The rapidly growing global market for halal products leads to a high demand for appropriate certification services. However, the existing forms of organizing of such activities are fraught with problems and risks that make obtaining Halal certificates an expensive and often inefficient procedure. The number of halal product certification centers around the world is estimated at about 400-500. It is quite difficult to get an exact amount, since there is still no single international database of registrars who have the right to issue certificates. The biggest problems with Halal certification are experienced by relatively small Muslim communities in non-Muslim countries. Often, they are forced to contact the relevant organizations in Muslim countries and pay a lot of money for obtaining certificates.
Fraud in the issuance of halal certificates is a serious problem. For example, in 2017, more than 20 Muslim centers were identified in India that did not have the right to issue certificates. More than 200 producers of meat and dairy products have become victims of such scams. In addition to large financial costs, they also suffered significant reputational losses.
Arises the question: is it possible to transform the system of issuing Halal certificates, and by what means can we achieve the transformation of this important industry for Muslims?
Yes, this is possible with the help of blockchain technology, which is a public digital registry of records. Blockchain eliminates the need to provide an independent evaluation of a product or its distribution network and can provide a high degree of guarantee of halal certificates issued and confirmed by a group of Muslim experts. Access to records (and, consequently, certificates) in the blockchain is open to all interested parties, regardless of which country they are located in. Consequently, there is no need for a verification procedure for the manufacturer and supplier of halal products.
Halal blockchain could provide full transparency of all transactions in the halal supply chain. It contains all the necessary information about the production and supply chains of halal products from the source of production to the point of purchase by the consumer. A very important factor in the effectiveness of the blockchain in the organization of halal supply chains of products is a high degree of trust associated with the impossibility of forgery and modification of records in the digital register.
The process of obtaining halal certificates can be easily replaced by a blockchain environment that will always be relevant for all participants. If the product range changes, the halal certificate expires, or the supplier changes, the blockchain will be able to provide the most up-to-date data confirmed by all participants and users of the network. In case of problems with halal certificates that threaten the reputation of the brand, the blockchain can help to quickly take the necessary measures to solve the problems that have arisen. Halal guarantees are necessary for Muslims who, according to the Holy Quran, must consume halal products. The Muslim world is a key stakeholder, and labeling anything as halal or Haram is an absolute Shariah law. Halal certification requires not only knowledge of Shariah, but also participation as a witness, decision-making and compliance control. Industrial supply chains are complex, involving Muslim and non-Muslim countries with different ecosystems. Many ingredients are imported from non-Muslim countries. For example, meat cannot be eaten without the Shariah method of slaughter. For products where there is a possibility that the ingredients are prohibited, the halal certificate is to avoid unreasonable doubts.
From the point of view of technology, manufacturers and owners of halal brands, blockchain technology can replace the traditional halal certification system. But such certification requires not only knowledge of Shariah law. Any decisions in the field of providing halal certificates, regulations and related powers cannot be blindly automated. Blockchain technology can greatly facilitate the work of the halal industry, making halal certification less difficult for them, and in case of problems, it will allow for more effective management of crisis situations.
The Islamic Coin project, built on the halal Haqq blockchain, is an ideal system for organizing certification under Shariah law. It has a Fatwa and is run by leading Muslim theorists and market leaders of Islamic finance. Issuing certificates confirming the possibility of using goods and products for the Muslim community on the Haqq blockchain is a completely new and most effective way to organize halal supply chains and sales of Shariah–approved goods and services.
Islamic Coin is the first project to provide the community with powerful financial technology that allows for seamless transactions, support innovation and charity. The project is 100% compliant with Shariah law and benefits the community. Developers focus on sustainable development and use technology and innovation to ensure financial sustainability.
“At the heart of Islamic finance is the prohibition on charging interest. Islamic finance has always been focused on not shifting most of the risks to one side of the financial relationship. In Islamic finance, balance and transparency of transactions should be observed, which can negatively affect our society,” says Mohammed AlKaff AlHashmi, one of the founders of IslamicCoin.
Islamic Coin targets 1.1 billion Muslims using the Internet. The project creates convenient tools designed for users who have never been owners of cryptocurrencies. The mission of the project is to provide the international community of followers of Islam with a reliable and promising financial instrument that allows for independent financial interaction, support innovation and philanthropy.
Using the power of the Muslim community, IsalmicCoin can become one of the most important and valuable crypto assets. If 3-4% of the Muslim online community own an Islamic coin, it will become a bitcoin-scale crypto asset, bringing its holders a trillion dollars and $100 billion for the Evergreen DAO.