Open-Source Exchange

Definition ∞ An Open-Source Exchange is a trading platform for digital assets where the underlying code is publicly available for inspection, modification, and distribution. This transparency allows for community review, fostering trust and enabling independent verification of the exchange’s operations. Participants can audit the code to understand its functionalities and identify potential vulnerabilities. This model stands in contrast to proprietary, closed-source systems.
Context ∞ Open-source exchanges are a foundational element of the decentralized finance (DeFi) movement, promoting transparency and community governance. Crypto news frequently highlights the security implications and development progress of these platforms. The collaborative nature of open-source development is often presented as a strength, allowing for rapid iteration and community-driven improvements, though it also introduces unique security considerations.