HALAL Screening Cryptocurrency
Is FLOW Halal?
Complete Shariah Compliance Screening of FLOW to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is FLOW
FLOW is a cryptocurrency designed specifically for the world of digital assets and decentralized applications, especially in gaming and entertainment. It powers platforms like NBA Top Shot, where fans can buy, sell, and trade officially licensed digital collectibles. What makes FLOW unique is its ability to handle a high volume of transactions quickly and efficiently, which is crucial for applications that require fast interactions, like gaming or live events.
Unlike many other cryptocurrencies that can get bogged down with slow processing times, FLOW uses a special technology called "proof of stake" that allows it to scale easily without sacrificing security. This means more people can use it at the same time without delays, making it super user-friendly. Plus, FLOW is built to be accessible for developers, so they can create exciting new experiences without getting stuck in complicated tech hurdles. It’s all about making digital interactions smoother and more enjoyable!
Transparent and Credible Team
Our research identifies key individuals behind the FLOW cryptocurrency, primarily associated with Dapper Labs, including Roham Gharegozlou, Layne Lafrance and Dieter Shirley. Their backgrounds and roles in developing the Flow blockchain and CryptoKitties are detailed, indicating a transparent team with a credible history. Score: 85
Clear Use Case or Purpose
The whitepaper clearly explains FLOW’s purpose as a platform designed to address scalability issues and support large-scale applications, particularly in gaming and digital assets, without sacrificing decentralisation. This demonstrates a clear and legitimate use case. Score: 90
Absence of Fraudulent Behavior
The report highlights third-party audits by Quantstamp and ShellBoxes, which have reviewed Flow’s core smart contracts and Cadence, its smart contract language. The report also describes the blockchain verification process using blockchain explorers. These audits and verification tools suggest an absence of fraudulent behaviour. Score: 85
Ethical Practices
The project emphasises transparency with detailed documentation, third-party audits, and a focus on community engagement. The focus on scalability and a user-friendly approach suggests an ethical approach to development and operation.. Score: 85
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FLOW 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.
FLOW 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
FLOW 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 FLOW Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
FLOW Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform