White Label vs Open Source: Choose The Best Solution For Your Business

Vadim Nikiforov Chief Commercial Officer

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Crypto wallets play a key role in managing and safeguarding assets within the cryptocurrency industry. Since businesses increasingly explore the opportunities within this space, the choice of a crypto wallet solution becomes an important decision with far-reaching implications for success and sustainability.

Crypto Wallets Simply Put

Crypto wallets are digital tools where users can store, send, and receive cryptocurrencies securely. Wallets store private keys to protect assets from intruders. They do so, however, in different ways. Custodial wallets, for instance, are in charge of protecting users’ assets. Whereas non-custodial, or web3 wallets grant users direct control over their funds. More about custodial and non-custodial wallets you can find here.

For entrepreneurs venturing into the crypto space, the adoption of a stable crypto wallet is not merely a technical necessity but a vital business move. As businesses aim to dive into the potent crypto market, the choice between white label and open source becomes a critical decision that can impact branding, time-to-market, costs, and long-term scalability. In the upcoming sections, we discuss the two options—white label and open source—with insights to help businesses make wise decisions.

Quick note: If you want to start your own crypto wallet business, check out this guide. Here you will find a detailed plan, with approximate costs for each step.

White Label Crypto Wallets: All You Need To Know

A white-label crypto wallet represents a collaboration between two entities, a developer and client. In essence, a white label product is developed by one company and subsequently rebranded and offered by another. In the context of crypto wallets, a white label solution provides businesses with a pre-built and customizable framework, which enables them to quickly enter the market with a branded wallet adjusted to their specifications.

The white label technology encompasses a range of components, from the user interface to the underlying functionalities, legal, banking, and marketing assistance. These components are crafted by a provider, allowing businesses to focus on core competencies.

Advantages For Business

• Customization and branding. White label crypto wallets empower businesses to inject their exclusive brand identity into the product. From color schemes to logos, every aspect can be converted to match the business’s visual aesthetics. This not only improves brand recognition but also fosters trust and familiarity among users;
• Quick deployment and time-to-market. One of the most significant advantages of white label solutions is the rapid deployment. With a pre-built framework in hand, businesses can swiftly conform the solution to their needs, thus minimizing development cycles and capitalizing on appearing market opportunities;
• Support and maintenance. Providers of white-label solutions often deal with the essential aspects of support and maintenance. This means businesses can rely on the expertise of the solution provider and free up their resources to focus on decisive initiatives and growth.

Limitations and Considerations

• Cost implications. While white label solutions can knock off upfront development costs, businesses should be mindful of ongoing fees and potential hidden expenses associated with development and support;
• Dependency. Relying on a third-party provider may entail aligning with the provider’s roadmap and updates. Such a scenario may limit the autonomy of a business;
• Lower flexibility. While white label solutions offer a quick entry into the market, businesses might face limitations in terms of customization and scalability. Reaching the balance between immediate market presence and long-term scalability is imperative for a successful white label crypto wallet.

Open Source Crypto Wallets: All You Need To Know

An open-source crypto wallet represents a departure from the proprietary nature of many software solutions. In this model, the source code of the wallet is made freely available for public scrutiny, modification, and enhancement. Unlike white label solutions, where the development process is proprietary, open source invites collaboration from a diverse community of developers, endowing to transparency and innovation.

Advantages for Businesses

• Transparency and flexibility. Businesses can inspect the source code for a clear understanding of how the wallet functions. This transparency not only builds trust but also provides the flexibility to tailor the wallet to business conditions;
• Community support and innovation. Open-source crypto wallets benefit from the collective expertise of a global community of developers. Such a collaborative environment encourages continuous innovation, with contributors bringing diverse perspectives and solutions that upgrade the wallet’s features and security;
• Cost-effectiveness. Open-source technology can be cost-effective for businesses, as it liquidates operational fees associated with proprietary solutions. Businesses have greater control over their budgets and can allocate resources to something else, say, banking specialists, legal experts, office, etc.

Limitations and Considerations

• Necessary technical expertise. Implementing and maintaining an open-source crypto wallet may require a higher level of technical expertise compared to white label solutions. Businesses need skilled developers who can work with the code smartly;
• Security concerns. While open source allows scrutiny, the responsibility for ensuring the security of the wallet rests with the business. Here come implementing strict security measures, regularly updating the software, and actively addressing arising vulnerabilities;
• Customization challenges. Customizing an open-source wallet can be more intricate compared to white label solutions. Businesses must have the technical know-how to administer and modify the code effectively, or they may require external development support.

