Is Klaytn Halal: Is KLAY Coin Halal?

In this article we do a complete shariah screening of Klaytn: KLAY Coin to determine if it is a halal or haram cryptocurrency. The short answer is yes, Muslims may trade and invest in KLAY, but please read on to find out more.

From investing, trading to staking, we’ve got your halal crypto investments covered.

What is Klaytn?

Klaytn is a public blockchain network developed by Kakao, a mobile platform in South Korea. It is intended to publicize the benefits and benefits of blockchain technology by carrying out a blockchain service for mass adoption. It offers a streamlined development environment and a singular user experience.

Klaytn is pioneering the development of blockchain technology to provide additional services to millions of users. Klaytn Blockchain is planning to invoke the Istanbul Byzantine fault-tolerant (IBFT) consensus algorithm based on proof of stake (PoS).

Further details on Klaytn website

Who Invests In Klaytn?

IDG Capital.

Klaytn Technology

Klayt blockchain is specifically attuned to firms that process huge volumes of data. Therefore, the broad consensus mechanism, such as proof of work or proof of stake, is not likely to be enough to adequately interact. Klayt blockchain is generated using the latest consensus mechanism, called IBFT (Istanbul Byzantine fault tolerance).

Ethereum can approximately execute 1000 transactions per second; on the other hand, Klaytn’s transaction fees are roughly 10 times cheaper than those on Ethereum. This is why Klaytn has spearheaded the implementation of blockchain in modern organizations, as scalability issues do not greatly matter to them any more.

Legitimacy Screening of Klaytn

Klaytn has a legitimate product, built using blockchain technology and has public roadmap showing its development plans. This gives us the confidence to confirm that KLAY 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 Klaytn project aligned with Islamic values?

Yes, Klaytn: KLAY project does align with Islamic values as the projects main goal is to provide businesses with the ability to connect their tech infrastructure into a blockchain network, which is not against Islamic ruling.

Financial Screening of KLAY:

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

KLAY Token Screening for Shariah Compliance

It’s used for paying transaction fees, and it’s additionally used as a medium of exchange in Klaytn. Based on this the token is permissable so Klaytn: KLAY token is considered halal. 

Is Staking KLAY Halal?       

Yes, staking Klaytn: KLAY is Halal. KLAY serves as a medium of exchange for staking on Klaytn. This method of staking is permissable and in line with Islamic law.

What Does The Muslim Crypto Community Think of KLAY?           

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

Sharlife considers Klaytn: KLAY 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 Klaytn Halal: Is Klay Coin Halal?

Yes, Klaytn: KLAY is Halal as Klaytn’s experience in digital and business-to-business services offers blockchain developers a unified environment to generate new protocols, and its fixed transaction fees ensure their transparency and reliability. its main goal is to provide businesses with the ability to link their tech infrastructure with a blockchain network. Therefore, this project does not go against Shariah and permissable for Muslimg to trade and invest in. 

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