source code</strong></a> in OOS is accessible to be analyzed, edited, and redistributed by anyone. However, some OOS licenses require the original source code to be displayed next to the modified source code.</p>\n<p><strong>Closed-source software</strong> is the opposite of OOS. It doesn&rsquo;t make its source code available to anyone. Therefore, only a specific person, team, or organization that produced it has the authority to alter and allocate it.</p>\n<p>Open-source software has a number of benefits compared to proprietary software. Some of the benefits include:</p>\n<ul>\n<li>OOS principle of open collaboration that leads to<strong> a</strong> <strong>higher-quality product</strong> as a result of the open call for participation. This brings in a diverse group of specialists from many sectors.</li>\n<li><strong>Fixing faults can be faster and cheaper</strong> with OOS than with closed-source software. 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Investing","slug":"trading-and-investing","updated":null,"chapter":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters/learn-crypto-trading.jpg","chapter_simple":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters-simple/crypto-trading-101.jpg","rating":80,"sections":[{"slug":"where-to-trade-crypto","title":"Where Can You Trade Cryptocurrencies?","featured_image_id":10342,"status":"published","chapter_id":7,"language":"en","order":1,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/where-to-trade-crypto","featured_image":{"id":10342,"uuid":"0bd8d78a-9423-48ee-9161-34dc1872b97c","public_url":"https://assets.bitdegree.org/crypto/storage/optimized/where-to-trade-crypto-featured-image.jpg","path":"crypto/storage/optimized/where-to-trade-crypto-featured-image.jpg","original_path":"crypto/storage/original/where-to-trade-crypto-featured-image.jpg","name":"where-to-trade-crypto-featured-image.jpg","original_name":"where-to-trade-crypto-featured-image.jpg","title":null,"alt":null,"width":1024,"height":576,"disk":"spaces","status":"uploaded","readable_file_size":"85.96KB"},"youtube_video":null},{"slug":"how-to-invest-in-crypto","title":"Investing in Crypto: What Investing Options Do You 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One?","featured_image_id":11310,"status":"published","chapter_id":7,"language":"en","order":3,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/ico-vs-ido","featured_image":{"id":11310,"uuid":"315e8a2b-93a1-4870-be48-a2a09d801663","public_url":"https://assets.bitdegree.org/crypto/storage/optimized/ico-vs-ido-featured-image.jpg","path":"crypto/storage/optimized/ico-vs-ido-featured-image.jpg","original_path":"crypto/storage/original/ico-vs-ido-featured-image.jpg","name":"ico-vs-ido-featured-image.jpg","original_name":"ico-vs-ido-featured-image.jpg","title":null,"alt":null,"width":1024,"height":576,"disk":"spaces","status":"uploaded","readable_file_size":"64.39KB"},"youtube_video":null},{"slug":"what-is-an-airdrop","title":"What are Crypto Airdrops and How to Get Them?","featured_image_id":11359,"status":"published","chapter_id":7,"language":"en","order":4,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-an-airdrop","featured_image":{"id":11359,"uuid":"7b43c968-1275-4d3e-acb1-1707a43a4014","public_url":"https://assets.bitdegree.org/crypto/storage/optimized/what-is-an-airdrop-featured-image.jpg","path":"crypto/storage/optimized/what-is-an-airdrop-featured-image.jpg","original_path":"crypto/storage/original/what-is-an-airdrop-featured-image.jpg","name":"what-is-an-airdrop-featured-image.jpg","original_name":"what-is-an-airdrop-featured-image.jpg","title":null,"alt":null,"width":1024,"height":576,"disk":"spaces","status":"uploaded","readable_file_size":"66.05KB"},"youtube_video":null},{"slug":"how-to-get-free-crypto","title":"How to Get Free Crypto Assets?","featured_image_id":6542,"status":"published","chapter_id":7,"language":"en","order":5,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-get-free-crypto","featured_image":{"id":6542,"uuid":"4fceb9ab-391e-4ef9-b00d-c871a49878a3","public_url":"https://assets.bitdegree.org/crypto/storage/media/how-to-get-free-crypto.o.jpg","path":"crypto/storage/media/how-to-get-free-crypto.o.jpg","original_path":"crypto/storage/media/how-to-get-free-crypto.jpg","name":"how-to-get-free-crypto.o.jpg","original_name":"how-to-get-free-crypto.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"93.93KB"},"youtube_video":null},{"slug":"how-to-arbitrage-crypto","title":"What is Crypto Arbitrage: The Main Principles","featured_image_id":null,"status":"published","chapter_id":7,"language":"en","order":6,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-arbitrage-crypto","featured_image":null,"youtube_video":null},{"slug":"what-is-fud","title":"What is FUD: How to Use It to Your Advantage While Investing in Crypto?","featured_image_id":11394,"status":"published","chapter_id":7,"language":"en","order":7,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-fud","featured_image":{"id":11394,"uuid":"defd32c5-d3e1-4e66-9f58-e2ee316bad3a","public_url":"https://assets.bitdegree.org/crypto/storage/optimized/what-is-fud-featured-image.jpg","path":"crypto/storage/optimized/what-is-fud-featured-image.jpg","original_path":"crypto/storage/original/what-is-fud-featured-image.jpg","name":"what-is-fud-featured-image.jpg","original_name":"what-is-fud-featured-image.jpg","title":null,"alt":null,"width":1024,"height":576,"disk":"spaces","status":"uploaded","readable_file_size":"65.30KB"},"youtube_video":null},{"slug":"investing-in-cryptocurrency","title":"Investing in Cryptocurrency: How to Manage Your Risks?","featured_image_id":null,"status":"published","chapter_id":7,"language":"en","order":8,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/investing-in-cryptocurrency","featured_image":null,"youtube_video":null},{"slug":"what-is-a-rug-pull-in-crypto","title":"What is a Rug Pull in Crypto?","featured_image_id":6532,"status":"published","chapter_id":7,"language":"en","order":9,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-a-rug-pull-in-crypto","featured_image":{"id":6532,"uuid":"be8043fb-078c-4487-9af9-d2d9c2b574ea","public_url":"https://assets.bitdegree.org/crypto/storage/media/what-is-a-rug-pull-in-crypto.o.jpg","path":"crypto/storage/media/what-is-a-rug-pull-in-crypto.o.jpg","original_path":"crypto/storage/media/what-is-a-rug-pull-in-crypto.jpg","name":"what-is-a-rug-pull-in-crypto.o.jpg","original_name":"what-is-a-rug-pull-in-crypto.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"92.28KB"},"youtube_video":null},{"slug":"how-to-avoid-rug-pulls-in-crypto","title":"How to Spot and Avoid Rug Pulls?","featured_image_id":6555,"status":"published","chapter_id":7,"language":"en","order":10,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-avoid-rug-pulls-in-crypto","featured_image":{"id":6555,"uuid":"80cbed9d-3b4b-45d9-9a85-d2d8108c0f32","public_url":"https://assets.bitdegree.org/crypto/storage/media/how-to-avoid-rug-pulls.o.jpg","path":"crypto/storage/media/how-to-avoid-rug-pulls.o.jpg","original_path":"crypto/storage/media/how-to-avoid-rug-pulls.jpg","name":"how-to-avoid-rug-pulls.o.jpg","original_name":"how-to-avoid-rug-pulls.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"111.99KB"},"youtube_video":null},{"slug":"how-to-avoid-crypto-taxes","title":"The Key Legal Techniques of Avoiding Crypto Taxes","featured_image_id":6526,"status":"published","chapter_id":7,"language":"en","order":11,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-avoid-crypto-taxes","featured_image":{"id":6526,"uuid":"1e44162c-ef1d-4010-81b4-9e8d1809aedf","public_url":"https://assets.bitdegree.org/crypto/storage/media/how-to-avoid-crypto-taxes.o.jpg","path":"crypto/storage/media/how-to-avoid-crypto-taxes.o.jpg","original_path":"crypto/storage/media/how-to-avoid-crypto-taxes.jpg","name":"how-to-avoid-crypto-taxes.o.jpg","original_name":"how-to-avoid-crypto-taxes.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"99.10KB"},"youtube_video":null}]},{"id":8,"title":"Crypto Analysis","slug":"crypto-analysis","updated":null,"chapter":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters/learn-crypto-analysis.jpg","chapter_simple":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters-simple/crypto-analysis-101.jpg","rating":100,"sections":[{"slug":"what-is-bullish-and-bearish","title":"Bearish and Bullish Markets: Do They Matter?","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":1,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-bullish-and-bearish","featured_image":null,"youtube_video":null},{"slug":"best-technical-analysis-indicators-for-crypto","title":"5 Best Crypto Technical Analysis Indicators You Must Know About","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":2,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/best-technical-analysis-indicators-for-crypto","featured_image":null,"youtube_video":null},{"slug":"what-is-candlesticks","title":"Technical Analysis: What are Candlesticks, Trendlines, and Patterns?","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":3,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-candlesticks","featured_image":null,"youtube_video":null},{"slug":"how-to-track-new-crypto-coins","title":"Crypto Tracking: How to Track Your Favorite Coins & Tokens?","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":4,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-track-new-crypto-coins","featured_image":null,"youtube_video":null},{"slug":"how-to-research-crypto","title":"Crypto Research Fundamentals & Social Signals: Your Daily Trading