Open Source 2.0: The development model of the future

Open Source is a testament to the human spirit.

The Open Source movement of the late 80s changed software by distributing its development. On an unprecedented scale, strangers gathered across the internet to build projects, producing world changing technology and industry defining software, much of which still powers our world today.

But while Open Source helped transform software development, software monetization remained the domain of corporations. Most of the wealth generated by open source software is concentrated in hands of a few. It is difficult for open source teams to sustain software development. Enterprises that use open source have no direct way of giving back to the community except through hiring. As such, most developers and projects work for free.

Popular platforms that provide version control and collaboration for open source projects are (as of July 2018) worth more than 8 Billion US$ collectively. These companies, which are ostensibly stewards of the movement, are instead more focused on selling SaaS products. Projects can be shutdown arbitrarily, contributors are mostly not credited or paid for their work, and teams have no good way of funding and sustaining their work.

This year, more than 80% of open source projects will end up being abandoned.

However, with the world moving towards decentralization, a new paradigm has emerged to save the day: Open Source 2.0, first pioneered by Bitcoin.

If Bitcoin were a startup, it would be the fastest growing unicorn in recent history. But Bitcoin defies traditional categorization, because it is not just an open source project, nor a startup, nor mere internet money.

Bitcoin, the first of many OS2.0 projects, stands at the intersection of business, finance and technology. It is a novel development model that captures the bootstrapping elements of startups, the collaborative environment of open source, and an entirely original approach to fund-raising and financing using cryptocurrency. OS2.0 has been successfully adopted by other cryptocurrency projects, like DASH, Ethereum, ZCash and more.

These projects commonly share:

1. Open source project code and distributed contributor networks
2. Cryptocurrency based funding
3. Aligned incentives for developers, early adopters and investors

Bitcoin’s success is a testament to the power of OS2.0. Projects can now be fully independent, run by distributed teams, and funded with cryptocurrency, all without jumping through hurdles that face traditional startups.

Open Source 2.0 works because it removes most of the friction involved with launching a new idea, and puts ideas and entrepreneurs first.

Good ideas find traction and collaborators through online communities. Projects have an easier time returning value to early adopters and stakeholders. With cryptocurrency funding, projects are no longer subject to the whims and fancies of traditional gatekeepers such as banks, incorporation laws, investors or VCs.

Project teams can concentrate on what really matters: execution.

But despite the advantages of OS2.0, not all projects need blockchain, nor is cryptocurrency based fundraising suitable for every use case. ICOs continue to face complications, and often run up massive compliance costs. Scams and shady projects plague the current cryptocurrency landscape due to the lack of accountability mechanisms.

The vast potential of OS2.0 is still not accessible to teams without deep domain knowledge of cryptocurrencies.

The question we ask ourselves at Source is: How can we bring Open Source 2.0 to the masses?