Open-source code is publicly available code that can be used freely. It invites users to review the code for potential errors or suggest new changes and features. Open-source code has greatly aided the development of cryptocurrencies such as Bitcoin, Ethereum and countless others.
The concept of open source has been around for a while, taking off in the 1990s with people sharing code online. You may not know it, but there is an impressive amount of reliance on open-source code and products across the internet. For instance, Linux – an open-source operating system – powers at least 37% of web pages visited around the world.
In the Bitcoin and cryptocurrency world, open-source software is critical — it offers a decentralized codebase that is available to view, modify, and develop for anyone. The Decentralized control of this source codebase mirrors the autonomy inherent in cryptocurrencies and mimics their decentralized design. Together, open-source software and cryptocurrencies provide a public system from which anyone can benefit.
Open source software is distinct from proprietary code as it is open to public inspection and modification. It’s typically not under the exclusive ownership of one entity and can easily be modified or duplicated. Windows and Apple’s mobile iOS are well-known examples of proprietary code, while Linux operating systems are known for their open-source development model.
Why is it essential for cryptocurrency to rely on open-source code?
In contrast to traditional financial systems, most major cryptocurrencies such as Ethereum and Litecoin are decentralized, meaning they lack a central authority that can block certain transactions or control the network. Consequently, individuals who store their own cryptocurrency are bestowed with full autonomy over it; in place of having to place trust in third-party organizations like banks to manage funds.
In order for trust in Bitcoin not to be compromised by a single middleman, a decentralized approach is essential. This means there cannot be one individual whose instructions are written into the code and who decides which entities have permission to access it. Instead, the authority must be shared among multiple users.
Why Open-source is important for Bitcoin?
- No approval process required: All that is necessary to access Bitcoin is open-source code that can be downloaded and used without any authorization from a corporate or governmental entity.
- Authentication: Third-party developers are able to analyze the software and ensure that it functions as stated by the team behind its development. Thus, providing an extra layer of trustworthiness to its users.
- Security: The advantages of open-source software can extend to improved protection against malicious attacks and vulnerabilities.
- Encourages Project Evolution: In order to help foster growth in the project, people can put forth any ideas they may have for new features. Bitcoin has something called BIPS which is a great way to propose these additions.
- Allows efficient spin-offs: Disagreements don’t have to be the end – with forking, developers are able to create a copy of project code in the event that their change is rejected by maintainers. This method has been utilized many times, as evidenced by its use in numerous cryptocurrencies modeled off Bitcoin such as Litecoin.