Strategy","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":5,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-research-crypto","featured_image":null,"youtube_video":null}]},{"id":9,"title":"Mining","slug":"mining","updated":false,"chapter":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters/learn-crypto-mining.jpg","chapter_simple":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters-simple/crypto-mining-101.jpg","rating":80,"sections":[]},{"id":10,"title":"Crypto Terms","updated":false,"chapter":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters/crypto-101-glossary.jpg","chapter_simple":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters-simple/crypto-glossary-101.jpg","rating":100,"sections":["A","B","C","D","E","F","G","H","I","J","K","L","M","N","O","P","Q","R","S","T","U","V","W","X","Y","Z"]}],"nextSection":{"id":570,"original_id":null,"author_id":42,"translator_id":null,"title":"What is Parachain?","slug":"what-is-parachain","section":"P","keyword":"Parachain","status":"published","definition":"an application-based data structure that runs in parallel with other parachains on the Polkadot network.","content":"<p><strong>Parachain is an</strong> <strong>application-based data structure</strong> (which could take a form of a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-blockchain/">blockchain) that runs on the Polkadot network in parallel with other parachains. Parachains are connected to Polkadot in a way that allows developers to create new, independent networks that are powered by the same framework as the main chain.</p>\n<p><a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-substrate/">Substrate, a new-generation framework for developing blockchains with Web3 capability, which is also used to build and develop Polkadot and Kusama, <strong>supports the technology behind parachains</strong>.</p>\n<p>Each parachain is connected to the main chain via the central <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-relay-chain/">Relay Chain</strong></a>, allowing them to operate independently without jeopardizing the network's integrity. <a href=https://www.bitdegree.org/"https://research.web3.foundation/en/latest/polkadot/XCMP/index.html/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Cross-Chain Message Passing (XCMP)</strong></a> allows the parachains to exchange messages with other parachains on the same Relay Chain. As it can have its own functionality, tokens, governance system, and other blockchain properties, <strong>parachain can be treated as a standard blockchain</strong>.</p>\n<p>Since each parachain is linked via Relay Chain, it can still benefit from the Polkadot network's security and be backed by its validator architecture. To put it in another way, maintaining a parachain doesn&rsquo;t require the creation of one's own validator community.</p>\n<p>Validators are also assisted by <strong>collator nodes</strong> in securing parachains. Though collator nodes, unlike validators, do not secure the network. They keep track of all parachain data, choose new block candidates, and confirm the inputs and state of a parachain along with validators.</p>\n<p>Note that the <strong>economics of parachains might differ from those of the broader Polkadot ecosystem</strong>. This means that they can charge various transaction fees based on the preferences of their own community.</p>","level":"easy","meta_title":"What is Parachain? Definition & Meaning | Crypto Wiki","meta_description":"Parachain meaning: Parachain - an application-based data structure that runs in parallel with other parachains on the Polkadot network.","meta_keywords":null,"language":"en","created_at":"2022-03-24T11:59:00.000000Z","updated_at":"2022-09-27T05:40:18.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-parachain"},"prevSection":{"id":951,"original_id":null,"author_id":40,"translator_id":null,"title":"What is Off-Chain?","slug":"what-is-off-chain","section":"O","keyword":"Off-Chain","status":"published","definition":"transactions are processed outside of the blockchain network. They offer speed and low costs.","content":"<p><strong>Off-chain transaction</strong> is a type of transaction that is processed outside of the blockchain network at a faster speed and lower cost. Moreover, there are two types of transactions that take place on the blockchain: on-chain and off-chain.</p>\n<p><a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-on-chain/">On-chain transactions</strong></a> are the ones that are represented on the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-distributed-ledger/">distributed ledger</strong></a> and can be seen by all network users. On the opposite side, off-chain transactions take place outside of the blockchain network. Because no ledger verification is performed, such a transaction does not necessitate the usage of <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-miner/">miners.

