What Is  the purpose of White Paper ?

Whitepapers explain the purpose and technology behind a project.

They usually provide statistics, diagrams and facts to convince interested investors to purchase the cryptocurrency.

Producing a whitepaper is key a step required for a crypto startup to be considered legitimate and professional, as it helps investors understand how a business is different from rivals in the space.

Whitepapers differ from litepapers, which tend to be shorter, less technical and easier to understand.

One of the most famous cryptocurrency whitepapers is undoubtedly Bitcoin: A Peer-to-Peer Electronic Cash System, which was published by Satoshi Nakamoto in 2008.

The Bitcoin whitepaper proposed the following:

A peer-to-peer (P2P) system for payments across an online network

Removing third parties and replacing them with verification (decentralization)

Transactions would be irreversible

A P2P distributed timestamp server. This would generate mathematical proof of an order of different transactions.