Blockchain projects based on laws of Islam and Sharia, as well as related cryptocurrencies, did not appear today. The idea of combining digital technologies, cryptocurrencies and Islamic finance has long been floating in the minds of blockchain developers trying to implement digital halal ecosystems. In this article, we will compare several of the most popular projects in the field of cryptocurrencies and De-fi and see how they are suitable for use by the Muslim community.
The main evaluation criteria are:
1. Usefulness for the Muslim community (WP assessment);
2. Technology used;
3. Command and compliance with the norms of Islam.
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The developers say that Caiz is synonymous with “Jaiz” in the Arabic language meaning permissible, confident, and legal. Other interpretations of the word “Jaiz” are acceptable, approved, sanctioned or admissible. CaizCoin vision is to build the blockchain structure of the future, for everyone to participate and improve their life. CaizCoin mission is to build a sustainable, inclusive and ethical blockchain to be the basis to an equal and transparent world.
Renowned for its excellence and innovation, Caiz is globally recognized with numerous accolades and awards. Its Islamic crypto and blockchain has bagged a number of prestigious and well-known awards from the Islamic banking and the finance sector.
CAIZ is bringing an excellent idea to cryptocurrency, which has been purged of all the financial discrepancies and is designed to provide a free and transparent payment solution. CAIZ’s alliance with ethical and moral norms makes it unique and trustable. The project is combining a futuristic financial system with the traditional philosophy of Islamic Finance, following the current trend of secure trading which has based its system on justice, truth, impartiality, and the welfare of all its investors and trusted partners.
CAIZ differentiates itself from other cryptocurrencies as its concept are built to satisfy the best interests of the investor and customer. While the primary focus lies with the customers’ needs, it accomplishes this by providing caring, personal, and transparent services through the concept of the cryptocurrency. The developer team have thoroughly examined the present crypto space and envisioned a free and a fair financial ecosystem in which investors can enjoy safe transactions without any controlling and centralized authority. Our concept has been planned thoughtfully and through our expertise it reaches its full potential for people who want to follow moral and ethical business practices using cutting-edge technology in the financial system.
Very good words and a very detailed model of the ecosystem. But there is one important note! There is not a word in the Cazcoin project’s WhitePaper about its compliance with the laws of Islam and Sharia. The project also does not have a Fatwa, which means that it is not possible to confirm the regulatory status in accordance with the sources of Islamic law based on the authority of people considering specific issues of compliance of CazCoin with the principles of Islam and Sharia. Can it be confirmed by the numerous awards received by the project? It is also a very big question!
CaizCoin is launched on Stellar blockchain is the fork of it. Stellar technology is similar to Ripple, which in fact is not blockchain at all, and very controvercial project, critisized by many serious crypto evengelist for being more centralized, than FED. This kind of “blockchain” is very straight and primitive, able only to make transactions. That is all. No smart contracts and EVM (Ethereum Virtal Machine) which is crucial for the modern crypto projects.
The developers say that Caizchain is the world’s first islamic blockchain working closely with islamic financial laws. A real world application with Caizcoin and bunch of other financial applications are in development phase. Looking at Cazcoin’ blockchain explorer you can see that there almost no transactions and the last one was made 7 months ago. Cazcoin’s blockchain doesn’t work?
Maybe you want to know who is standing behind this project? There is no info about the team on the official site.
But there are many pictures in Instagram account showing how good this team works.
The global monetary system has witnessed radical developments since the beginning of this century, manifested in the emergence of cryptocurrencies, with the launch of the decentralized cryptocurrency “Bitcion” for the first time in 2009, accompanied by the establishment of a system for recording and documenting information digitally in a chain of blocks that are impossible to penetrate.
This technology was called Blockchain, as it was considered a new revolution in the world of technology comparable to the Internet revolution at the end of the last century. Reliable cryptocurrencies emerged to realize the dream of financial independence away from the centralization of control adopted by banks and international systems. This financial decentralization is a foundation for personal freedom of individuals and institutions, a freedom with absolute transparency with systems, frameworks, principles and standards that take into account privacy and security. From this point of view, and in keeping up with the rapid technological development and the need for the Islamic world and Muslims around the world to engage in this technology and achieve financial independence in accordance with Islamic rules and values, ISLAMICOIN cryptocurrency was launched.
This project does not have its own blockchain, but is running on Polygon, which is ETH based sidechain.
Islamicoin platform is used to create many projects:
Media – ISLAMedia.tv
Metaverse – Virtual Islamic Tourism
Gaming – ISLAMIgame & Entertainment
Technology – ISLAMIBLOCKCHAIN ECOSYSTEM
Charity – BAIT AL MAL (House of Funds)
Quite an interesting project in which blockchain technologies are planned to be used not only to create a token and trade, but also to develop various entertainment and financial services.
The basis of Islamicoin is Polygon, formerly known as the Matic Network, is a scaling solution that aims to provide multiple tools to improve the speed and reduce the cost and complexities of transactions on blockchain networks. At the center of Polygon’s vision is Ethereum, a platform that is home to a range of decentralized applications, ones where you can join virtual worlds, play games, buy art, and participate in a range of financial services. However, this much activity on its blockchain has rendered Ethereum almost unusable, as the cost of transmission is rising and traffic is becoming clogged.
