Open-source Or Closed-Source Wallets — What Is the Best Choice for Your Business?

Crypto Wallets: Open Source vs. Closed Code

When a company decides to accept cryptocurrency payments, the first question is finding a suitable crypto wallet or payment gateway. With hundreds of options available, picking the right wallet or processor can be challenging. So how do you find a product that’s user-friendly, reliable, and secure?

Before diving into specific products, it’s crucial to determine whether you want an open-source or closed-source solution. Learn about the pros and cons of each in this guide.

Open-Source Crypto Payment Gateways: Opportunities and Risks

Open-source wallets and processors are appealing for their transparency. Anyone can review the code, identify vulnerabilities, and even suggest improvements.

You’ll find examples of open-source solutions in many areas:

• Browsers (Mozilla Firefox)
• Operating Systems (Linux)
• Cryptocurrencies (Bitcoin)
• Crypto Processors (SHKeeper)

The open-source model offers independent code audits, community support, and rapid customization to fit business needs. Sounds great, right? But there are nuances to consider.

Pros:

• Transparency and Independent Review. A whole community actively works on the code, continuously finding and fixing vulnerabilities, making the product safer.
• Flexibility and Customization. You can modify the source code to better tailor the product to your company’s needs.

Cons:

• Security Risks. Not every project has a large community, leaving smaller products vulnerable.
• Access for Hackers. Hackers can also review the code, potentially finding and exploiting weaknesses.

If you choose an open-source payment gateway, make sure the code is regularly reviewed by independent experts and backed by a strong, active community.

Closed-Source Solutions: Security and Control

Proprietary (closed-source) solutions give developers full control over the product. Hackers and bad actors find it much harder to discover and exploit vulnerabilities since the code isn’t publicly accessible. This reduces risks and helps businesses maintain security standards while focusing on their core tasks.

Examples of Closed-Source Products:

• Operating Systems (Microsoft Windows)
• Graphic Editors (Adobe Photoshop)
• Crypto Processors (BitHide)

Pros:

• Enhanced Control. Developers manage updates and address vulnerabilities directly.
• Code Security. Since the code is not publicly available, hackers can’t easily study its structure.

Cons:

• Limited External Audits. External experts can’t fully examine the code.
• Dependency on the Developer. If support for a product ends, users are left without updates.

Best Crypto Payment Processor for Business

For companies, securing crypto assets is paramount. Every so often, we hear about multi-million-dollar losses from data breaches and cyber attacks caused by minor software vulnerabilities. That’s why BitHide’s payment gateway is built with a closed code base and includes multiple protection measures.

Dark Wing Technology

This feature securely masks the wallet’s IP address, keeping server locations private. A triple-encrypted address is displayed on the public node, making the real location impossible to trace.

Full Control Over Seed Phrase

Our clients are the sole owners of their assets. In case of an emergency, they can recover access using any other crypto wallet.

Unique 512-Bit Encryption

To date, there’s no known technology capable of cracking this encryption. Your wallet’s usage history remains well-protected.

Wallet Operates on Client’s Server

BitHide users retain full control over wallet data and crypto assets, and they can choose whether to conduct KYC checks on their clients. And you?

Why BitHide?

Less routine, more financial control. Managing crypto flows without dedicated tools can lead to chaos. BitHide offers everything you need for convenience:

• Automatic Payment Address Generation — say goodbye to manual work;
• Sub-Wallet Creation — set up wallets for each department or business area;
• Bulk Payment — quickly send funds to multiple recipients;
• Balance Reports — a must-have tool for companies with numerous partners and complex payment structures.

Want to learn more? Visit bithide.io and our experts will walk you through all the features and advantages of BitHide’s crypto wallet for businesses!