In this article we do a complete shariah screening of MINA Protocol to determine if it is a halal or haram cryptocurrency. The short answer is yes, Muslims may trade and invest in MINA coin, but please read on to find out more.
From investing, trading to staking, we’ve got your halal crypto investments covered.
What is MINA?
Mina is a lightweight smart contract platform that aims to become a worldwide payment network. It attempts to solve the scalability issues experienced in existing blockchains where verifying a blockchain becomes more expensive as its total transaction rate grows. In those cases, the cost of running a network node ends up exceeding what users can pay.
The developers believe that buying cryptocurrencies via Mina has a better chance than other payment processes. The team believes that Mina is designed for owners to be able to run a full node within a web app or an IoT device, which mostly lowers the barrier to entry and would make it available for a lot more use cases.
Further details on MINA website
Who Invests In MINA?
Three Arrows Capital
Is Mina Protocol Halal: Is MINA Coin Halal? We’d Love to Hear Your Thoughts
Sharing the collective wisdom of thousands of Muslim crypto traders and investors.
As blockchain scales in size, it becomes increasingly difficult to validate data on the blockchain, leading to centralization of validators. which could be prevented by Mina, which calls its blockchain concise and takes a constant amount of time and data to validate its current world state (10 kilobytes and 20 milliseconds).
Instead of maintaining the complete chain, a user only needs to hold to the present condition using a SNARK (succinct non-interactive argument of knowledge) to certify its’ validity. In other words, the validation of the chain depends on the ease of facilitating user involvement in the network.
Mina is able to accelerate transaction processing by orders of magnitude and requires far fewer resources than Proof of Work blockchain chains to keep up.
Legitimacy Screening of Mina
The project was started in mid-2017 by Evan Shapiro and Izaak. Izaak was studying cryptology at UC Berkeley for an Einstein Ph.D. at the time and learning about zkSNARKs.
This gives us the confidence to confirm that MINA 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 MINA project aligned with Islamic values?
Yes, Mina Protocol: MINA coin’s project does align with Islamic values as it is a layer 1 like Bitcoin and Ethereum that store many thousands of gigabytes of data which grow the capacity of blockchains with time. With Mina, no matter how much the network expands, the blockchain is always the same size. There is nothing inherently against Islamic guidelines with this project.
Financial Screening of MINA Protocol:
Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. Mina Protocol 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.
MINA Token Screening for Shariah Compliance
Token Type: Native
Token Uses: Payments, Vote
Mina is no different from the native token of other networks, as it is used to pay for the transactions and to create new mina to pay for block generation. This incentive mechanism is vital for the coordinators of many cooperative investments to reach an agreement and coordinate efforts without a central power.
The key function of the minas is to serve as a network anchor付еd per unit that features native value, can serve as collateral, or may be used for anything that can be digitally-native stored value. O(1) Labs hopes that applications for the network will use minas in ways that have not yet been imagined.
Is Staking MINA Coin Halal?
Yes, staking MINA coin is Halal. The staking method used by this blockchain project is permissable and in line with Islamic law. The stake duration yields rewards from contributions, without Riba, Gharar, or Maisir.
What Does The Muslim Crypto Community Think of Mina Coin?
Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks Mina Protocol: MINA coin is a Halal digital asset based on its Shariah complaince screening.
Sharlife considers Mina Protocol: MINA coin 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 Mina Protocol Halal: Is Mina Coin Halal?
Yes, Mina Protocol: MINA coin is Halal as it has the ambition to develop a decentralized payment process whose system history can be traced independently, even without any third party assistance. Muslims may invest, trade and stake MINA coin.
We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.