Is Helium Halal: Is HNT Halal?
In this article we do a complete shariah screening of Helium: HNT cryptocurrency. From investing, trading to staking, we’ve got your halal crypto investments covered.
What is Helium: HNT Coin?
The Helium network is an open source wifi network using the LongFi protocol for powering long-range, low power devices. It uses Proof of Coverage, a novel consensus algorithm based on HoneyBadger BFT, and Helium network.
Helium began in 2013 by Shawn Fanning, Amir Haleem, and Sean Carey, with a mission to develop technology to make computing devices. Helium believes current wireless connectivity options are not suitable for the development of future devices.
To solve this, they developed the Helium Hotspot, a combination of a physical blockchain node and wireless gateway that network participants are able to deploy to receive HNT, the native token. Individuals can receive rewards by submitting proof that begins to wireless coverage in a cryptographically verified location time and has placed out the launch.
Further details on Helium website
Who Invests In Helium?
Union Square Ventures
Is Helium Halal: Is HNT Halal? We’d Love to Hear Your Thoughts
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When a location has been established, a Proof-of-Coverage is used to verify Helium Hotspots’ claims of their location, providing proof and a way to verify location. Knowing where, when, and how strongly a signal was received allows for confirmation of a transmitter’s location.
Hotspots are constantly challenged by the Helium blockchain to prove their coverage, and they carry a score that floats between 0.0 and 1. This score represents the Network’s confidence in their location as derived from these challenges, and thereby the quality of their Helium LongFi wireless coverage.
Legitimacy Screening of HNT
Helium has a legitimate product, built using blockchain technology and has public roadmap showing its development plans. This gives us the confidence to confirm that Helium 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 Helium project aligned with Islamic values?
Yes, Helium: HNT project does align with Islamic values as the project operates a wireless network, simplar to those offered by traditional telecoms companies, excet that is uses hubs owned by individuals. This is not against Islamic ruling.
Financial Screening of HNT:
Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. Helium 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.
HNT Token Screening for Shariah Compliance
Helium, the native token of the Helium blockchain, contains two primary uses. It can be used as a reward to Helium Hotspot operators for participating in building out the network, and also as the foundation for Helium Data Credits (DCs) that are produced via the burning of Helium tokens. These DCs are used to pay all network fees.
Based on this the token is permissable so Helium: HNT token is considered halal.
Is Staking HNT Halal?
Yes, staking Helium: HNT is Halal. To run a validator requires a stake (deposit) of 10,000 HNT, and running validator node software is compulsory for a validator to make an application. Users are required to pay a deposit before leveraging the validator’s service and earn rewards in return.
This method of staking is permissable and in line with Islamic law.
What Does The Muslim Crypto Community Think of HNT?
Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks Helium: HNT is a Halal digital asset based on its Shariah complaince screening.
Sharlife considers Helium: HNT 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 Helium Halal: Is HNT Coin Halal?
Yes, Helium: HNT is Halal as its ecosystem is designed as a platform to solve many technology IoT problems in the world. The system’s native tokens are unbiased, while only serving as stores of value to line up all of the infrastructure. Helium is therefore compliant with Shariah and Muslims may invest, trade and stake HNT coin.
We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.