Yellow Paper

Overview

In the cryptocurrency world, the yellow paper can be defined as a document similar to that of the white paper that provides details about the project. It is a formal paper that presents a report on a topic or we can say while launching a new cryptocurrency coin, the complete details are written on a yellow paper.

It can be termed as the second technical white paper that entails the scientific details of the project or the thing that is intended to create. Cryptocurrency companies make use of yellow paper to propose their project.

What is Yellow Paper?

The yellow paper is a digitally prepared copy of the specifications of the protocol which is difficult to decipher for those who are not proficient in mathematics or algebra. It is a type of thesis or research paper on specific topic that doesn't have any legal or authorized value.

A variety of symbols is used to write the yellow paper the meaning of which is difficult to understand for general readers. Once you know about the meanings of the symbols, it will become easy to understand the concepts given in the yellow paper.

History of Yellow Paper

A British programmer named Dr. Gavin Wood is the person behind the invention of Ethereum yellow paper. It is an official definition of the project titled Ethereum protocol. Ethereum is a free computing platform and operating system based on the blockchain. It features the smart contract program which refers to a computer protocol designed to digitally verify the performance of a contract.

The original Ethereum's white paper was published in 2013 by Vitalik Buterin, a programmer of Russian-Canadian origin, while Dr. Gavin Wood wrote a yellow paper containing technical details somewhere in the year 2014.

Smart Contract Analysis

The smart contracts analyze the performance of transactions without involving a third party. This program was initiated by a computer scientist Nick Szabo in the year 1996. The purpose of the smart contract is to provide superior safety and minimize the transaction cost associated with every contract.

The smart contract can be related to any form of computer program, not necessarily related to the original concept of a contract. This concept is widely in use in the world of cryptocurrency. Bitcoin has also used this concept by way of using a Turing-incomplete Script language which is customized for payment channels, multi-signature accounts, and several others.

Ethereum is a decentralized computer program, a complex concept that works through smart contracts. Over the years, a volume of research work has been published on Ethereum to make people aware of the concept.

The World of Cryptocurrency And The Evolution of Ethereum

In a nutshell, to explain the application and benefits of a decentralized currency, for example, the Bitcoin, the founders of Ethereum saw it from a legal aspect with the intention to bring trust into the system. The system of digital currency transactions operates in a dangerous environment and the most effective way to bring authenticity to the system is through contract. As a natural evolution of this process, the contracts are made smarter and gradually accepted into a digital platform.