Is Elrond Halal: Is EGLD Coin Halal?
In this article we do a complete shariah screening of Elrond cryptocurrency, to see if EGLD coin is halal or haram. From investing, trading to staking, we’ve got your halal crypto investments covered.
What is Elrond EGLD?
Elrond is a reliable, high-speed blockchain designed for high throughput. It uses Adaptive State Sharding as its scaling solution and a Proof-of-Stake (PoS) variation called Secure PoS to secure its network. Elrond also comes with a WebAssembly-based virtual machine that can cope with the creation of decentralized applications.
Elrond is a new blockchain architecture, providing for high throughput and lightning-fast execution. To accomplish that, Elrond includes two key features: an Adaptive State Sharding mechanism, and a secure Proof of Stake algorithm. These features enable linear scalability.
Its smart contract processing platform can handle over 15,000 transactions per second, with delays of no more than 6 seconds and inexpensive transaction fees, but aims to remain permissionless, borderless, and globally accessible.
Further details on Elrond website
Who Invests In Elrond?
Maven 11 Capital
NEO Global Capital
Is Elrond Halal: Is EGLD Coin Halal? We’d Love to Hear Your Thoughts
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Adaptive state sharding transaction, data & network sharding with a mechanism for shard merges and splits that factors in the available nodes validators but simultaneously also takes into account the overall system usage.
The Secure Proof of Stake (POS) protocol enables a consensus on block production in two stages with two modified BLS multi-signatures among the randomly selected validators of the consensus group.
Legitimacy Screening of EGLD
Elrond has a legitimate product, built using blockchain technology and has public roadmap showing its development plans. This gives us the confidence to confirm that EGLD 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 Elrond project aligned with Islamic values?
Yes, Elrond: EGLD project does align with Islamic values as the project offers new blockchain architecture, designed for high throughput and fast execution speed. None of which are against Islamic rulings.
Financial Screening of EGLD:
Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. Elrond: EGLD 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.
EGLD Token Screening for Shariah Compliance
EGLD will allow network participants to do anything, such as a network action such as submitting transactions, running smart contracts, providing staking, or running a node. Based on this the token is permissable so Elrond: EGLD token is considered halal.
Is Staking EGLD Coin Halal?
Yes, staking Elrond: EGLD is Halal. The Elrond team created the token to serve as a medium of payment for services generated by the platform. They can stake EGLD on the network to deploy a mining rig in exchange for inflation rewards.
This method of staking is permissable and in line with Islamic law.
What Does The Muslim Crypto Community Think of EGLD?
Islamic Finance Guru (IFG) believes Elrond: EGLD is a halal cryptocurrency based on its method of Shariah complaince screening.
Sharlife considers Elrond: EGLD as a halal cryptocurrency based on the five areas assessed for Shariah complaince screening.
Marhaba DiFi‘s Shariah governance board also beleives Elrond: EGLD is a halal crypto.
Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks Elrond: EGLD 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 Elrond Halal: Is EGLD Coin Halal?
Yes, Elrond: EGLD is Halal as ELGD functions as a store of value, much like Bitcoin and the ecosystem uses proof of stake consensus. We’ve assessed the features and components of the network, and nothing questionable has been found, so are please to say Muslims are permitted to trade and invest in this coin.
We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.