The Importance of Open-Sourcing Financial Infrastructure

Open-source governance and development tools are extremely important for governments, organizations, and financial institutions that want to utilize blockchain technology. According to Daniela Barbosa, the executive director of Hyperledger and general manager of the Linux Foundation, using open-source blockchain technology is a necessary requirement for global institutions. Barbosa explained that organizations choose to work with Hyperledger because it operates under the Linux Foundation, which ensures open governance and development and is backed by major companies, governments, and organizations.

Barbosa emphasized that it is not only crucial for the tools to be open-source, but also for there to be an open development process and a diverse community of maintainers and code contributors. She stated that nobody wants to build on code owned by a single company because if that company goes out of business or stops being open source, users will have to pay license fees to continue using the software they built.

Barbosa highlighted the Linux Foundation’s focus on fostering open governance and developing tools. She mentioned the Linux Kernel as an example of open-source infrastructure that is widely used in various computing systems. She noted that open governance and development allow banks and companies to collaborate, even if they are competitors.

Barbosa also discussed the importance of open-source development in the financial services industry, particularly in relation to potential regulatory inquiries and changes to the underlying code. She mentioned that several organizations have made their software and code open-source on platforms like GitHub, but questioned whether that is enough to truly ensure open development and governance.

Barbosa then explained the development history of Hyperledger’s blockchain tools, specifically highlighting Hyperledger Besu, an open-source Java Ethereum execution client. Hyperledger Besu offers both public and private functionality and can run all Ethereum smart contracts. It supports all Ethereum token standards, including ERC-20 and ERC-721. Barbosa mentioned that Hyperledger Besu gained significant interest in the Ethereum ecosystem in 2019, thanks to a contribution from Consensys when the Hyperledger Foundation and Ethereum Enterprise Alliance joined forces. She also mentioned that 12% of Ethereum mainnet users run Hyperledger Besu as an execution client, with Consensys Linea and Hedera Hashgraph also using the client.

Open-source governance and development are essential for leveraging blockchain technology, and organizations are increasingly choosing to work with platforms like Hyperledger due to their open-source nature and the support they receive from major companies and organizations. The Linux Foundation plays a crucial role in fostering open governance and the development of tools, ensuring long-term considerations for the financial services industry and allowing collaboration between competitive entities. Hyperledger’s blockchain tools, such as Hyperledger Besu, have gained traction in the Ethereum ecosystem, offering extensive functionality for executing Ethereum smart contracts and supporting various token standards.

Sandy Mozingo

Sandy Mozingo

11 thoughts on “The Importance of Open-Sourcing Financial Infrastructure

  1. Open-source development is a waste of resources, organizations should focus on their own proprietary solutions.

  2. This article fails to mention any disadvantages of open-source development.

  3. Open-source governance can lead to disagreements and delays in decision-making.

  4. Hyperledger Besu is just another blockchain tool, nothing special about it.

  5. I don’t see the point of open-source governance, it just adds more complexity.

  6. Open-source development doesn’t ensure accountability, it’s just a mess of contributors.

  7. Open-source tools are too community-driven, they don’t prioritize the needs of businesses and organizations.

  8. I don’t trust open-source software, there’s no guarantee of quality or support.

  9. Open development and governance are overrated, it’s better to have a centralized authority.

  10. Open-source development is just a buzzword, it doesn’t guarantee better software.

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