In a nutshell, Polygon bills itself as a layer-2 network, meaning it acts as an add-on layer to Ethereum that does not seek to change the original blockchain layer. Like its geometric namesake, Polygon has many sides, shapes, and uses and promises a simpler framework for building interconnected networks.
Polygon wants to help Ethereum expand in size, security, efficiency, and usefulness and seeks to spur developers to bring enticing products to market all the quicker.
Crypto Halal Office certifies that ISLAMICOIN project has taken into account the controls, standards and the sharia recommendations issued by Crypto Halal office for monitoring and Sharia auditing in all contracts and that the project is away from any forbidden Sharia violation. Crypto Halal will continue to audit ISLAMICOIN on quarterly basis to ensure continual compliance.
What is Crypto Halal Office?
An integrated project that aims to create a trading environment free of legal risks. Through various programs and projects, as well as educational content from experts in various fields.
Is it similar to Fatwa?
Absolutely, not. You can’t find Fatwa on ISLAMICOIN official site. You can find only an Audit Report. Can it be considered a substitute or an analogue of a fatwa? It’s a very big question.
The project team is represented (at least on the website) by only a few people. It is quite difficult to assess their experience in blockchain development, but at least we know who is working on the project.
The youngest in our review, but also the most promising project in the field of Islamic finance and blockchain. Islamic Coin is a native currency of Haqq, a community-run network, dedicated to empowering an ethics-first Shariah-compliant financial ecosystem. Islamic Coin has a finite total supply and 10% of each issuance is automatically dedicated for philanthropic purposes.
Our mission is to empower the world’s Muslim community with a financial instrument for the Digital Age, that enables seamless transactions and interaction, while supporting innovation and philanthropy.
Unlike other similar projects, IslamicCoin has a Fatwa and fully complies with Sharia law in the field of finance. IslamicCoin Project (ticker ISLM) www.islamiccoin.net seems today the most promising blockchain and crypto project for the Islamic world, being both Shariah copmliant and having recognizable Fetwa, and offering the most advanced technological stack, for building high loaded system for mass adoption. Find our our reviews of the team and the project in our previous articles:
Analysis of the Islamic Coin project and Whitepaper
Islamic Coin: top leaders of the Islamic finance world
IslamicCoin: True Shariah-compliant digital money
Haqq Blockchain — Haqq (Arabic for truth) is a Proof of Stake blockchain network compatible with the existing ecosystem of Blockchain tools and developer instruments (primarily, Ethereum and Cosmos) and meeting modern industry requirements, with fast-finality and high transactions troughtput. Haqq’s purpose is to serve the international Muslim community by providing a financial and technological tool that allows for independent financial interaction, while supporting technological evolution and philanthropy.
Islamic Coin — purposeful community crypto asset. It’s used as a native coin on the Haqq blockchain. Each time a new Islamic Coin is minted, 10% of the issued amount is deposited into a special. Evergreen DAO for further investment into projects beneficiary for Muslim community or given to Islamic charities. This is the first introduction of a coin bringing direct economic value to a community. The Evergreen DAO is a non-profit virtual foundation focused on long term sustainability and community impact. It effectively works as a crypto endowment. In some cases described below, Evergreen DAO also may fund activities necessary for the Haqq network evolution. Key decisions are made by a council that consists of Haqq network validators whose contribution to the network stability and security is the greatest.
Haqq Association is a Swiss based (non-profit) association. It is funded via donations. It brings together the most reputable actors of the Islamic world in order to promote the community driven decentralized technologies world wide. One of the most important functions of Haqq is to supervise further development of Haqq blockchain and make sure that development goes in accordance with principles of Islamic Finance. Such supervision is conducted by world’s renowned Shariah Scholars and Islamic Finance Professors, members of Haqq’s Shariah Board.
Proof of Stake mechanism allows Haqq holders to participate in the network consensus alongside Validators – and earn rewards for securing the network. Ethereum compatibility allows developers to build thousands of applications on Haqq using the existing Ethereum codebase and toolset, without rewriting smart contracts that already work on Ethereum or other Ethereum-compatible networks. IBC compatibility allows Haqq to interact with other IBC-compatible networks like Cosmos and Ethereum (via Cosmos Ethereum Bridge). High throughput with instant finality makes Haqq usable for applications beyond financial: social platforms, games, educational projects and much more. Shariah-compliant blockchain network and digital currency. The Fatwa is issued by some of the world’s most renowned and revered Shariah scholars. Evergreen DAO, funded by Haqq base token emission, and governed by network participants – dedicated to supporting innovative projects for the international Muslim community. Builders Incentive – Smart Contract authors are incentivized to deploy ecosystem-demanded contracts by network mechanics.
Executive Board consists of acclaimed award-winning banker with over 45 years of experience spanning the Islamic banking, finance and insurance sectors. Shariah Board presented by well-known Shariah scholar and serves on over 40 Shariah Advisory Boards including Standard Chartered, BNP Paribas, Al Rayan Bank, Abu Dhabi Islamic Bank.
Islamic Coin project has recently became the owner of a prestigious award in the field of digital finance – Gulf Excellence Award. The project has a Fatwa and the leaders of the Islamic financial market take part in the work on it.
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