The Official CryptoCanucks Shop Is Now Live! Shop Now

Whitepaper Versus Yellowpaper: What is the Difference?

Aug 4, 2018 InsightsNewsResearch 0

More recently associated with digital currencies and initial coin offerings (ICOs), the “whitepaper” has been around for nearly a century. Now, almost no digital coin or blockchain project appears without one, and investors are urged to study them thoroughly.

Whitepapers are a more familiar term in today’s digital landscape as the vision of a project or company. This stands in contrast to a ‘yellowpaper,’ which is the technical documents of the project. While both are often put under the umbrella term ‘white paper,’ it’s crucial to know the difference if you’re reading them to better understand a project or make an investment decision.

The Whitepaper – A Vision

The term “whitepaper” originated in British and Canadian governments. The first whitepaper in Britain is cited as Winston Churchill’s of 1922. In Canada, a whitepaper was historically a policy document made available to the general public.

Often defined as an “authoritative report,” a whitepaper informs the public about a complicated issue or presents a philosophy. On a fundamental level, whitepapers are designed to help readers understand an issue, solve a problem, or make a decision. They became prominent in business marketing in the 1990s and are now a common tool to make a business case or convince an investor to buy-in.

The same principles apply to ICOs and other blockchain projects. Since the advent of the ICO, consumers have been increasingly exposed to the concept of the whitepaper. In this context, the whitepaper is a document that incorporates the vision and goal of the ICO, token, or blockchain, and its supporting technology. It also usually includes a pitch in order to encourage investment and outlines the potential return to investors.

Many whitepapers also include a market strategy, a value proposition, diagrams to indicate user and token flows, team and investor information, and a project roadmap.

Often in a whitepaper, the technology is already planned rather than being an investigation into possible technological developments.

An Example: The Ethereum Whitepaper

To take the Ethereum whitepaper as an example, its contents include a history and background, the Ethereum philosophy, the technology and its applications, and the workings of the Ethereum token and mining. As a whitepaper, it’s designed to engage both potential investors and those interested in the technology, while not being a strictly technical document.

Its title is “A Next-Generation Smart Contract and Decentralized Application Platform,” which,  despite the title being tech-focused, probably would not distract anyone with some interest in blockchain and Ethereum from reading further.

The Yellowpaper – A Technical Document

A broad definition of a yellow paper is that it represents research that has not yet been formally accepted; it describes the research or technology that is being investigated.

Often used for academic publications and scientific analysis, the same is now true for blockchain technology.

For ICOs and blockchain businesses, particularly blockchain developers, the yellowpaper is a far more technical document often containing the promise of technology development which has yet to achieve fruition. It is a theoretical or research-based document with potential avenues for technological development rather than the clear planned technology seen in a whitepaper.

A yellowpaper is more likely present an in-depth scientific or mathematical analysis of, for example, a specific blockchain network.

Read more on Coinsquare : Whitepaper Versus Yellowpaper: What is the Difference?

Sharing is Caring

Disclaimer: is not intended to provide tax, legal or investment advice, and nothing on should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any asset by or any third party. You alone are solely responsible for determining whether any investment, asset or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. You should consult an attorney or tax professional regarding your specific legal or tax situation.

Melanie Clay

Join the Conversation. Leave A Comment Below.