/n

Different from on-chain transactions, off-chain ones are able to be performed in an instant. This process involves <strong>lower fees</strong>, speed, and increased privacy.</p>\n<h3>How Do Off-Chain Transactions Happen?</h3>\n<p>Off-chain transactions that take place outside a blockchain network can be carried out in several ways. One of which is utilizing payment chains like Bitcoin&rsquo;s <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-lightning-network/">Lightning Network</strong></a> that manage <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-peer-to-peer-p2p/">peer-to-peer transactions.</p>\n<p>Another common procedure of off-chain transactions is to exchange <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-private-key-secret-key/">private keys</strong></strong></a> with a current wallet. A new owner is allocated to a specific wallet using this procedure. This has no effect on the blockchain network and is a quick way to complete the transaction.</p>\n<p>A few <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-decentralized-exchange-dex/">decentralized exchanges (DEX)</strong></a> have implemented the concept of trust to act as a guarantee among two people ready to conduct an off-chain transaction. P2P trading on Binance is a famous illustration of a platform that allows users to swap a variety of crypto tokens and pay using a variety of off-chain payment methods like bank transfers, Payoneer, and PayPal.</p>\n<p>Usually, off-chain transactions happen through trusted individuals or parties. Since there are cost, time, and anonymity benefits, off-chain transactions are increasing in popularity.</p>\n<p>Nonetheless, Solana and many other comparable crypto projects are aiming for reduced costs on-chain transactions with high <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-transactions-per-second-tps/">TPS.

/n

The Difference Between Off-Chain and On-Chain Transactions</h3>\n<p>The blockchain network represents on-chain transactions on the distributed ledger. It entails miners validating the transaction by verifying the ledger by miners. Transaction information is captured including everything that is happening on-chain.</p>\n<p>The transaction is uploaded to the distributed ledger and made public on the blockchain as a whole. As a result, it is irrevocable.</p>\n<p>With numerous other transactions in the line awaiting validation and a lot of stages to be completed, it is simple to see the reason why on-chain transactions take longer to complete efficiently. Furthermore, there may be <strong>substantial costs</strong> connected with on-chain transactions.</p>\n<p>These are a few of the explanations for why many users choose off-chain transactions. Several initiatives, though, are attempting to improve the performance and reduce network costs in blockchain transactions in order to make them more effective.</p>\n<p>Rather than being obligated to wait for validations from the blockchain network, off-chain transactions happen in an instant by using a few different techniques.&nbsp;</p>\n<p>On-chain transactions, on the other hand, need <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-validator/">validators to authenticate the transactions and this has high costs. As opposed to off-chain transactions that are typically free or very low cost.&nbsp;</p>\n<p>Off-chain transactions, unlike on-chain transactions, can&rsquo;t be seen on the blockchain, thus providing more privacy.</p>","level":"medium","meta_title":"What is Off-Chain? Definition & Meaning | Crypto Wiki","meta_description":"Off-Chain meaning: Off-Chain - transactions are processed outside of the blockchain network. They offer speed and low costs.","meta_keywords":null,"language":"en","created_at":"2022-04-22T06:31:47.000000Z","updated_at":"2022-05-13T14:32:24.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-off-chain"},"currentChapter":"O","currentSection":"what-is-open-source-software-oss","chapterTitle":"O","readingLevel":"easy"},"url":"/crypto/learn/crypto-terms/what-is-open-source-software-oss","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0">
Handbook Cover Page
Crypto Terms: Letter O

What is Open-Source Software (OSS)?

Open-Source Software (OSS) MEANING:
Open-Source Software (OSS) - a software that allows anyone to see, alter or distribute its source code.
Easy
1 minute

Let's find out Open-Source Software (OSS) meaning, definition in crypto, what is Open-Source Software (OSS), and all other detailed facts.

Usually, open-source software (OSS) is produced in an open and collaborative manner by a large number of people. Such projects are driven by the following principles:

  • Transparency
  • Free participation
  • Open exchange
  • Community-oriented development
  • Rapid prototyping

The source code in OOS is accessible to be analyzed, edited, and redistributed by anyone. However, some OOS licenses require the original source code to be displayed next to the modified source code.

Closed-source software is the opposite of OOS. It doesn’t make its source code available to anyone. Therefore, only a specific person, team, or organization that produced it has the authority to alter and allocate it.

Open-source software has a number of benefits compared to proprietary software. Some of the benefits include:

  • OOS principle of open collaboration that leads to a higher-quality product as a result of the open call for participation. This brings in a diverse group of specialists from many sectors.
  • Fixing faults can be faster and cheaper with OOS than with closed-source software. This is the case because a large number of people can address them and have the skill to resolve them.

However, it can take a long time for various participants to agree on strategic decisions. This is because open-source software is produced in a decentralized way, without a single organization guiding the process. Though to deal with this problem, open-source projects use unique governance methods.

Besides, there’s even a movement aimed at making the majority of software available under an open-source license. The movement is called the open-source software movement.

It also aims to advance open-source technology through the collaborative creation of high-quality code. Supporters of the open-source software movement produce and share code voluntarily. They do that because voluntary work is as part of the ideology of open cooperation.
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