Blockchain Papers

Sharif M. Abu Karsh, Louy Badarin

No abstract is available for this record.

Tasnim Khalid, Mujeeb Saif Mohsen Al-Absy, Mohammad Omar Farooq

No abstract is available for this record.

Mikołaj Barczentewicz, Natasha Vasan

No abstract is available for this record.

Muhammad Iqbal Birjaman, Shofi Arofatul Marits, Sebastián Herman

Islamic economics focuses on realizing Islamic ideals, rahmatan lil 'alamin, which aims to provide goodness, prosperity and well-being. Halal (Positive) and haram (negative) aspects in the realm of cryptocurrency. Based on an extensive review of 23 relevant journals, this research aims to analyze the literature and explore the implications of cryptocurrency in relation to Islamic principles. This research focuses on key variables such as compliance with Sharia, riba (usury), gharar (uncertainty), and transparency. By reviewing existing literature and considering the perspective of Islamic scholars and law, this paper aims to determine whether cryptocurrency is permitted or prohibited from an Islamic perspective. These findings will contribute to the ongoing discourse around the compatibility of cryptocurrencies with Islamic finance and ethics. This study emphasizes the importance of addressing halal and haram issues and implications in the cryptocurrency ecosystem. Ultimately, this research aims to provide insights and recommendations for scholars and practitioners in the field of Islamic finance and cryptocurrency.

Daniel Liebau

No abstract is available for this record.

Mamadou Dosso, PK Senyo, Ishmael Tingbani

Applying Decentralized Autonomous Organizations (DAOs), a participative-based technology in the charity sector, enables donors to manage donations collectively, vote, and release donations when conditions are met. This approach empowers donors’ decision-making and improves transparency. This systematic literature review (SLR) assesses the integration of DAO as a new way of managing charity projects through decentralized governance and smart contracts (SCs). Our analysis covered 29 studies in the literature, from which we identified key dimensions and top-level functions constituting the state-of-art in integrating DAO in charity organizations. Our review reveals the potential of DAO in improving charity organization practices and decisions by way of utilizing SCs that create dynamic control environments. The review develops a step-by-step decentralized charity governance project (DCGP) model to automate donations and improve transparency.

Samuel Musungwini, Samuel Simbarashe Furusa

No abstract is available for this record.

Zulfikar Hasan, Bobby Syuhada, Nur Indira

The term "cryptocurrency" refers to a form of digital or virtual currency that does not exist in tangible form like paper money. That cryptocurrency can only be used with internet-connected PCs, laptops, smartphones, and other devices. Cryptosystems that make use of the blockchain system have a number of advantages, including the speed, convenience, and security of transactions, as well as the ability to be used in all nations and continents. However, there is still room for improvement in the circulating cryptocurrency, including the absence of supervisory authorities. Experts, including Islamic scholars, are constantly debating the advantages and disadvantages of using cryptocurrencies. The Koran, al-Hadith, Qiyas, and Sad-Adzariyah are the sources used in this study to examine the dynamics of cryptocurrency use from the perspective of ushul fiqh. Increasingly, cryptocurrency transactions are used for speculation, which violates Islamic principles. According to Surah Al-Qur'an An-Nisa verse 29, the elements of superiority are gharar and maysir, so the use of cryptocurrencies is permitted subject to certain conditions. Additionally, a country's legality must be clear for cryptocurrency to be used safely.

Faizi Faizi

This paper critically examines the Indonesian Ulema Council's fatwā which prohibits cryptocurrency. The critique focuses on three aspects of the ban. The first is criticism for banning cryptocurrency which is considered to contain garar and ḍarār, and is contrary to Law No. 7 of 2011 and Bank Indonesia Regulation No. 17 of 2015. The second is criticism of the illegality of buying/selling cryptocurrency, which is positioned as a digital asset/commodity that contains garar, ḍarār, qimār, and does not meet the sil’ah criteria. The third is criticism of the permissibility of cryptocurrency as a commodity/asset when it fulfills the sil’aḥ criteria and has underlying and clear legal benefits to be traded. This study adopted a qualitative approach. The conclusion reveals that MUI's fatwā on cryptocurrencies was not built on solid legal reasoning and did not consider the benefits of technological advances. The MUI's fatwā is based on the principles of Islamic law, specifically garar, ḍarār, and qimār, which are used to evaluate the legality of trading commodities or digital assets, such as cryptocurrencies. However, it is important to note that the MUI's fatwā does not consider the potential benefits of cryptocurrencies, such as their use as a new form of investment and their potential to revolutionize industries by enhancing security, and efficiency, and creating new trading opportunities in the digital age. In terms of non-Sharia technology, it is seen as a tool that can be used for good or evil, and its permissibility depends on its use. Blockchain technology, which underpins cryptocurrencies, is considered acceptable because it makes transactions more secure and enables the use of smart contracts.

