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Shariah Oracle – A Blockchain-Based Record of Halal Certification

The Shariah Oracle is a blockchain-based record that maintains Halal Certification. Functioning as a blockchain-enabled mechanism, it controls a list of approved smart contracts, allowing them to interact (by signing and listing in the in-app marketplace) through the HAQQ Wallet. The Shariah Oracle ensures that users interact solely with approved, Sharia-compliant dApps, while also offering a platform for smart contract developers and traditional web businesses to establish their ethical standing among Muslim users by featuring their products and services on the HAQQ Wallet.

Comprehending Oracles and Their Significance

Smart contracts are a crucial element of decentralized applications (dApps), permitting automated execution without intermediaries. However, they can’t access data from external sources, resulting in a separation between the blockchain and off-chain environments. To overcome this, oracles like the Shariah Oracle fetch and harmonize data from different sources, making it available to smart contracts. Various methods are employed for data retrieval, including:

  • API Calls: An Oracle can pull data from external APIs, like those providing weather information, market data, or social media data.
  • Distributed Ledger Oracles: An Oracle can access data from other blockchain networks, like Bitcoin or Ethereum.
  • Consensus-Based Oracles: Oracles can pull data from a variety of sources and use consensus algorithms to verify data accuracy. This ensures the data fed to smart contracts is reliable.
  • Trusted Data Sources: Oracles can gather data from trusted data sources, like feeds provided by reputable companies or organizations.

The Purpose of the Shariah Oracle Halal Certification

The Shariah Oracle plays a key role in reducing unethical or Haram activity within the HAQQ network. By integrating the Shariah Oracle with the HAQQ Wallet, users have access only to whitelisted, Sharia-compliant dApps. This feature allows developers to highlight their ethical relevance to Muslim users and to feature their offerings on the HAQQ Wallet, thereby enhancing their adoption and success potential.

The Functioning of the Shariah Oracle

The Shariah Oracle utilizes a dual-approval system: Community approval and Shariah board approval. Community approval comes from ISLM stakers, permitting the project to be featured in the HAQQ Wallet Marketplace. The Shariah Board provides Shariah Approval, allowing projects to receive a Shariah Compliant tag in the marketplace. The Shariah Oracle also has a feature that warns users when they attempt to sign a transaction on contracts not approved by the community, reinforcing the security of the HAQQ Network.

Decentralization in the Shariah Oracle

Despite the inclusion of Shariah Compliance, the HAQQ Network does not compromise on decentralization. The Shariah Oracle only influences the behavior of the HAQQ Wallet and does not affect any other aspect of the HAQQ network or Layer 1. Consequently, users not concerned about Shariah compliance can still engage with any smart contract deployed on the HAQQ Network via Metamask or any other EVM-compatible wallet.

Value Proposition of the Shariah Oracle

The Shariah Oracle brings a unique value proposition by guaranteeing that all smart contracts interacting with the HAQQ Wallet comply with Shariah, hence abiding by Islamic principles and ethics. This feature is beneficial for Muslim users and ESG-focused investors who emphasize ethical investment practices. It also aids in preventing typical front-end attacks, thereby boosting the security of the HAQQ Network.

Technical Design of the Shariah Oracle

The Shariah Oracle functions through a sequential process involving both community and Shariah Board approval stages. Ranging from proposal submission, voting, and whitelisting (or SBT issuance) to Shariah Board approval and potential revocation of approval, the procedure is constructed to be open, secure, and efficient.

Process of Community Approval:

  • Proposal submission: An $ISLM staker puts forward a proposal for community approval using the gov module.
  • Deposit: To deter spam, a minimum deposit is required when submitting proposals.
  • Vote: Participants from the community vote on the proposed plan.
  • Whitelist (SBT issuance): Post-approval, SBT is granted to a smart contract.
Blockchain-based Halal Certification

Process of Shariah Approval:

  • Proposal submission: A holder of SBT tokens can submit a proposal for Shariah approval, but only for a smart contract that the community has approved.
  • Deposit: Proposals are submitted, serving as non-refundable audit fees for the board or authorized auditors.
  • Shariah Board approval: Following community approval of a smart contract, the Shariah Board conducts an audit and provides feedback. The project team applies this feedback, after which the board carries out a final review, either approving or rejecting the smart contract for Shariah compliance. This process doesn’t require a community vote.
Blockchain-based Halal Certification

Revocation of Shariah approval:

If a project that has been marked as Shariah-compliant deviates from the given guidelines, it gets flagged and given a grace period of three to six months to rectify the issues. During this period, any HAQQ community member interacting with the concerned contract will receive a warning notification about the project’s non-approved status. If the grace period concludes without the necessary rectifications from the project, the HAQQ Network implements restrictions, preventing HAQQ wallet users from accessing such contracts only if the user has set Shariah approval as his preference. However, these contracts can still be interacted with via Metamask or any other EVM-compatible wallet.

Upcoming Developments

In the future, the Shariah Oracle aims to improve its processes by incorporating authorized Shariah auditors. This objective intends to make the audit process more streamlined, foster decentralization, and prevent bottlenecks. The Shariah Oracle is scheduled to launch in Q3 2023.


The Shariah Oracle represents an innovative fusion of blockchain technology, Islamic values, and ethical investment standards. It guarantees that only Shariah-compliant dApps are accessible through the HAQQ Wallet, thereby providing ethical compliance in the rapidly advancing digital finance landscape. Its unique dual-approval system bridges technology and tradition, strengthening the network’s security while maintaining decentralization, a fundamental aspect of blockchain systems.

Looking forward, the integration of authorized Shariah auditors will further simplify the compliance process, fostering a resilient, inclusive, and regulated ecosystem. Set to launch in Q3 2023, the Shariah Oracle stands as a substantial landmark at the crossroads of contemporary finance and faith-based ethics, paving the way for a fairer and more sustainable financial future.

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