Open- source has been the term in vogue nowadays. It refers to a type of computer software where the source code is made publicly accessible for developing useful applications.
With the tremendous expansion of blockchain technology, Open- source has also impacted the cryptocurrency industry. Since not every government in the world is open towards the proliferation of digital currencies, the presence of an open-source environment injects trust and improves safety into blockchain technology.
How Open Source software works
- It has a wide scope as it caters to a large number of communities rather than focussing on the business of a single company.
- The software is published and shared transparently across different platforms collaboratively for a common cause.
- It promotes decentralization since the power of technology is distributed among several hands.
- Since anyone can be granted access to the software, modified versions can be created and redistributed.
- Licencing hurdles with the owner of the original software would be eliminated.
- Small enterprises can quickly scale up with open- source software
- A company would benefit from reduced maintenance costs as it is shared among multiple parties.
- There is an absence of a central authority in the network that ensures equality among all participants.
The impact of an Open- Source software on cryptocurrency creation and token development
- Computer networks will be developed that connect participants for formulating a deal regarding blockchain technology.
- The software that brings participants together is known as the client. Client software is built in the form of open source.
- A well-known example of open-source software in the Crypto industry is Bitcoin Core Reference Client hosted on Github.
- It can be accessed for free by anyone interested in blockchain technology.
- The original creator of the software can view the changes made to the code.
- Since Github is a public repository, it witnesses a lot of clone software created in the form of forks.
- The original software can be modified for various purposes without making any changes to the repository.
- It can also be used for building different applications for industries compatible with Bitcoin.
- New cryptocurrency networks can also be created to add more digital assets and establish a well-rounded portfolio.
Reasons why Open source Cryptocurrency Exchange can prove to be a gamechanger
- Cryptocurrency and Blockchain technologies benefit immensely from decentralization as it improves their functionality than being regulated by a single enterprise.
- Users will be awarded better incentives and higher data protection for joining a decentralized platform.
- Since there is an open consensus mechanism involved, users would have more trust in the system.
- The deployment time of the software is very less compared to a centralized provider.
- Cumbersome registration formalities with authorities can be avoided by buying an open- source software
- It eliminates the need for intermediaries from different business processes. This will improve efficiency for users in the trading experience.
- A robust admin panel will monitor operations and encourage new users to join the platform.
- Internal audits are carried out beforehand. High security is implemented through two-factor authentication in an open-source cryptocurrency exchange.
- Compliance with KYC (Know your Customer) and AML (Anti-Money Laundering) guidelines are ensured.
- Robust API’s in-built in the platform will give high liquidity to investors and high market rates for every coin would be earned by traders.
- All the transaction records will be stored securely. This would improve the flow of capital and facilitate faster transfers with global investors.
Why Open Source software can benefit the Crypto industry in the long run
- Promote collective innovation – Since open- source software is created by people without worrying about the boundaries or borders, it tends to uplift innovation. Constant technical tweaks can be made to the software by interested participants who share a common vision. This can enhance the experience of the end-user. Freedom to create multiple versions gives more flexibility to developers as the code is public.
- Enhances security – Since multiple developers operate on the same page, bugs can be detected easily and resolved instantaneously. Later, a new version of the software can be developed without containing any flaws. This ensures better security and robustness in the platform.
- Available for free – The biggest bonus of Open Source software is it is available at no extra cost. Interested developers just have to download the correct code and wait for it to become a full node. This will enable them to have control over the functions of the cryptocurrency. There will not be any agents such as wallet providers and exchange services. Developers also have a better chance of fully owning the cryptocurrency networks.
- The better synergy between different applications – Open- source software enables smoother interaction between different applications operating in a network. This would be impossible in a centralized system where a single entity holds all the control. Ethereum would be an ideal example of an open-source platform in the cryptocurrency industry. With common standards and a unified programming language, it empowers anyone to create a decentralized application. This would instead boost the utility and value of the entire network.
Why Open- Source Cryptocurrency Exchange is needed in today’s world more than ever
Open-source software helps in solving complex problems easily and creates a resilient and versatile codebase that can withstand different kinds of emergencies. It can outwit the political tensions, economic stagnation and financial issues plaguing different countries through the decentralized revolution. Open-source software is not just a challenge to the traditional functioning of different enterprises but acts as a complementary by ensuring a fair and transparent system of delivering value to the end-user. This is witnessed in the cryptocurrency industry today where thousands of digital assets and competent applications are being developed simultaneously across different parts of the globe.