In this article we do a complete shariah screening of Harmony: ONE cryptocurrency. From investing, trading to staking, we’ve got your halal crypto investments covered.
What is Harmony ONE?
Harmony is an open source blockchain platform for building decentralized applications (dApps). It uses a phenomenon called state chewing, which splits a chain into independent chains that concurrently process transactions and keep information, for fast transactions.
Currently, Harmony supports 1,000 nodes on 4 shards, which work together to create new blocks every two seconds with finality (exempted from competition). The project has a plan to add more shards and support more nodes over time.
The protocol’s Effective Proof of Stake (EPoS) staking mechanism allows token owners to delegate their holdings to network validators but aims to bring decentralization to delegated assets. Harmony’s native token, ONE, uses the transfer mechanism.
Further details on Harmony website
Who Invests In Harmony?
Digital Asset Capital Management
Qtum Chain Foundation
Is Harmony Halal: Is ONE Halal? We’d Love to Hear Your Thoughts
Sharing the collective wisdom of thousands of Muslim crypto traders and investors.
Sharding, a technique utilized to split a blockchain database into multiple segments, is used to evaluate the ensuing consensus procedure. This divide and conquer approach accelerates processing power ever-so-slightly, as it enables numerous splits to process information concurrently.
Harmony splits not only our network nodes but also the blockchain into blocks. This model can lower the hardware requirements for prospective node operators.
Legitimacy Screening of ONE
Harmony has a legitimate product, built using blockchain technology and has public roadmap showing its development plans. This gives us the confidence to confirm that Harmony 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 Harmony project aligned with Islamic values?
Yes, Harmony: ONE project does align with Islamic values as the project aims to be a layer 1 project and allow developers to buid Dapps. This is not against Islamic ruling.
Financial Screening of ONE:
Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. Harmony 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.
ONE Token Screening for Shariah Compliance
This native currency has its own significance for all kinds of payments within Harmony, including staking, transaction fees, voting, and governing. Based on this the token is permissable so Harmony: ONE token is considered halal.
Is Staking ONE Halal?
Yes, staking Harmony: ONE is Halal. The token can be used for staking, which is requirement for participating in its Proof-of-Stake (PoS) consensus and earn block rewards and transaction fees. This method of staking is permissable and in line with Islamic law.
What Does The Muslim Crypto Community Think of ONE?
Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks Harmony: ONE is a Halal digital asset based on its Shariah complaince screening.
Sharlife considers Harmony: ONE 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 Harmony Halal: Is ONE Halal?
Yes, Harmony: ONE is Halal as its operates a scalable, secure blockchain that offers developer cross-chain and interoperability in developing Dapps. The app ecosystem is accessible using ‘Harmony Bridge’ to enable interaction between the ETH and HARMONY blockchains. Virtual assets are accessible in Harmony ecosystem thanks to a bridge named Horoscope. Nothing in this project contradicts Shariah guidelines so Muslims can 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.