrencies; thorough research is very important but the information you find on the general internet is either very misleading or one-sided; this is because of the fact that humans have a biased narrative. So for deep research, what is the best source for your reading? The official documents issued by the company; white and yellow papers.
But it is important for users to have a fundamental knowledge of the working of blockchain and the latest trends including the biggest crypto failures and how did they mess up. This is important because the past is the biggest indicator. These skills will help you read a white paper.
But what about yellow paper? In general, you will need deep tech knowledge in a lot of genres including cryptography, Solidity, Data Structures and Algorithms, economics, and much more. Being in a field as versatile as cryptocurrencies, a project may comprise a lot of different applications and technologies.
But don't worry you can still read the beige paper if you do not understand the yellow paper, but more on that later.
Do you need beige paper? Or perhaps yellow paper? Let’s take a look at what each of these terms means, as well as when you should use one over the other.
What is a Crypto White Paper?
A white paper is an authoritative report or article that informs readers about the details and implications of a particular topic. It’s essentially an educational tool used by businesses, nonprofits, and other organizations to share information or views on a particular subject. It’s essentially a document that explains why/how your company will implement a new strategy or product, as well as its potential impact.
A white paper is shorter than a thesis or academic article and focuses on a specific topic. It’s commonly used in business, marketing, and advertising. Since these documents are fairly unique in terms of their scope and purpose, it can be challenging to know which one you need when you’re trying to write one yourself.
A crypto white paper is a document that summarizes your project, including its goals and objectives, as well as the methodology/technology you’ll use to achieve those goals. It’s used by businesses or organizations to raise funds for their token or coin projects through an ICO. It’s essentially a marketing tool that describes your business model, the need for your product, and the way you intend to bring it to market. A crypto white paper is typically between 10 and 25 pages in length and includes a description of the problem your business is trying to solve, how your product will work, and a description of your team members and advisors. Crypto white papers are often written in a formal format and may be presented as a PDF file.
What is a Yellow Paper?
A yellow paper is a document that describes the technical features and functionality of a product or service. It’s typically used to describe a new technology or system, such as a blockchain. It’s often published by private organizations, such as a corporation or university, and may be available in both soft and hard copies. A yellow paper is usually long and technical, as it details both the positive and negative implications of new technology. Yellow papers are unlike white papers in that they don’t directly promote or endorse a particular product or service. They simply describe the pros and cons of new technology and how it may impact a particular industry or sector....Read More
Put simply, a white paper provides a detailed description of a system architecture used in your project; the way it interacts with users.
Still, if you really believe you can do without a white paper, you run the risk of facing serious issues with performing standard ICO procedures.
As it was mentioned above, only a few potential investors will be ready to sink every cent in a business or coin offering lacking proper information on used technology and previous project members experience.
Both following your own way and answering tons of question provide you with a chance to gain useful experience and improve ability to understand project details better.
According to Andrew J. Chapin, an e-commerce and blockchain expert, the founder of Benja.co, and Ship Ninja projects, there’s a list of points common for all white papers.
All you need is a compromise: combine two options to get a catchy longread (academic research paper) full of comprehensively evaluated data (startup business plan).
