Why open source crypto exchange software is a good business decision
The beauty of cryptocurrency trading is its decentralized nature, where it is free from any central authority. Think of it as democracy for digital currency — it creates a level playing field, where each participant can keep, send, and receive Bitcoin, Ethereum, and other cryptocurrencies.
At the heart of decentralization is open-source software, which has provided more lenient functionalities, allowing users to transmit digital currencies without a middle-man. Decentralization is founded on transparency, security, and immutability — all of which are the main features of open-source technologies.
Exploring open-source crypto exchange software may be the answer to your crypto exchange needs.
What is Open Source?
Open-source software refers to publicly available projects. Everyone is free to access, modify, and use the software to their individual needs, whether to play with existing code or to establish a crypto-exchange platform. The development of open-source software is primarily a collaborative effort among programmers who wish to manipulate and modify how specific programs behave. Open-source software is always published transparently on websites like GitHub, FossHub, and OSDN, among others.
The best example of open-source software is Linux. If you’re using an Android phone, its operating system runs on Linux. Similarly, each time you open popular websites such as Facebook, Pinterest, and Wikipedia, it’s highly likely that the websites’ services (e.g., social networking, articles, photographs) are running on the Linux operating system.
Although Linux has become a household name, you might be surprised to discover that Linux isn’t a product of a single programmer or corporation. Instead, Linux is open-source software that was developed by thousands of developers. It is estimated that over 18,000 individuals have contributed to the Linux code.
Pros and Cons of Open Source Crypto Exchange Software
Pros
- Open-source software is 100% free to use.
- It’s flexible. Open-source allows developers to modify the code to suit their unique requirements better.
- Open-source encourages innovation; programmers can build upon pre-existing code.
- Provides access to a pool of expert developers who are continually improving the software. At least one programmer among hundreds will likely notice a bug or vulnerability and fix it immediately.
- It lasts a lifetime. Programmers will always be attempting to make the software better. The key advantage of open-source software is that it’s always evolving with the industry’s different demands.
- Unlike big corporations, where it can take months to fix bugs, open-source developers keep the software secure. There are bound to be a handful of community members who can deal with these issues in no time.
Cons
- Commercial software usually comes with a top-tier support service. Whenever there are urgent issues, there will always be a team of experts who are obligated to assist you. With open-source software, there is no dedicated help desk.
- Open-source software is geared toward the skilled programmer. End users who aren’t tech-savvy won’t understand the code, let alone modify it.
- Developers may lose interest in the program and abandon the software over time. This, however, applies to both open-source and proprietary software.
- Open-source may lead to unexpected costs, such as staff training, hardware setup, and data migration.
Why Open Source is Ideal for Your Crypto Exchange Business
Made by Users for Users
The developers of open-source are most likely the end-users of the software. This means that they understand the required elements and the expected user experience included in the software. Compared to a handful of corporate individuals, thousands of programmers with the same vision have a better chance at enhancing the source code.
For example, Yellow Blockchain is a cryptocurrency trading platform that uses open-source software to enable users to list and trade their digital assets. The best part about open-source is that its users are continually contributing to the blockchain community.
Easy Detection of Security Risks
You’re going to be dealing with cryptocurrencies — a high-value digital asset that you should protect at all costs, or else your users are going to dwindle in no time. Because of the collective power of open-source software, there’s a greater chance of developers spotting bugs and fixing them before it’s too late. It all boils down to probability, really — there’s a higher chance for one person among thousands to find a defect in the source code compared to one person in a group of five.
Once a developer repairs the code, they will release an upgrade to ensure that subsequent software versions will be free from bugs. With every update, the software becomes more and more reliable and secure.
Completely Free to Use
The essential advantage of open-source cryptocurrency exchange software is that it’s absolutely free. Anyone can participate in the development of a cryptocurrency exchange at little to no cost. You need to download the open-source code, and you’re free to play with it however you like it.
If you’re starting your crypto exchange business, you should consider going open-source instead of buying proprietary software, especially if you’re on a tight budget.
However, it is recommended to hire an in-house team of developers who can fix problems that need urgent attention, but you can do this down the road.
Open-source cryptocurrency exchange programs like OpenDAX by Openware have a proactive community of developers who are always scrutinizing the code for potential problems. You can have a personal team of experts who’ve got your back on the tech crunch.
Freedom to Tweak the Software
Modifying proprietary software is nearly impossible to do. Its source code is usually a heavily guarded secret because, as the name suggests, it is exclusively their publishers’ property. Only the owner of the proprietary software can tweak or add features to the source code. If you violate any part of the user agreement, you might end up with serious legal repercussions.
Open-source software is the complete opposite. Since it’s licensed under GPL, it’s naturally distributed publicly among users. It means that you can tweak your branch of the software however you want.
Final Thoughts
Businesses can utilize open-source software to provide their users with a versatile platform to trade cryptocurrencies with ease.
Even those with little coding knowledge can establish their crypto exchange business by diving into the world of open-source. You can be part of an innovative community of developers, where free source code is continuously improved.
If you’re setting up your crypto exchange business, open-source cryptocurrency exchange software like OpenDAX can help set the wheels of your project in motion at a very low cost. You can tweak it however you like, plus you have access to a plethora of updates from developers, constantly tinkering with it.
Make sure to clap and leave your comments about your own experience with open-source software and Blockchain & Fintech software development.
