Partially open source is not the same as fully open source

[PrivacyG]

Open source or partially open source does not mean high quality and super security but with available codes for checking, it's more easily for developer community to detect any bugs, security holes or backdoors in a wallet.

With close source wallet, it does not mean it is bad in security but users have to fully trust that company and developers. It's worse if close source is used by scammers as reasons to hide their scam from developer community, and it makes their scams more easily to succeed. High quality companies can build up good wallets but close source, while scammers will surely do their scams and use close source as one of masking layers for their scam plans.

It is true that Open Source or partially Open Source does not automatically guarantee a high level of Security.  After all, a lot of the high level Security Software or Hardware that has never been penetrated before is Closed Source.

It however guarantees that if there is any bad intention within the code, it can be detected by any body who reads the code.  There have been a LOT of Shit Coins that were Open Source but no body bothered to read the code so they were able to Scam their own community taking advantage of the lack of interest in auditing the code.  Auditing is not as easy as reading a book, so I understand why some would see it as a big waste of time.

So again, when you have Ledger playing the 'Seed is yours, Seed could be ours' game, Open Source definitely shines like a diamond.  Bitcoin is supposed to remove the need for Trust, which Closed Source Software is incompatible with.

[Cookdata]

We need to clearly understand the difference between a closed source and open source non custodial wallet, also, i have seen some exchanges claiming that they are non custodial wallet and so on, developers have their own way of verifying for all these, and also in determining whether a wallet is closed source or open source code, because some of these wallet can lie on what they are not, except we know how to verify on their claims.

Centralized exchanges are service operators, if they don't lie and be dishonest about their business, they wouldn't be able to feed and wouldn't be able to pay their staffs.

I have noticed since there is a demand for this wallet centralized exchanges add to their wallet popularly called web3 wallets. They provide seed phrase but the wallet are attached to the exchange so people can trade like Dex but this apps don't have reviews, they are not open source, pure business like their exchange but you will see alot of users interact with them even keep large amounts of coins for trade and some for hold.

Just some months ago, Trust wallet extension was announced to be hacked and victims lost a total whort in millions. I don't know if the refunds were done by Binance after the announcement. It was later discovered that one of the Trust wallet developer rolled out and update which was responsible for the hack, if this were to be a open source, the chance of it happening will be less as the community will get to review the codes. Closed source or partial is a time bomb, don't use.