The foundation of every major cryptocurrency and open blockchain project lies in open source software. Policymakers exploring cryptocurrencies may mistakenly assume that software systems must be developed by a few for-profit companies. While proprietary software like Microsoft Windows follows this model, open source projects operate differently—a distinction that should inform public policy.
Understanding Open Source Software
Open source software is:
- Collaboratively produced by a global community.
- Shared freely without restrictive licensing.
- Developed transparently with public access to code.
- Designed as a community good, not owned by a single entity.
Unlike proprietary software, open source projects lack a central "chokepoint." No single company controls Bitcoin's network or its underlying software. This decentralized approach offers significant benefits but can be challenging to grasp for those unfamiliar with software development.
The Power of Linux: A Case Study
Linux exemplifies open source success:
- Ubiquitous Presence: Powers ~90% of internet servers (Facebook, Google, Wikipedia), Android phones, Chromebooks, smart TVs, and more.
Collaborative Development:
- Involves ~18,000 contributors from 1,300+ companies (2017 estimate).
- 2,355 developers made first-time contributions in 2015 alone.
Eric Raymond, author of The Cathedral and the Bazaar, noted:
"Who would have thought a world-class OS could emerge from part-time hacking by thousands of developers connected only by the Internet?"
Key Advantages of Open Source
- Developer-Driven Innovation
Projects begin by solving real user needs ("scratching a personal itch"), ensuring passionate involvement. - Code Reusability
Open development reduces redundancy—great programmers rewrite rather than reinvent. - Sustainable Maintenance
Developers hand off projects to successors, preventing stagnation. - User-as-Co-Creator
Users report bugs and suggest fixes, blurring lines between consumers and producers. - Linus’s Law
With enough contributors, "every bug is shallow"—problems get fixed rapidly.
👉 Explore how open-source principles transform industries
Legal Frameworks Supporting Open Source
Open source licenses enable:
- Permissive Use: MIT License allows free modification without payment.
- Copyleft Protection: LGPL-3 requires derivative works to remain open-source.
Cryptocurrencies and Open Source
Major blockchain projects embrace this model:
| Project | Contributors | License | Notable Forks |
|---|---|---|---|
| Bitcoin Core | 450+ | MIT | Litecoin, Zcash |
| Ethereum | Hundreds | LGPL-3 | 8+ client variants |
| Zcash | Independent | MIT | Community-driven |
Key Stats:
- Bitcoin Core: 15,000+ code commits, 10,000+ forks.
- Ethereum: 121+ repositories, including smart contract languages and clients.
👉 Discover decentralized networks built on open-source trust
Why Decentralization Matters
Cryptocurrencies avoid centralized regulation by:
- Replacing corporate middlemen with open networks.
- Aligning incentives through transparent code.
- Enabling trust among strangers via verifiable systems.
As Eric Raymond observed, open source turns software into a public utility—resilient, adaptable, and free. From Linux to Bitcoin, this model continues to redefine technology's role in society.
FAQ Section
Q: Can open-source software be commercialized?
A: Yes. Companies like Red Hat offer support/services for open-source products while keeping code free.
Q: How do open-source projects sustain funding?
A: Through donations, grants, corporate sponsorships, or dual-licensing models.
Q: Is all blockchain technology open-source?
A: Not all. Proprietary blockchains exist but lack decentralization's core benefits.
Q: What prevents someone from stealing open-source code?
A: Licenses legally require attribution. Copyleft licenses mandate derivative works remain open.
Q: Why do developers contribute to open-source?
A: For skill-building, reputation, solving personal needs, and community collaboration.