Oct 31, 2022 at 05:18Bitcoin whitepaper turns 14 years old on October 31. Many consider this the birthday of crypto, and it’s hard to argue with that: the contribution that just nine pages have brought to the world of finance is hard to overestimate. So, let’s take a look at what this document is and why it is important.
What is a whitepaper?
A Whitepaper is a document that contains valuable information about a project for the target audience. Simply put, it is a 10-to-30-page user manual that aims to promote a particular product, service, or methodology or influence the decisions of current and potential clients and investors.
The main difference from a brochure is that a white paper focuses on facts and evidence that a particular proposal is a great method for solving a problem or challenge. Whereas a brochure is more of a flashy marketing piece.
Speaking of cryptocurrencies, the definition does not change. That is, the whitepaper of any project means a document that sets out the essence, goals, and principles of the cryptocurrency project, being the most important source of information about the project.
The brand new newsletter with insights, market analysis and daily opportunities.
Let’s grow together!
In 2008, Satoshi Nakamoto introduced his project, revealing to the world a peer-to-peer electronic cash system called Bitcoin.
What is the Bitcoin whitepaper about?
The fateful document appeared online on October 31, 2008, at Bitcoin.org, where it is still stored today. The document contains only nine pages, on which you can:
- read brief information about the project itself;
- get information about the transactions;
- get a description of the timestamp servers;
- understand what the Proof-of-Work mechanism is and other things about Bitcoin.
The author described his project as digital p2p money, which does not require third parties to make secure payments, and most importantly, gives complete anonymity and freedom. The network itself was only launched in early 2009. It is known that Satoshi sent a whitepaper in a message called Bitcoin P2p e-cash paper. We attach it below.
One email changed the course of human history forever pic.twitter.com/5ApBnwWRoE
— Documenting Bitcoin 📄 (@DocumentingBTC) October 31, 2022
The author is supposed to have spent years of work on the whitepaper. It is worth noting that things like digital signatures, public key cryptography, hash functions, Merkle trees, timestamps, block rewards, mining complexity adjustments, and transaction fees were studied before Bitcoin was created. So, in the whitepaper, Satoshi described how he came up with the requirements to create the first digital currency.
What does a whitepaper consist of?
If you want to enter the ICO, you can’t do without a whitepaper. You must write a detailed guide about your coin, and it must not be too long. And it’s better to release two versions at once — full and abridged.
What you need to specify in the document:
- what your project is about;
- how you plan to develop it;
- whether you are thinking about investing in it;
- a full description of the cryptocurrency;
- an explanation of why your token is better than others;
- the estimated value of the coin in the current market (this requires research);
- the estimated amount of market capitalization.
This information will allow you to quickly introduce your cryptocurrency to the market because it is unlikely that anyone will want to invest in an unknown product. Your goal is to attract funding and prove that your coin is the most competitive.
All cryptocurrencies have a whitepaper, so if you want to enter an ICO, you will also have to make such a document. What does it consist of, we wrote above, but for example, you can read the whitepaper of other cryptocurrencies from the top 10 by market capitalization. All data was taken from the Coinmarketcap website.
Satoshi Nakamoto’s work is the progenitor of all current whitepapers. After reading it, you will probably understand how other cryptocurrencies work, as well as how the market works. It’s only nine pages and 3,192 words. It took the author years to put it together, you’ll read it much faster, and you’ll have a deeper understanding of the world of digital assets. And that’s exactly what we’re all here for, isn’t it? Thank you, Satoshi Nakamoto. Happy birthday, Bitcoin!
By the way, unfortunately, bitcoin did not rise in price on its birthday. In the last 24 hours, the value of the coin, according to Coinmarketcap, has fallen 1.58% and is trading at $20.35K.
9
