# Open Source: What it Means, How it Works, Example

## What Is Open Source?

Open source refers to a software program or platform with source code that is readily accessible and can be modified or enhanced by anyone.

Open source access grants users of an application permission to fix broken links, enhance the design, or improve the original code.

Open source software (OSS) hubs, such as GitHub, are an example of a kind of open collaboration that can broaden design perspectives beyond those of a single company or design work group.

Open source practices can also lead to considerable savings for consumers. Many open source offerings are provided for free, relying on a shareware or donation model rather than a purchase price.

### Key Takeaways

*   Open source refers to a project, often a software or IT development project, with freely available code and permission to make edits, bug fixes, alterations, and enhancements.
*   Open source software efforts have been behind popular applications and operating systems including the Android OS for smartphones and the Firefox web browser.
*   Open source relies on community engagement, trust, and permissive licensing strategies.
*   An advantage of open source is the greater potential for innovative ideas and changes offered by a large community of coders compared to a single design firm.
*   A disadvantage of open source is that no one entity is responsible for maintaining the software so flaws won't be fixed unless they're discovered.

## Understanding Open Source

Open source is a perfect illustration of the adage “It takes a village to raise a child.” To perfect the usability of a product, multiple minds and talents are needed for various areas of a software product’s functionality.

Platforms developed and built on user collaboration can work better and have fewer bugs than those built by a single entity. Software developers who encourage the open source concept believe that, by giving any interested party the ability to modify a product’s source code, the application will be more usable and error-free over the long term.

Mozilla Firefox, Linux, WordPress, [Bitcoin](https://www.investopedia.com/terms/b/bitcoin.asp), and [Android](https://www.investopedia.com/terms/a/android-operating-system.asp) are popular examples of open source projects. By making their source codes available to all, open source products serve as educational tools for technology students who study the codes, learn from them, and opt to create even better codes.

Hence, better and more innovative applications are created from the foundation of previous open source applications. 

> **Fast Fact**
>
> Dr. Richard Stallman spearheaded the free software movement in the 1980s. He believes that software users should be free to run, edit, add to, and share software.

## Open Source Licensing

Open source promotes the free redistribution of source codes. Hence, it is also called free software. The source code creates the built-in functionality that guides how a software application works.

Traditionally, most software or apps that are purchased have codes that can be legally manipulated or modified only by the original creators—usually an individual, team, or organization.

This type of software is called proprietary software or closed source software. Proprietary software is equipped with licenses that compel its users to agree to guidelines erected by the original creator. It also can be expensive to buy.

Open source licenses differ from proprietary licenses in that users have to agree to the rules associated with modifying, using, and distributing the software.

For example, some open source licenses stipulate that if a user alters and distributes a program to others, they must also distribute the source code without charging a licensing fee.

## Open Source Advantages and Disadvantages

### Advantages

*   Because no permission is required when using an open source software application, programmers can usually fix and upgrade an application’s source code in less time than it could take with closed source. With closed source programs, the company or creators of the code have to be notified and users may have to wait a considerable amount of time before any changes have been made to the application.
*   In [fintech](https://www.investopedia.com/terms/f/fintech.asp) areas such as [big data](https://www.investopedia.com/terms/b/big-data.asp), [blockchain](https://www.investopedia.com/terms/b/blockchain.asp) technology, and [cloud computing](https://www.investopedia.com/terms/c/cloud-computing.asp), innovation is driven by a collaborative open source channel. Due to the tremendous amount of data that emerging technology feeds from, companies are adapting to open source techniques and sharing the work load with external users who can contribute and find new possibilities for the shared data.
*   The spirit of open source has spread beyond contributing to code. Technology innovators, developers, and programmers have devised applications to support collaboration among users all over the world in all sorts of areas, including [peer-to-peer insurance](https://www.investopedia.com/terms/p/peertopeer-p2p-insurance.asp).

### Disadvantages

*   Security can be at risk with open source software due to its accessibility by those who potentially would exploit code for malicious purposes.
*   No one person or organization is necessarily responsible for the back end of an open source software program. So a flaw or breach may not be addressed until a user or coder happens to find it.
*   If an open source program isn't being updated or improved, it could become unreliable, ineffective, and potentially unusable by some.

## Why Does Open Source Exist?

Open source software programs exist because their creators felt it was important and useful to reveal the coding and make it editable by anyone. These individuals believe that others can improve their product. They may also feel that the cost to use similar programs is prohibitive and they prefer that their program be freely available to all.

## Can Open Source Be Harmful to Users?

Possibly. Any source code can have flaws that threaten the security of, say, user information. Such flaws in open source code must be located and fixed without a dedicated coder or team that monitors for them. Open source invites anyone to edit the code and that can open the door to unwelcome behavior.

## What Was the First Example of Open Source?

One early example involves the Remington Rand UNIVAC division. In 1953, the company gave its customers the software and its source code. Customers were encouraged to send the company feedback and improvements.

## The Bottom Line

Open source refers to making the source code of software programs and platforms accessible by all. Individuals are invited to edit the code with the purpose of improving programs for users' benefit. Closed source software is proprietary and accessible by only its creator.

Open source software has been involved with a variety of well-known programs and projects, including the Firefox browser, the WordPress content management system, and the Android operating system.  

> **Article Sources**
>
> 1.  Open Source. "[The Open Source Definition (Annotated)](https://opensource.org/definition-annotated/)."
>     
> 2.  Free Software Foundation. "[About](https://www.fsf.org/about/)."
>     
> 3.  Internet Hall of Fame. "[2013 Inductee Richard Stallman](https://www.internethalloffame.org/inductee/richard-stallman/#:~:text=Richard%20Stallman%20%28stallman.org%29,began%20developing%20GNU%20in%201984.)."
>     
> 4.  InMotion Hosting, Inc. "[Open Source vs Proprietary Software](https://www.inmotionhosting.com/blog/open-source-vs-proprietary-software/)."
>     
> 5.  National Association of Insurance Commissioners. "[Center for Insurance Policy and Research: Peer-to-Peer (P2P) Insurance](https://content.naic.org/cipr-topics/peer-peer-p2p-insurance)."
>     
> 6.  Open Source. "[How Open Source Underpins Blockchain Technology](https://opensource.com/article/20/10/open-source-blockchain)."
>     
> 7.  Saumo Pol. "[History of Open Source Software](https://www.btw.so/blog/history-of-open-source-software/)."