Is Internet Computer Halal: Is ICP Coin Halal?

What is Internet Computer, or ICP Coin?

The DFINITY blockchain network aims at advancing the measure of smart contracts through the development of blockchain-based networks called Internet Computer (IC). The goal of this endeavor is to change the way users access internet applications by driving nodes in the specialized hardware housed by different independent data centers.

The IC provides developers with an opportunity to run and deploy applications by using computer memory containers, which are similar to those of smart contracts. Each container can store up to 4 gigabytes (GB) of data.

Further details can be found on Difinity website.

Who Invests In Difinity?

Polychain Capital

SNZ

Scalar Capital

ZeroEx, Intl.

a16z Crypto

Internet Computer Technology

IC is developing Chain Key Technology to liberate the Ethereum Network from this model by introducing several complementary components, such as an on-chain governance system (a network nervous system), a method of generating non-interactive distributed keys, and a decentralised identity.

Chain Key Technology is a set of cryptographic protocols that control the nodes involved in the Internet Computer. The IC can use a single public key that is small enough (in size) to be applicable to any gadget, including all smart phones and smartwatches.

Legitimacy Screening of Difinity

The project was founded in October 2016 as DFINITY by Dominic Williams. DFINITY raised $121 million from leading investors including Andreessen Horowitz, Polychain Capital and other mentioned above. In 2018, the foundation distributed ICP tokens to 50,000+ investors through an airdrop campaign.

This gives us the confidence to confirm that ICP 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 Internet Computer project aligned with Islamic values?

Yes, ICP project does align with Islamic values as it acts like a typical layer 1 project allowing others to build dapps on it, so it has a big tick as far as the project screening is concerned.

Financial Screening of Difinity:

Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. Difinity 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.

ICP Token Screening for Shariah Compliance

Token Type: Native

Token Uses: Payments, Work

The IC has two primary tokens: the ICP is the main governance token, and the cycles (created by burning ICP) are a stablecoin that enables users to pay for computational resources and network transactions.

ICP tokens are used to make payments between farmers and other network users, mainly around cloud storage. Based on this the token could be considered halal.

Is Staking ICP Halal?       

The network incentivizes the people who enable the network to function properly and elect and rewards them with updated inclusive minting (ICP). These contributions help (1) provide the voting rewards available to members of the governance committee, (2) compensate those operating node machines to host the network, and (3) continue to do miscellaneous activities.

The staking method applied by this protocol follows the tenets of the Shariah, so staking Internet Computer: ICP coin would be Halal.

What Does The Muslim Crypto Community Think of ICP?           

Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks Internet Computer: ICP is a Halal digital asset based on its Shariah complaince screening.

Sharlife considers Internet Computer: ICP 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 Internet Computer or ICP Coin Halal?

Yes, Internet Computer (ICP) was created in order to improve the Internet. The web has a way of bringing everybody and everything together, but services and systems are operated by independent companies. This projects goals and ecosystem align with Shariah ruilings so we beleive Internet Computer: ICP Halal and compliant as an investment.

We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.