How To Select The Right Solution For Your Business?

Consider Key Factors

Picking the right crypto wallet solution for your business requires a thorough assessment based on specific criteria. Here are the factors to help you make a rational decision:

• Elaborate on business objectives. Align the choice of a crypto wallet with your overarching business objectives. Determine how the wallet will contribute to achieving your goals within the crypto market;
• Assess technical capabilities. Evaluate the technical proficiency within your organization. Weigh whether you have mandatory resources and expertise to implement and maintain the chosen solution;
• Calculate your budget. Consider financial constraints and the long-term vision for your business. Balancing immediate cost savings with future scalability is essential. Estimate how the chosen solution aligns with your budget and growth trajectory;
• Check scalability. Grade the scalability of the chosen solution to accommodate future growth and increased user demand;
• Prioritize security. Examine the security measures: are they enough to protect users’ assets? Can they be improved and how?
• Gauge customization opportunities. Check the level of customization required to align the wallet with your brand and user experience;
• Mitigate risks. Conduct thorough due diligence on the chosen solution provider. Determine their track record and reputation in the industry.

Investigate Case Studies

To illuminate the decision-making process, explore real-world success stories with white label and open source crypto wallets. Here are a couple of examples:

White Label Crypto Wallets

In our prominent case study, Betcoin, an online exchange and casino, implemented a white label crypto wallet solution to boost its user experience and streamline transactions. The white label technology allowed Betcoin to customize the wallet and integrate it into the existing platform, maintaining brand consistency. This swift deployment not only met the immediate needs of Betcoin’s users but also facilitated a quicker time-to-market. Such an approach enabled the platform to capitalize on emerging trends within the crypto sphere.

Open Source Crypto Wallets

An exemplary case of a flourishing open source crypto wallet is MyEtherWallet (MEW), designed for Ethereum and Ethereum-based tokens. Its user-friendly interface and transparent code have garnered a strong community following. MEW’s success demonstrates how open-source technology can nurture a synergistic environment, with constant improvements and adaptability to growing user needs.

Research Expert Insights and Recommendations

Gaining insights from industry professionals is crucial for businesses torn between white label and open source crypto wallet solutions. Here is what experts think: 

Experts About White Label Crypto Wallets:

• White label solutions, by leveraging pre-built frameworks, lessen risks associated with in-house development. White labels provide a tested and reliable foundation for businesses to build upon, diminishing the likelihood of technical glitches or security vulnerabilities;
• Utilizing white label solutions expedites the development process. Industry professionals emphasize that the time saved can be central in seizing market opportunities and gaining a competitive edge;
• White label solutions offer customization without the complexity of starting from scratch. This allows businesses to create a different and branded wallet without extensive development.

Experts About Open Source Crypto Wallets:

• Open source cultivates community-driven innovation;
• Open source provides flexibility for businesses to shape the wallet in accordance with their business goals;
• The transparency inherent in open source code builds trust among users. Users appreciate the ability to inspect the code to make sure the wallet operates securely and meets their expectations.

Recap: White Label And Open Source Crypto Wallets

The choice between white label and open source has lasting implications. Let’s recap the key attributes of the two:

White Label Crypto Wallets:

• White label solutions offer businesses the ability to fit the wallet into their brand identity;
• Rapid deployment ensures businesses can capitalize on market opportunities promptly;
• Providers of white-label solutions often handle support and maintenance;
• While cost-effective for initial deployment, businesses should consider ongoing fees, potential dependencies on providers, and limitations in terms of flexibility and scalability.

Open Source Crypto Wallets:

• Open source wallets provide transparency, allowing businesses to scrutinize and adjust the code;
• The community adds to the code, providing businesses with a quality solution;
• Businesses can trim costs associated with operational fees and have more control over budget;
• Businesses may face challenges in terms of technical expertise required for implementation, security issues, and customization complexities.

In concluding this exploration, it’s paramount for businesses and future operators to recognize that there is no one-size-fits-all solution. The choice between white label and open source wallets should be driven by a careful consideration of business objectives, technical capabilities, budget constraints, and long-term vision.