Is Horizen Halal: Is ZEN Coin Halal?
In this article we do a complete shariah screening of Horizen: ZEN cryptocurrency. From investing, trading to staking, we’ve got your halal crypto investments covered.
What is Horizen: ZEN Coin?
Horizen offers a platform for businesses and individuals to create their own blockchain infrastructures and applications. It provides scalable, highly secure blockchain infrastructure.
The project’s sidechain solution is a type of verifiable cross-chain transfer protocol called Zendoo. The project also includes a zero-knowledge proof protocol (zk-SNARK) to facilitate security with its sidechains.
Horizen was founded in May 2017 as ZenCash. The project’s founding goal was to construct technologies with zero-knowledge-proof designs, a funding strategy that was sustainable, and an emphasis upon adequately incentivizing stakeholders and perpetuating a beneficial ecosystem.
Further details on Horizen website
Is Horizen Halal: Is ZEN Coin Halal? We’d Love to Hear Your Thoughts
Sharing the collective wisdom of thousands of Muslim crypto traders and investors.
The network of nodes running the blockchain validates, propagates, and competes with pending transactions that they heard about (in a pool) in new blocks. Economic nodes (also known as “full nodes”) validate transaction input vectors that are valid in line with the network’s consensus rules, propagate transactions to other network nodes, and await confirmation that the transactions have been added to the schedule of a mining node by inclusion in a block.
Legitimacy Screening of Zorizen
Horizen has a legitimate product, built using blockchain technology and has public roadmap showing its development plans. This gives us the confidence to confirm that ZEN 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 Horizen project aligned with Islamic values?
Yes, Horizen: ZEN project does align with Islamic values as the project allows developers to build dapps on their network which can interact with others like Ethereum and Polkadot for example. This is not against Islamic ruling.
It is worth noting that Horizen is a fork of ZClassic, which was a fork of Zcash. Horizen or Zencash at the time was a victim of an attempted 51% attack in 2018, which pushed the developers to make it even more secure.
Financial Screening of ZEN:
Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. Horizen: ZEN 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.
ZEN Token Screening for Shariah Compliance
Horizen’s native currency is ZEN. Horizen’s transactions can either be transparent or shielded. Transparent transactions function the same way as Bitcoin does, with visible addresses and transaction amounts, while shielded transactions function by creating a hidden address and hiding the transaction amount. By using shielded transactions, parties can opt to grant themselves discretion over how much information about the transaction is released.
Based on this the token is permissable so Horizen: ZEN token is considered halal.
Is Staking ZEN Coin Halal?
Yes, staking Horizen: ZEN is Halal. Mining nodes work to empty the mempool usually in a highest-to-lowest fee order by picking transactions to include in the next block and racing against each other to produce a hash less than the target number set by Horizen’s difficulty adjustment algorithm.
Proof of Work (PoW) consensus mechanism is used to verify that the chain of blocks with the most work (e.g., energy spent on solved hashes) is the valid chain. Other network participants can easily verify this work.
This PoW method of staking is permissable and in line with Islamic law.
What Does The Muslim Crypto Community Think of ZEN?
Islamic Finance Guru (IFG) believes Horizen: ZEN is a halal cryptocurrency based on its method of Shariah complaince screening.
Marhaba DiFi‘s Shariah governance board also beleives Horizen: ZEN coin is halal.
Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks Horizen: ZEN is a Halal digital asset based on its Shariah complaince screening.
Sharlife considers Horizen: ZEN 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 Horizen Halal: Is ZEN Coin Halal?
Yes, Horizen: ZEN is Halal as it is designed to be use as a cryptocurrency for transaction settlement with enhanced privacy features, so not against Shariah guidelines. Musims may invest and trade ZEN.
We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.