Shinta Dewi, Ita Rodiah

ABSTRACTCryptocurrency has emerged as a significant phenomenon in the world of finance and technology. Along with its popularity, there have been debates and controversies regarding the use of cryptocurrency as a form of wealth and currency for zakat payment. Zakat in Islam os an obligation for every Muslim who financially capable, to give a portion of their wealth to those in need. However, the fluaction value of cryptocureency has sparked discussion on its feasibility for zakat payment. The objective of this paper is to explore the use of cryptocurrency as a means of zakat payment from the perspective of islamic law.Keywords : cryptocurrency, zakat, islamic law ABSTRAKCryptocurrency telah menjadi fenomena yang signifikan dalam dunia keuangan dan teknologi. Seiring dengan popularitasnya, muncul pro dan kontra terhadap penggunaan cryptocurrency sebagai harta dan mata uang yang dapat digunakan sebagai alat pembayaran zakat. Zakat dalam islam merupakan kewajiban bagi setiap muslim yang mampu memberikan sebagaian dari kekayaan kepada orang-orang yang membutuhkan. Namun, nilai cryptocurrrency yang fluaktif memicu perdebatan. Tujuan dalam makalah ini untuk mengetahui penggunaan cryptocurrency sebagai alat pembayaran dari sudut pandang hukum islam.Kata Kunci: cryptocurrency, zakat, hukum islam

Amelia Nur Natasha Binti Nazeri, Shifa Mohd Nor, Aisyah Abdul-Rahman, Mariani Abdul-Majid · 5 authors

Purpose — This paper aims to examine the implementation of blockchain technology in zakat management and determine how it will work in the context of Malaysia. Although zakat institutions in Malaysia use technology, confidence in the efficiency of the zakat fund is still an ongoing issue. Therefore, the potential of blockchain technology for improving the zakat management system is examined. Design/Methodology/Approach — An exploratory study involving two informants with expertise in blockchain technology and Islamic finance was conducted to investigate how the application of blockchain in the zakat management system will accelerate the future implementation and potential of zakat management in Malaysia. Findings — This research finds an accord between the features of blockchain technology and the objectives of zakat. The features are transparency, traceability and security, which align closely with the goals of zakat. As such, a new model has been proposed for the zakat management system, one empowered by blockchain technology that harmonises with the existing system and enhances these elements. Originality/Value — This research can motivate zakat institutions in Malaysia to implement blockchain technology in their zakat management systems by using the proposed model. The research shows the synchronisation of blockchain principles with zakat, which would build trust and confidence. Practical Implications — The discussion on how blockchain can be embedded in the existing zakat management system will contribute towards enhancing zakat management in Malaysia and improve the performance of zakat institutions, enabling them to better serve the community. Given the scarce literature on blockchain adoption in zakat management, this study can spur further research and discussion within this area.

Shahnawaz Khan

Zakat is one of the five mandatory pillars of Islam. It plays a vital role in addressing the social issues such as wealth inequality and supporting the less fortunate. Any Muslim whose wealth and assets exceeds the Nisab value must pay zakat. However, unlike taxes, zakat is not collected by government or authorities. Therefore, every eligible individual is responsible for its calculation and distribution independently. Hence, there are several issues and challenges associated with its collection and distribution, especially in non-Islamic countries. This research paper proposes a blockchain-based online platform for zakat collection and distribution, addressing these challenges. Blockchain can help to ensure that zakat funds are distributed to beneficiaries in an efficient manner. The system allows zakat payers to select and allocate funds to the verified beneficiaries while ensuring Sharia compliance. The proposed system uses a blockchain ledger to enhances transparency, and accountability. It minimizes the associated collection and distribution costs by removing intermediaries. This research aims to contribute to the efficient and secure management of zakat funds, promoting social justice, and responsible zakat practices in the Muslim community.

Nguyen Duc Duong

The significant growth of cryptocurrencies since the emergence of Bitcoin in 2009 has sparked debates in society about the potential replacement of conventional currencies by cryptocurrencies. While cryptocurrencies offer technological advantages, their unique characteristics also pose limitations and challenges. This research aims to present the advantages of cryptocurrencies, their relationship with traditional currencies, and the challenges they pose to the existing financial system. It provides policymakers with valuable information to formulate policies for dealing with cryptocurrencies in the future. Keywords: Cryptocurrency, Financial System, Monetary Policy.

