IslamicCoin – is in fact ETH 3.0 with both hi level tech part and ideology. Next decade in crypto will be under the Green Flag of Islamic Finance for sure! The time has come for conservative crypto projects, halal, ecologic and compatible with Sustainable Growth Goals! Islamic Coin (ISLM) will for sure outperform ETH and many other EVM compatible blockchains by 2025. 1mln.% ulside potential of ISLM price is the HAQQ reality!!!
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Today Ethereum is the second largest cryptocurrency by capitalization. Since its appearance in July 2015, it has become one of the main competitors of Bitcoin and assumed to use blockchain technology to create smart contracts and secure cryptocurrency trading without the participation of a third party. An important factor of Ethereum success was the increased transaction speed. The average block time generation for Ethereum is significantly less than that of Bitcoin: 12 seconds versus 10 minutes. This leads to more block confirmations, which allows the mainers to complete more blocks and get more coins.
But time does not stand still. Now, when the number of cryptocurrencies and platforms for their interaction (blockchains) has grown significantly, Ethereum is already losing advantages that it originally offered. In this article we will compare Ethereum and IslamicCoin and at the same time tell you about the advantages of the new digital currency for the Muslim community over the Ethereum.
1. Consensus algorithm
Initially, Ethereum worked and continues to work on the Proof-of-Work algorithm, which requires significant computing power and electricity during mining. In 2016, the developers announced that they wanted to transfer the Ethereum blockchain to the Proof-of-Stake algorithm. As a part of the new algorithm work validator will still need to perform calculations to create blocks in the Ethereum blockchain. But such a transition, according to many experts, will not be painless. Along with a decrease in energy costs, the cost of remuneration for generating blocks will also decrease, which means that the economic efficiency of Ethereum mining will significantly decrease which will affect the value of the coin.
Unlike Ethereum, HAQQ blockchain and IslamicCoin cryptocurrency initially work on the Proof-of-Stake algorithm. This guarantees low energy consumption and makes IslamicCoin invulnerable to fluctuations in cost, depending on the technological features of the blockchain.
With other positive features, any blockchain project should be based on a certain ideology and provide a tool for effective interaction between system’ participants. Ethereum developers have never set themselves such tasks and focused only on cryptocurrency geeks. Most of them are interested only in high coin’ price and how many mining farms need to create in order to recoup costs and make profit.
Over the entire existence of Ethereum, there have been ups and downs, and at the peak of the coin’s value, the profit from its sale relative to the initial investment reached 1,600,000%.
Of course, cryptocurrency value is an important factor in its success and investment attractiveness, but IslamicCoin is not only a means of making a profit, but also an ethical ideology based on the principles of Islamic finance and confirmed by a Fatwa received from leading Islamic experts and theorists.
IslamicCoin is aimed at 1.1 billion Muslims using the Internet. The project creates convenient tools, for example, a special wallet designed for users who have never been owners of cryptocurrencies. Thus, the opportunities of the Muslim online community are expanding, getting the opportunity to use a new form of digital money.
3. Problems of Ethereum
Returning to the comparison of Ethereum and IslamicCoin, it is impossible not to tell about the main problems hindering the development of Vitalik Buterin’s creation.
• High gas charges
Gas is what makes the Ethereum network work. This is a fee paid to miners who provide computing power for the operation within the network. The gas price is a variable market price based on the demand for resources in the Ethereum network. The higher the demand, the higher the gas fee. The more gas someone is willing to pay, the faster the transaction will be completed. This means that when the popularity of Ethereum applications is growing rapidly, the price of gas can become prohibitively high, sometimes it costs more to complete a transaction than the cost of the token being transferred. For example, the gas fee while buying an inexpensive NFT may cost you more than the NFT itself.
• Disk space usage
As the size of the Ethereum network grows, launching a node becomes more and more difficult, as the history of the Ethereum blockchain takes up more and more disk space. This limits the number of users who can run a full node (by increasing the cost of running it), which then limits the number of nodes in the network.
• Network overload
In times of high computational load, the inefficiency of Ethereum leads to network overload when exchanging data between nodes, slowing down the execution of smart contracts. This overload limits the complexity of applications that can reasonably run on the Ethereum network.
• GPUs prices
The higher the demand for computing on the Ethereum network, the more miners can receive (in the form of gas fees), which makes them want to buy more GPUs to make more money. This can lead to a shortage of GPUs which will lead to a sharp increase in prices which has a significant impact on the work of other projects where high computing power is also required.
IslamicCoin is devoid of these disadvantages, has a consistently low cost of transactions within the network and provides users with a more convenient and flexible mechanism for making transfers and working with smart contracts. IslamicCoin can only be issued by those who contribute to the work of the network – validators and participants. Every time a new IslamicCoin coin is issued, 10% of the proceeds are deposited into a special Evergreen DAO account for further investment in Islamic Internet projects or transfer to Islamic charities.
Another big problem that Ethereum users, creators of applications and smart contracts may face up in the near future is censorship. The transition of Ethereum from the proof of work (PoW) consensus model to the proof of stake (PoS) model will make validators responsible for creating new blocks in the chain and verifying transactions. To become a validator, you need to deposit 32 ETHs or about $ 50,000. If you have enough coins, you can run several validators at once and get more control over the network operation. Many members of the Ethereum community are confident that this will lead to the emergence of powerful centralized organizations, including state ones, that will censor the actions of other users.
IslamicCoin cannot be censored. The project is created and managed by a team of professional financial experts and Islam leaders. Users should not worry about being forced to do something against their will. The only law applied in IslamicCoin is the rules of Islam, Shariah and Islamic finance which reliably protect HAQQ from any external encroachments.
5. Prospects of Ethereum and IslamicCoin
The uncertainty of Ethereum’ future during the transfer from PoW to PoS, huge problems with scaling the network and the possible introduction of censorship led to the fact that many ETH owners are in limbo and waiting for the pendulum of the future of Ethereum to swing. Ethereum’ creator, Vitalik Buterin, has already announced his support for reducing the share of any validators who censor the Ethereum protocol, if American regulators ask for it. But it doesn’t cost them anything just to block the network and actually deprive users of the opportunity to receive new coins.
Speaking about the prospects of the project, and first of all, the growth of the value of the IslamicCoin coin, it is worth turning once again to the main idea laid down in the project: providing users with a reliable, safe and ethical tool for making financial transactions and working with new technologies.
Already at the stage of closed sales, IslamicCoin aroused huge investor interest and was able to raise more than $ 200 million in just a few weeks. Unlike technically outdated Ethereum, which has a lot of problems that are unlikely to be dealt with in the near future, IslamicCoin uses the full power of the most progressive blockchain technologies and is based on the most fair and reliable ideology and rules of conduct.
Shariah Compliant Digital Money is a slogan under which you can conquer the blockchain tops and increase the value of the coin in the most correct and reliable way – by the power of the community, faith and confidence in the correctness of the chosen path.