The open source rise of Bitwarden

Market shifts and open source roots

Bitwarden began operations in 2015 in Santa Barbara, California, with an initial release of a web-based vault in August 2016. The company released mobile applications for iOS and Android that same year, followed by a Firefox extension in February 2017. In February 2018, it launched a stand-alone desktop application for macOS, Linux, and Windows. Bitwarden also released a Safari extension through the Safari Extensions Gallery in January 2018 and a command-line application in May 2018. To support passwordless authentication, Bitwarden acquired the startup Passwordless.dev in January 2018. The company also launched a bug bounty program at HackerOne in September 2017. Bitwarden achieved SOC 2 Type 2 and SOC 3 certification in August 2020. Bitwarden holds a 10% share of global individual users, which is double the 5% share held by 1Password. LastPass saw its usage fall from 21% in 2021 to 11% in 2024. This decline left a gap for open-source alternatives. Bitwarden also holds an 8% share of the US market, while 1Password holds 7%. The company transitioned to native apps for Android in early 2025 and improved testing speed.

Security architecture and pricing

Bitwarden uses AES-256 in CBC mode with HMAC for authentication. You should know that Bitwarden relies on Argon2id key derivation for its zero-knowledge architecture. 1Password uses AES-256 in GCM mode and a dual-key derivation system called 2SKD. 1Password’s Secret Key adds a second factor that is never transmitted to its servers in a usable form. This mechanism protects against server-side breaches. Bitwarden compensates with Argon2id and zero-knowledge architecture.

The sudden decision to raise the premium subscription price to $20 in February 2026 drew sharp criticism from Reddit users and Fast Company readers because the company failed to communicate the change through transparent channels. 1Password also raised prices this year, with WorkflowAutomation.net reporting a price of $2.99 per month in March 2026. A researcher presented a DOM-based extension clickjacking vulnerability affecting several managers, including Bitwarden, at DEF CON33 in August 2025. Bitwarden version 2025.8.2 fixed this issue in August 2025. Bitwarden also undergoes regular third-party audits, including a source code audit and penetration test by Cure53 in 2023 and network assessments by Insight Risk Consulting in 2020 and 2021. 1Password maintains a $6.8 billion valuation.

Enterprise migrations and scale

Bitwarden reached 15 million users and 80,000 businesses in July 2026. This expansion occurred as companies sought ways to manage hybrid work security in a market valued at $3.79 billion in 2026. The company uses its $100 million growth funding to expand into developer secrets and authentication. 1Password reported $400 million in annual recurring revenue in November 2025, which comes from 180,000 business customers. 1Password employs 1,400 people, while Bitwarden maintains a team of 257. Bitwarden remains a cheaper choice for many, as its premium plan costs $10 per year while 1Password Individual prices reached $47.88 per year according to TidBITS. The ability to inspect the codebase provides a reason for IT departments to prefer open-source tools. Users also host the backend on their own servers for increased control. Credential stuffing attacks rose 74% year-over-year in 2025, according to Verizon’s 2025 Data Breach Investigations Report. North American companies held 33.17% of global revenue in 2025. Analysts project the market will hit $10.63 billion by 2034. Why does 1Password maintain such a steep price gap?