As there are many terms to vast projects like Elastos and Cyber Republic, we’ve decided to build a growing glossary of terms that can help you understand better what various (tech) terms mean and the role they play.

“In the cryptocurrency space, a whitepaper is a document presented by a start-up with the intention of informing and encouraging investors to participate in the start-up’s Initial Coin Offering (ICO).” – Source

A white paper is a document that primarily outlines the problems that a project is looking to solve and potential solutions to that problem. It may also contain more technical discussion such as the design and architecture of a new product / technology as well as the implementation of a project.

Typically, the contents of an ICO whitepaper include the following points:

Introduction

Existing problems and their potential solutions

Tokenomics (token economics) and fund allocation

Teams

Roadmap

It is important to understand that the information presented in a whitepaper is usually a marketing tool and not legally binding. This is different from a prospectus offered to potential investors in the traditional initial stock offering (IPO) as required for filling by the exchanges or securities commission.

There is no guarantee that the solutions proposed by a project’s team in a whitepaper are feasible or will be accomplished according to the roadmap. They are subject to various changes, and the project might even fail without providing any compensation to the investors.

While many whitepapers have failed to deliver on promises made during the ICO craze of 2017, a nine-page-long Bitcoin whitepaper–which simply described how a system for electronic transactions without relying on trust could look–has led to the birth of the blockchain and cryptocurrency space.