Why Every Crypto Startup Needs A Whitepaper and Technical Documentation
Any crypto or blockchain startup looking to build a trusted reputation must publish documentation contributing to this image. The document should contain essential details that give readers as much explanation as possible about the project. In most cases, a whitepaper is considered the go-to document because it extensively explains the project’s vision and value proposition. However, some projects may use a technical paper that functions as a necessary guide and includes technical implementation details.
How a Whitepaper Attracts Interested Participants
A whitepaper is largely considered the foundation for any crypto project as it helps to present a clear and compelling vision that attracts investors, early adopters, and several other stakeholders. The document explains the problem the project hopes to solve, details the solution, and then shows the market potential that demonstrates feasibility. While whitepapers can broadly cover technical details, they are intended to make sense to non-technical potential members of the project’s community.
Whitepapers also convey the project’s market fit, articulating functions and solutions. In addition, the document may provide expanded functions for the cryptocurrency. For instance, while not originally intended as its primary purpose, Cardano’s ADA can be used extensively on online gambling platforms. Instead of fiat, online gamblers can enjoy Cardano dice, experiencing the several benefits of gambling with digital assets, including instant transactions, unique games, and novel variations of popular titles.
Why Technical Documentation is Crucial
A whitepaper with a carefully presented value proposition will likely attract significant interest. However, technical documentation is more likely to win developers over. This document will allow developers to understand the product’s architecture more deeply, enabling API integration and general project code exploration.
The details included in technical documentation are more than an explanation of the project’s purpose. Technical papers include information such as architecture diagrams, samples of code, and instructions for configuration, all of which help developers to integrate the project into others, or simply contribute to the project’s development. The documentation also provides a reference for developers, especially when regularly updated, so that they can add new features, make improvements, or ensure much-needed continuity.
The Case for a Combination of Both
Using a whitepaper and technical documentation offers crypto projects a strategic advantage that may be impossible with only one. The need for extensive documentation is crucial because, according to a survey conducted by consumer insights provider Toluna, 60% of respondents said they did not understand cryptocurrencies. To fix this problem crypto projects should consider combining both for the following reasons:
- Extensive Documentation from Vision to Application: While the whitepaper helps to introduce the project’s vision and strategy, technical documentation provides technical details for the implementation and application of the product. This approach caters to investors and helps them build confidence in the project, while simultaneously attracting developers and conveying technical demands to them.
- Enabling Transparency and Trust: Whitepapers contain the project’s expectations as part of a roadmap. They also have details about purpose and goals, which keeps the project in check and allows the community to hold the team responsible if it begins to falter. On the other hand, technical documentation promotes transparency as it shows how the technology works. This specifically encourages trust and helps to build a community of engaged stakeholders and developers willing to contribute to the project’s success.
- Catering Simultaneously to Multiple Audiences: Whitepapers and technical documentation appeal to technical and non-technical stakeholders. While technical documentation is more complex, a whitepaper is targeted at all potential community members. Combining both types of documentation allows the project to communicate adequately across the board.
Problems With Using One Type
Startups that choose to use only a whitepaper or technical paper may suffer some disadvantages. For instance, using only a white paper may initially help to attract public interest. However, the lack of technical details can cause delays and friction, and also discourage developer participation.
On the other hand, the absence of a whitepaper means that investors and the project’s broader community may not properly understand its value. While the technology would make sense to developers, the likelihood of adoption, fundraises, and general awareness would be reduced.
Tips for Writing Whitepapers and Technical Documentation
In addition to writing solid documentation, projects must ensure that both documents complement each other effectively. For instance, the whitepaper should focus on goals, benefits, and value propositions, while avoiding technical jargon. It is better to write a white paper that is easy to understand and easily digestible by investors and members of the general public.
For technical documentation, projects can focus on technical details, such as specific technology and code, without dwelling much on aspects covered by the whitepaper. While the technical document should also be easy to understand, it should adequately sell the project to a technical audience.
Furthermore, both documents can reference each other. For instance, the whitepaper can reference the technical documentation instead of including technical details itself. This makes it easy for readers to choose to read more technical information.
Conclusion
Crypto startups looking to make a lasting impact should seriously consider using a whitepaper and a technical paper. While the whitepaper establishes credibility and helps to build interest by communicating goals, the technical paper provides details that can interest developers and help them bring the project to life. The technical paper can also be continuously updated to keep up with technological developments and ensure that the project can compete favorably. By catering to different audiences, projects ensure that their products are future-proof and can achieve long-term success.