HALAL Screening Cryptocurrency
Is Ethereum Classic ETC Halal?
Complete Shariah Compliance Screening of Ethereum Classic ETC to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Ethereum Classic ETC
Ethereum Classic (ETC) is a type of cryptocurrency that comes from the original Ethereum blockchain. Think of it like a digital version of money that you can use to buy things or invest in projects. What makes Ethereum Classic special is that it operates on a decentralized network, meaning no single person or company controls it. This allows for secure and transparent transactions, which is super cool because it helps prevent fraud and gives users more control over their own money.
What really sets Ethereum Classic apart is its commitment to the original principles of blockchain technology. After a major event in 2016, the Ethereum community decided to create a new version of the blockchain, but Ethereum Classic chose to stick with the original code. This means it values immutability, or the idea that once something is recorded on the blockchain, it should never be changed. So, if you’re looking for a cryptocurrency that holds onto its roots and emphasizes security and trust, Ethereum Classic is definitely worth checking out!
Transparent and Credible Team
The founders of the original Ethereum project are not directly involved with ETC, but that the team includes developers who supported the original Ethereum blockchain and opposed the hard fork. While the specific individuals are not named, our research indicates a clear continuity of development from the original Ethereum project, and a commitment to preserving its original form. This provides some credibility. Score: 60
Clear Use Case or Purpose
ETC aims to be a global payment network, a digital store of value, and a platform for smart contracts without centralised authority. These are legitimate uses cases. Score: 80
Absence of Fraudulent Behavior
The report emphasises the importance of auditing smart contracts, with the Ethereum Classic community actively enhancing smart contract security through internal auditing. While there isn't explicit mention of third-party audits of the entire project, the report does describe a formal process (ECIP 1052) where smart contract developers submit contracts for review, and auditors are rewarded for their work, with penalties for mistakes. This indicates a commitment to avoiding fraudulent behaviour. Score: 75
Ethical Practices
ETC's commitment to decentralisation, security, and immutability through the Proof of Work (PoW) consensus mechanism. It adheres to the "Code Is Law" philosophy, ensuring immutability. This demonstrates ethical development and operation. Score: 70
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Ethereum Classic ETC 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.
Ethereum Classic ETC 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
Ethereum Classic ETC 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 Ethereum Classic ETC Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Ethereum Classic ETC Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform