Is Chromia Halal: Is CHR Halal?

What is Chromia CHR?

Chromia is a Layer-1 blockchain on EVM compatible with Layer-2 set up on the Ethereum and Binance Smart Chain Blockchains. It is designed to operate at three levels: to allow large-scale dApps to scale to millions of people, to match those of conventional dApps in their user experiences, and create familiar conventions for app development.

ChromaWay was founded in 2014 by three Swedish programmers, who set up the globe’s first business-specific blockchain, called Postchain, in 2014. Postchain is a database software solution for businesses that can be implemented by a SQL programmer.

Further details on Chromia website

Who Invests In Chromia?

NGC Ventures

Chromia Technology

Chromia was developed to be a response to the vulnerabilities of other popular blockchain databases. ChromaWay, the parent company behind Chroma, initially developed Postchain, an open-source high-performance blockchain. Chromia, at its core, is first line Postchain, an open-source relational database.

Legitimacy Screening of CHR

Chromia has a legitimate product, built using blockchain technology and has public roadmap showing its development plans. This gives us the confidence to confirm that CHR has an underlying fundamental value, that can be considered as “Mal” under Islamic rulings.

As a project it has legitimacy, so legitimacy screening for Chromia is a pass

Is Chromia project aligned with Islamic values?

Yes, Chromia project does align with Islamic values as the project aims to decentralize open source applications on a decentralized database. It is essentially clear from all things forbidden in Islam.

Financial Screening of Chromia:

Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. CHR is not backed by any equity, so there is no financial screening required on this coin/ token. Here we would typically look at things like debt to income ratio to ensure borrowing is limited to a tolerable level.

CHR Token Screening for Shariah Compliance

CHR has four primary uses in Chromia’s ecosystem:

1. CHR is utilized to buy fundamental hosting resources paid from the dApp to the hosting service provider.
2. CHR is the standard currency within the Chromia ecosystem, and likewise, it is used by dApps for collecting fees or counting on it to lock and peg their dApps to.
3. This incentive helps stop the occurrence of concerns by providers or securities due to the fact that they all work to conserve a healthy ecosystem.
4. Chromia capitalizes on its CHVR token to understand its ecosystems, and it probably calls the CHVR token the “bread and butter” of the Chromia ecosystem.

Based on this the Chroia token is permissable so CHR token is considered halal.

Is Staking CHR Halal?       

Yes, staking CHR: Chromia is Halal. This method of Proof of Stake satisfies Islamic law. The effectiveness of the staking principle will be reflected in leaderboard rewards as well as transaction fees, and the reward for participating in governance applications.

What Does The Muslim Crypto Community Think of CHR?           

Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks CHR is a Halal digital asset based on its Shariah complaince screening.

Sharlife considers CHR: Chromia as a halal cryptocurrency based on the five areas assessed for 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 Chromia Halal: Is CHR Halal?

Yes, CHR: Chromia is Halal as its seeks to solve the challenges of individuals utilizing L1/L2 solutions. Specifically, scalability, security, and user experience. Chromaria was designed by ChromaWay to be a Shared Database in the decentralized ecosystem. This is nothing within this project that is against islamic law.

We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.