Open Source vs. Source-Available: What the Coldcard Failure Teaches About Bitcoin Software Incentives
The Coldcard hack highlights the difference between open source and source-available software, and how it affects Bitcoin software incentives.
Intelligence analysis by Llama 3.3 70B
The recent Coldcard hack has raised questions about the security of open source software, and how it relates to Bitcoin software incentives.
Imagine you have a toy box that you share with your friends. If anyone can take a toy from the box and play with it, but nobody is in charge of making sure the toys are safe, that's kind of like what happens with open source software. Just because the code is available for everyone to see, it doesn't mean it's automatically safe or good.
Analysis
Open Source Philosophy
The Open Source Initiative's Open Source Definition outlines ten practical criteria for software to be considered open source. These include free redistribution without royalties, availability of source code in the preferred form for modification, and the right to create and distribute derived works. The Free Software Foundation (FSF) defines free software through four essential freedoms: the freedom to run the program, study how it works, redistribute copies, and distribute modified versions.
Coldcard's Firmware
Coldcard's firmware is released under MIT terms plus the Commons Clause, which removes the right to sell the software. This means that while the code is publicly readable, it cannot be used commercially. The Commons Clause's FAQ explicitly states that this is not open source.
Tragedy of the Commons
The Open Source philosophy relies on the assumption that enough motivated people will examine the code. When this assumption fails, it produces a classic tragedy of the commons, where individual users act in their own short-term self-interest rather than in the long-term interest of the group. This can lead to a situation where the shared resource is overused or neglected, and the system degrades as a result.
Key points
- The Coldcard hack highlights the difference between open source and source-available software
- Open source software relies on the assumption that enough motivated people will examine the code
- The tragedy of the commons can occur when individual users act in their own short-term self-interest
If the Bitcoin community can learn from the Coldcard hack and improve its understanding of open source software, it could lead to more secure and reliable software in the future. This could increase trust and adoption of Bitcoin and other cryptocurrencies.
On the other hand, if the community fails to address the issues highlighted by the Coldcard hack, it could lead to further security breaches and erosion of trust in open source software. This could have negative consequences for the broader crypto industry.