Aprilia Candra Purnama Wati, Muhammad Yazid

This research explores the potential impact of blockchain technology on fincancial transactions in Islamic banking, addressing challenges related to security, transparency, and efficiency. Employing a multifaceted approach, the study assesses the benefits of blockchain in Islamic finance through literature reviews and empirical investigations. Notably, blockchain enhances the security of financial transactions by leveraging robust cryptocurrency and decentralized consensus mechanisms, thereby mitigating fraud and manipulation risks. Additionally, blockchain facilitates currency exchange, a critical aspect of Islamic banking, ensuring transparency and adherence to Sharia standards. The research identifies increased efficiency in Sharia banking operations as a key advantage of blockchain technology, attributing it to the automated processes that reduce organizational costs and transaction processing times. Furthermore, blockchain enables more streamlined cross-border transactions, reduces reliance on external entities, and enhances market liquidity. Despite these benefits, the study emphasizes certain challenges in implementing blockchain in Islamic banking, such as the need for youth education, establishing a robust infrastructure, and gaining community trust in new technologies. Successful integration requires collaboration among Sharia banking organizations, regulators, and stakeholders, with clear guidelines and a deep understanding of blockchain innovation. Overcoming these challenges is crucial for unlocking the full potential of blockchain in enhancing the security, transparency, and efficiency of monetary transactions within Islamic finance.

Kumara Adji Kusuma, P. Sheela, Rashmi Ranjan Panigrahi, Zakir Hossen Shaikh

Financial technology (FinTech) has emerged as the application of innovative and disruptive technologies to provide financial services, gaining significant prominence in the late 2010s. The genesis of FinTech can be traced back to the global financial crisis of 2008, which necessitated a re-evaluation of traditional financial systems. Islamic financial systems emerged as a resilient response to this crisis, offering alternative solutions. This chapter embarks on a comprehensive review of academic research in the domain of Islamic financial technology, with a particular focus on the integration of blockchain management. Forecasts indicate that global cumulative investments in FinTech are poised to surpass $1.5 trillion over the next 3-5 years. Concurrently, the conventional banking and finance industry faces a notable dearth of innovation, presenting formidable challenges to banks and financial institutions worldwide. This study aims to address this innovation gap by investigating the potential of blockchain technology to revolutionize Islamic finance.

Amna Kanwal, Muhammad Tayyab, Sadia Idrees

Financial technology and continuous digital growth are having an influence on financial inclusion which has significant ramifications for the faith-based financial paradigm. The objective of this research is to investigate the relationships and effects of financial technologies in Islamic financing inside financial institutions within the framework of digital transformation and blockchain technology. The use of these advancements will significantly affect Sharia-compliant Islamic finance. This paper critically investigates the historical and current implications of Financial Technologies, financial inclusion, and Blockchain in Islamic Finance worldwide with a focus on banking, investing, and compliance with regulations. Using a comprehensive review of the literature, indexing journals, and empirical case studies, this research seeks to provide significant new insights on the development and status of several areas within the Islamic financial industry. In order to make Sharia compatible, it also examines how digitalization has altered the landscape. Furthermore, before they can considerably promote financial inclusion in many countries, the Islamic financial services industry and the junction of technology and Islamic finance still have a ways to go due to the scale necessary. The study's findings may serve as a guide for financial institutions, decision-makers, and other interested parties in order to maximise the potential of blockchain technology and other financial innovations in Islamic finance across a range of Islamic nations. Long-term, equitable economic growth will result from this.

Khafid Abadi, Ahmad Taufiq, Rizka Roikhana

The purpose of this research is to determine whether or not cryptocurrencies are legitimate in Islam as both a currency and a commodity. This is research done in a library. The research is descriptive-analytical and uses Jasser Auda's Islamic legal philosophy approach to try to explain cryptocurrency law. The findings demonstrate that, from the standpoint of Islamic legal philosophy, the law governing cryptocurrency as a currency is comprehensive (tafsil). Whether it is halal or not by looking at how the goal was achieved, specifically (benefit). If the cryptocurrency has clear benefits, such as the existence of underlying assets and the government's role in realizing the general benefit (maslahah ammah), it can be considered halal. Similarly, cryptocurrencies that lack clear regulations and are not backed by assets will be haram due to the possibility of mafsadat. Despite the fact that cryptocurrencies are regarded as al-Ma'l al-ma'nawiyyah because they do not conform to the objectives of sharia in assets (maqashid as-shari'ah fi al- mal), the law of cryptocurrencies as assets (crypto assets) is not valid. This research certainly has limitations, especially related to field data, namely interviews with cryptocurrency business actors. Therefore, to develop further research, not only juridical research but also juridical-empirical research.

Sıtı Sara Ibrahim

Waqf development in Malaysia benefits the economy and society, mostly in terms of facilities, education, investment, and others. Due to the massive development of the waqf industry, digitalization is deemed as a facilitative instrument in the operation of waqf. With the usage of digital platforms, the collection of waqf funds becomes more efficient and widely dispersed among Muslims. In this context, blockchain has become a new phenomenon, functioning as a ground-breaking innovation connected to bitcoin. The core idea behind a blockchain is that its users can access the ledger independently of a third party. Additionally, the blockchain counts all network nodes equally, taking human and computer communication into account without any special treatment or discrimination. Without realizing it, several waqf institutions have already applied this approach using their own platform. Therefore, this study aims to systematically review the potential application of blockchain in waqf institutions by referring to previous applications in other countries in the Middle East and Asia such as Oman, Bahrain, United Arab Emirates, Singapore, Indonesia, and Malaysia. Methodology wise, this paper employs the Systematic Literature Review which consists of the processes of identification in evaluation of the data from September 2022 until October 2022 by using related keywords to study. Secondly, is screening process which entails the process of choosing articles based on inclusion and exclusion criteria. This study screened all the 49 selected articles by choosing the criteria for articles selection which is done automatically based on the sorting function available in the database. Thirdly, eligibility which the authors manually monitored the retrieved articles to ensure all the remaining articles (after the screening process) are in line with the criteria. Lastly, the quality appraisal which to ensure that the substance of the articles was of high quality. The findings are important for waqf institutions to realize the potential benefit of blockchain in improving the efficiency of waqf operations towards attaining sustainable socio-economic development.

Muflih Adi Laksono, Ai Netty Sumidartini

One of the technological advances found in the economic field is the emergence of crypto currency or also known as cryptocurrency, one type of which is ethereum. The progressivity of these transactions makes transaction activities more efficient because they can be applied virtually. When viewed in terms of profit obtained, ethereum can provide significant returns, but on the other hand also has a very high potential risk in terms of investment. The extreme volatility of ethereum digital transactions allows for spikes in price increases and decreases very quickly. The high volatility in question is a reflection of the level of risk faced by investors. This research was conducted to review the essentiality of ethereum digital transactions in the perspective of Islamic economics, because these transactions are still experiencing debate both in terms of legality and regulation, especially from the perspective of Islamic economics.

R. A. Tugushev

This paper provides a brief explanation of the block chain and the concept of “crypto currency”, followed by an analysis of Bitcoin for permissibility from the point of view of Shari‘ah. The decisions of well-known houses of fatwas were considered, and a number of criteria were developed and adopted with the help of which the Shari‘ah position of a particular crypto currency can be assessed. The article identifi es provisions and decisions that can become the basis for issuing fatwas related to issues that concern many Muslims who care about the permissibility of their earnings.

В. С. Петренко, Алла Карнаушенко, Kateryna Melnykova

In today's world, the finance and investment sector is becoming increasingly dynamic and diverse.One of the key trends is the growing interest in alternative sources of financing, which provide businesses and individual investors with new opportunities to obtain and provide financial support.This article provides a detailed analysis of alternative sources of financing, including crowdfunding, venture capital and cryptocurrency initial public offerings (ICO).It also discusses the role and importance of alternative sources of financing in modern business and the impact of technological innovations on this sector.Alternative sources of finance encompass a wide range of financial instruments and platforms that allow businesses and individuals to raise and invest funds outside of traditional banking and financial institutions.One of the most popular categories is crowdfunding, which requires raising funds from a large number of individual investors through an online platform.Another important category is venture capital, which has evolved into investing in start-ups and innovative businesses with high risk but significant return potential.ICOs are another aspect of alternative sources of funding that is proving popular.This method allows startups and projects to raise funds by issuing cryptocurrency tokens.The article compares the categories of alternative sources of financing and identifies crowdfunding, venture capital and ICO as three key categories of alternative sources of financing with their unique features and advantages.Crowdfunding allows mass investors to invest in various projects, venture capital business is aimed at supporting innovations and start-ups, and ICO allows issuing tokens to raise funds.The impact of the development of Internet technologies and blockchain, which have changed the landscape of alternative finance, is also identified.Online platforms and distributed ledgers can create secure and accessible channels for attracting investment.This makes alternative sources of finance more attractive to investors and businesses.Technological innovations are also helping to improve risk assessment and credit scoring processes, making alternative finance more predictable and efficient.

Asif Zaman, Issam Tlemsani, Robin Matthews, Mohamed Ashmel Mohamed Hashim

Purpose The rapid rise of Islamic crypto assets, underpinned by blockchain technology, has introduced a novel dimension to the Islamic financial landscape, raising questions about their potential as safe havens within emerging Islamic economies. However, the opportunities and challenges associated with this phenomenon remain insufficiently explored. In this context, this study aims to empirically investigate the extent to which blockchain technology can establish Islamic crypto assets as safe havens in equity markets within Islamic economies. Design/methodology/approach This study addresses the need for rigorous empirical analysis to understand the dynamics between Islamic crypto assets and stock markets in emerging Islamic economies, focusing on the transmission of volatility. While the evolving nature of the Islamic financial sector demands reliable data, the reliance on the most available data offers insights into the expected future trends in this emerging field. The research specifically focuses on three essential assets in the Islamic financial portfolio: OneGram Coin and X8XToken, both backed by gold and MRHB DeFi, an Islamic DeFi asset lacking gold backing. These crypto assets are compared with corresponding assets in seven stock markets of emerging Islamic economies. Using daily log returns of the Islamic crypto assets from various sources and seven Islamic stock indices. The data covers the period from December 27, 2021, to December 28, 2022, capturing the fluctuations in Islamic stocks and cryptocurrency markets during the post-COVID-19 era. This research uses advanced econometric techniques, including pairwise dynamic correlation and the DCC GARCH model. Findings The findings indicate that Islamic crypto assets exhibit distinct characteristics, with lower volatility and low correlations compared to their conventional counterparts in non-Islamic contexts. This outcome suggests that these Islamic crypto assets could potentially serve as safe havens within Islamic stock markets, offering valuable insights for various stakeholders, including investors, governments and policymakers. Research limitations/implications The findings are based on a specific set of Islamic crypto assets and may vary with a different selection. Market dynamics can also influence the relationships observed. Nevertheless, the outcomes provide valuable insights for investors, policymakers and researchers interested in the intersection of Islamic finance, cryptocurrency and technology. Originality/value In essence, this research not only unveils the potential of Islamic crypto assets as stabilizing forces but also delineates a trajectory for subsequent research endeavours within the realm of emerging Islamic Fintech, elucidating the challenges, opportunities and benefits that lie therein. With a discerning eye on circumventing the pitfalls entrenched within conventional crypto finance, this study contributes to a heightened comprehension of the transformative role that Islamic crypto assets can assume, ultimately enriching the financial resilience of Islamic economies.

Tulus Budi Santoso, Akhmad Kusuma

Zakat and waqf funds in the global scope are equivalent to 1% of the total GDP in the world. However, the usage of zakat and waqf funds is still not optimal. Blockchain could be used to supervise the management of the waqf and zakat. This study has a purpose for the topic development of previous studies related to the usage of blockchain for zakat and waqf management globally. This study used the bibliometric method to gather and analyze the secondary data. The data were collected from the Web of Science (SCI) website from 1979-2023. There were 415 metadata documents found and would be analyzed using R Studio software. The result showed that the majority of the total documents as in previous studies were article type. The co-authorship per paper was 23.13% from 415 documents. The affiliation countries of the authors with the biggest papers were Indonesia and Malaysia. They were also the two words that were most frequently used both in the abstract and in the title of the previous studies.

Muhammad Nazir Alias, Wan Kamal Mujani, Nursyahidah Alias, Azyati Azhani Mohamad Mazuki · 9 authors

At present, there is a notable divergence in viewpoints among Islamic scholars pertaining to the legality of Bitcoin transactions. A subset of these scholars categorically prohibits its use, while another endorses it. This disparity has precipitated confusion within the Muslim community, thereby complicating the task of adopting one stance over the other. The primary aim of this study is to meticulously examine and analyze the arguments presented by both subsets, with the objective of shedding light on the underlying causes of this divergence of viewpoints. To achieve this, the study utilizes a blend of descriptive and inductive analytical methodologies. The findings indicate that the scholars who prohibit Bitcoin largely base their arguments on external factors, with a minority of objections directly related to the inherent attributes of Bitcoin itself. In contrast, the subset that endorses the use of Bitcoin tends to focus on the intrinsic system of Bitcoin, often minimizing the importance of external factors. However, even the endorsers of Bitcoin acknowledge that current Bitcoin transactions are not without risks. They suggest that these risks should be addressed by the appropriate authorities through the implementation of effective preventive measures