Is Hedera Hashgraph Halal: Is HBAR Coin Halal?
In this article we do a complete shariah screening of Hadera Hashgraph cryptocurrency, to see if HBAR coin is halal or haram. From investing, trading to staking, we’ve got your halal crypto investments covered.
What is Hadera Hashgraph?
A distributed ledger of transactions, otherwise known as a DLT (distributed ledger technology), is the name given by Hedera Hashgraph to its network. Blockchains are the most commonly used DLTs. The hashgraph consensus mechanism is designed to process more transactions more quickly than legacy Proof-of-Work networks, as they are often characterized by high latency and low transactions per second (tps).
The mainnet network nodes currently run Hedera software and serve to secure the Hedera Ledger by reaching a consensus on the validity and placement of transactions. But in the future, there will be permissionless nodes that will securely capture this historic information.
Further details on Hadera Hashgraph website
Who Invests In Hadera Hashgraph?
Digital Currency Group
Mind Fund Group
Is Hedera Hashgraph Halal: Is HBAR Coin Halal? We’d Love to Hear Your Thoughts
Sharing the collective wisdom of thousands of Muslim crypto traders and investors.
Hadera Hashgraph Technology
Hedera uses hashgraph to settle transactions, where hashes function as votes on transaction locations. With this mechanism, the system reaches exchange finality more quickly than with other consensus mechanisms, since it simply requires a final vote on timestamps and order. Hashgraph eliminates the use of auctions that charge fees, which leads to higher costs in buys and sells when native virtual currencies fluctuate in cost and the elevation of MEV (miner extractable value).
Legitimacy Screening of Hadera Hashgraph
Hashgraph is a distributed ledger technology that has been described as an alternative to blockchains. It has a legitimate product and a roadmap showing its development plans. This gives us the confidence to confirm that HBAR 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 Hadera Hashgraph project aligned with Islamic values?
Yes, Hadera Hashgraph: HBAR project does align with Islamic values as the project proposes a fast, fair, and safe network for applications to utilize hashgraph efficiently on a widely trusted public decentralized network. this does not go against Islamic ruling.
Financial Screening of HBAR:
Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. Hadera Hashgraph 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.
HBAR Token Screening for Shariah Compliance
Fees in HBAR are paid to consensus nodes for processing and timestamping transactions and for any subsequent maintenance, such as storing a file or token balances. Fees serve to discourage DoS (Denial of Service) attacks by making such attacks prohibitively expensive. Fees are denominated in USD but charged in HBAR.
Developers often use the HBAR to pay for network services, such as transferring HBAR, handling fungible and non-fungible tokens, and logging data. The Hedera Hashgraph system complies with islamic principles. Based on this the token is permissable so Hadera Hashgraph: HBAR token is considered halal.
Is Staking HBAR Coin Halal?
Yes, staking Hadera Hashgraph: HBAR is Halal. The node’s effect on the determination of consensus timestamp and order depends on whether other non-node accounts proxy to that node. Nodes (and those that proxy their HBARs to nodes) will receive daily reward payments as compensation for contributing to node operation during that period.
This method of staking is permissable and in line with Islamic law.
What Does The Muslim Crypto Community Think of HBAR?
Islamic Finance Guru (IFG) believes Hadera Hashgraph: HBAR is a halal cryptocurrency based on its method of Shariah complaince screening.
Marhaba DiFi‘s Shariah governance board also beleives Hadera Hashgraph: HBAR is a halal crypto.
Sharlife considers Hadera Hashgraph: HBAR 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 Hadera Hashgraph: HBAR 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 Hadera Hashgraph Halal: Is HBAR Coin Halal?
Yes, Hadera Hashgraph: HBAR is Halal as its a different kind of cryptocurrency than the majority of crypto projects. The Hedera Hashgraph system uses the Hashgraph algorithm and operates on its own token. Many people refer to the network as new blockchain or the “blockchain killer”. Perhaps this is the reason so many VC’s have jumped on board? Nonetheless, despite being different it operates like any other blockchain network in terms of security and features etc.
We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.