Is Arweave Halal: Is AR Halal?
What is Arweave?
Arweave is a blockweave data storage protocol building upon arweave technology. Arweave is developing a secondary network environment where data can be securely stored and accessible indefinitely via web pages and other interfaces that are accessible to humans (e.g., web browsers).
Arweave was founded in 2017 as Archain, and the company changed to Arweave in 2018 while participating in the Techstars Berlin mentorship program. Arweave aspires to introduce permanent, affordable storage with Arweave, a decentralized block-based data structure known as a blockweave.
In November of 2019, Arweave obtained a $5 million funding round from a number of venture capital firms in exchange for $5 in Arweave tokens. Six months later, the Arweave team raised another $8.3 million in exchange for AR tokens. However, after this round, the company stated that it would use the additional funds to incentivize community adoption and growth.
Further details can be found on Arweave website.
Who Invests In Arweave?
Arrington XRP Capital
One Block Capital
Union Square Ventures
Is Arweave Halal: Is AR Halal? We’d Love to Hear Your Thoughts
Sharing the collective wisdom of thousands of Muslim crypto traders and investors.
Blockweave and Proof of Access – A blockweave protocol combines a new data structure called a blockweave and a new consensus mechanism known as Proof of Access (PoA). Most likely, the blockweave protocol has a block-oriented structure in which each block is linked to two of its blocks (previous and recall).
Arweave uses a decentralized data exchange method called wildfire. Nodes that have big problems with speed are excluded from Arweave. The advantage is incentivizing good behavior.
Arweave incorporates another data storage platform called blockshadows, a process in which digital assets are created partially insteps of blocks as opposed to various parts of blocks that are no more than a set number of blocks (the shadow).
Lastly, Arweave’s permaweb, joins Arweave’s data storage layer. The permaweb is the humans-readable storage layer that comprises of a collection of documents and apps in Arweave that are stored permanently.
Legitimacy Screening of Arweave
Arweave has had the investment support from some of the biggest names in the Venture Capital world, having been incubated within Techstars.
The technology described above also gives us the confidence to confirm that Arweave has an underlying fundamental value, that can be considered as “Mal” under Islamic rulings. Therefore, as a project it has legitimacy in terms of Shariah.
Is Arweave project aligned with Islamic values?
Yes, Arweave project does align with Islamic values so there are no concerns, in terms of its project screening. The goal of the project is to create a web based data storage protocol.
Financial Screening of Arweave:
Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. Techstars typically owns single digit percentage of everything it incubates, but its not debt related or loan based so Arweave has no issue passing financial screening for its project.
AR Token Screening for Shariah Compliance
Users can obtain AR tokens so they can upload information to the Arweave network where it can be retrieved via web browsers on Arweave’s permaweb. Users are obligated to pay the cost that Arweave believes is sufficient to store the knowledge eternally. To learn more about how to save a web page please visit Arweave’s documentation.
Based on this type of use the token could be considered halal.
Is Staking Arweave Halal?
In contrast to staking, Arweave’s proof of access has two similar components with proof of work. All computers in the network ensure that all transactions are accurate and that there have been no changes to existing ones. Income comes in the form of fees for each transaction.
There is no staking at the moent but if follows the use described above then staking Arweave would be Halal.
What Does The Muslim Crypto Community Think of Arweave?
Sharlife considers Arweave as a halal cryptocurrency based on the five areas assessed for Shariah complaince screening.
Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks Arweave is a Halal digital asset based on its Shariah complaince screening.
If you know of other academic or scholarly views on this, please add in comments and we will update accordingly. Alternatively, you may want to join our community of Muslims crypto investors and traders, to share, learn and profit from halal digital assets.
Is Arweave Halal: Is AR Coin Halal?
Yes, this project is compliant with Shariah guidelines so we beleive Arweave is a Halal cryptocurrency. Arweave is a protocol that enables data storage, on its networks, the functions of which are also compliant. The feature worth noting is the Profit Share Token, which allows token holders to capitalize on business or startup they’re working with. Musyarakah based contracts could be considered here, so also not an issue for the time being and Muslims can comfortably invest in AR.
We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.