HALAL Screening Cryptocurrency
Is Cosmos Halal?
Complete Shariah Compliance Screening of Cosmos to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Cosmos
ATOM is the native cryptocurrency of the Cosmos network, which is like a big hub connecting different blockchains. Imagine it as a bridge that allows various cryptocurrencies to communicate and work together seamlessly. This is super important because, in the crypto world, many projects operate in isolation, making it hard for them to share information or value. Cosmos aims to solve this problem by enabling these different blockchains to interact, which can lead to more efficient transactions and innovative applications.
What makes ATOM unique is its focus on scalability and interoperability. While many blockchains can get bogged down with traffic, Cosmos uses a special technology called the Tendermint consensus algorithm, which helps it process transactions quickly and securely. Plus, it allows developers to create their own blockchains that can easily connect to the Cosmos network. This flexibility and speed make ATOM an exciting player in the crypto space, as it opens up a world of possibilities for collaboration and growth among different blockchain projects!
Transparent and Credible Team
The report identifies the co-founders, Ethan Buchman and Jae Kwon, detailing their experience and roles within the project. This suggests a transparent team with credible history, scoring a 85
Clear Use Case or Purpose
The whitepaper, along with other documentation, clearly articulates Cosmos' purpose as an "Internet of Blockchains" that aims to solve scalability and interoperability issues, allowing different blockchains to communicate and interact seamlessly. This demonstrates a clear and legitimate use case. Score: 90
Absence of Fraudulent Behavior
The project has undergone multiple third-party audits by firms like HashEx, CQR Company, and Trail of Bits. These audits aim to ensure the security and reliability of the platform and its smart contracts. Additionally, there are active bug bounty programs and internal audits, further strengthening the legitimacy. There is no mention of any fraudulent behavior so the score is 90
Ethical Practices
The project emphasizes community-led governance, transparency in its development process, and has a well-defined governance mechanism. The staking mechanism incentivizes honest behavior and maintains network security. However, there are some community governance challenges related to disagreements with Jae Kwon. So a score of 80
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Cosmos Halal Project Screening
- Are the project’s purpose and operation Shariah Compliant.
- Does the project operate ethically and transparently, without harm to society.
- Does the project promote positive societal or environmental outcomes.
Cosmos Financial Screening
- Does the revenue involve Riba (interest), Gharar (excessive uncertainty), or Haram activities.
- What red flags are hidden within the projects finances and are within permissible limits.
- Types of revenue generation activities and the percentage that may be Riba or interest based.
- Audits from reliable sources
Cosmos Token Screening
- Is the Token governance fair and ethical?
- Are profit-sharing mechanisms (e.g., staking rewards, dividends) compliant with Islamic Finance?
- Does the token’s design, or unlock schedule raise unethical concerns?
- Halal underlying asset, and free from impermissible elements
Is Staking Cosmos Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Cosmos Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform