Global Journal of Management and Business Research, D: Accounting and Auditing, Volume 22 Issue 2

III. B lockchain and its O pen- S ource S trategy Blockchain and open-source software have similar underlying technical architecture and governance logic, which both emphasize mobilizing all parties' enthusiasm in a decentralized way, thus promoting distributed and open innovation. Furthermore, both are the results of fostering collective action or collaboration in the face of dispersed individuals without administrative orders[8]. The development of blockchain technology has gone through three stages. The first stage is Bitcoin, which solves the centralization problem in digital transactions and successfully realizes the possibility of anonymous transactions[9]. The second stage of development is Ethereum, which proposes innovative contract technology to run in the blockchain network. It enables users to develop decentralized program applications in Ethereum freely, thus significantly improving the technological innovation level of blockchain and enhancing and expanding application scenarios[10]. Next is the third phase, which will facilitate the integration of blockchain with various technologies and application scenarios to build trust networks similar to those within open-source software and communities. a) Bitcoin and its open-source strategy In 2008, Satashi Nakamoto published Bitcoin: Peer-to-peer Electronic Cash System[11], which is the world's first introduction of bitcoin proper names and peer-to-peer cryptocurrencies[12] and is widely recognized as the white paper of Bitcoin. On January 3, 2009, Nakamoto released the first version of the blockchain, bitcoin 1.0, using the open-source C++ programming language for Windows only. Bitcoin is currently the most important digital currency, allowing users to conduct online transactions and payments without a financial intermediary. Bitcoin is called cryptocurrency mainly because it is protected by complex encryption technology[13]. Blockchain as the underlying technology of COINS, every user currency blockchain ACTS as connected nodes, and through a password Hash as a public key (Hash) 2 Blockchain is a decentralized network structure where each node can display or obtain any information [14]. When the user starts a new node, each node will store the public and private keys automatically generated by the Bitcoin blockchain system [15]. The user with bitcoin can send it to another user through the recipient's public key signature and the hash of the previous transaction. 2 Hash (Hash), refers to the Hash function, is the input of arbitrary length by Hash algorithm into fixed length of the output, the output is the Hash value. Hash is an algorithm, but also an idea, using hash can effectively improve the utilization of storage space, improve the efficiency of data query, but also can do digital signature to ensure the security of data transfer. and transaction records [16]. In general, blockchains operate like "proof of work" or "proof of stake"[17]. When information or transactions are sent to nodes in the blockchain, Computers at each node (commonly known as "miners") compute mathematical functions in a competitive manner ("mining"). Miners repeatedly add the input data and the hash value of each calculation until the hash value is below the difficulty target set by the Bitcoin blockchain. Miners who complete the calculation first have the right to send the information and transaction records to the nearest new block[18] and will be rewarded with new bitcoins automatically generated by the blockchain[19]. Because each block contains its ID and the last block's ID, all blocks can be linked without a central server, making it possible for people to keep track of everything on the blockchain and keep their jobs safe. Furthermore, information can be encrypted by hash functions before being directed to the blockchain since hash functions are one-way functions, so the hash values generated by hash functions and stored in the blockchain are not reverted to the original information [20]. Based on this, identity information pointing to the blockchain can be verified by repeatedly manipulating the hash function to see if it generates the same hash value to maintain confidentiality. In this case, the transparency, immutability, and non-repudiation of information will all be verified. Therefore, blockchain technology can be used as a sound "proof of existence" in electronic documents. Regarding Bitcoin's open-source strategy, its official website Bitcoin.org provides users with a free link to download "Bitcoin Core", an open-source software- driven by the Bitcoin community and licensed under the MIT license. According to the OFFICIAL OSI (Open Source Initiative) website, all copies or most of the software under the MIT license shall display the following copyright notice: "Anyone may obtain the Software and related documentation free of charge and process the Software without restriction, including, but not limited to, using, copying, modifying, merging, distributing, sublicense and/or selling copies of the Software and the right to permit those providing the software to do so [21]. "Thus, any blockchain developer can download the "Bitcoin Core" and its associated documentation for free to use or modify the Bitcoin blockchain to develop and distribute their applications. For example, the Machine Learning Laboratory of the Massachusetts Institute of Technology (MIT) released an open-source project on January 8, 2016, aiming to build an ecosystem of creating, sharing, and verifying educational certificates based on blockchain technology. The project's source code was published on Github in an MIT license[22]. Institutional Logic, Dilemma and Suggestions of Open Source Innovation: A Case Study of Blockchain 49 Global Journal of Management and Business Research Volume XXII Issue II Version I Year 2022 ( )D © 2022 Global Journals