Is QTUM Crypto Coin Halal?
In this article we do a complete Shariah screening of Qtum to determine if it is a halal or haram cryptocurrency. The short answer is yes, Muslims may trade and invest in QTUM, but have a read and see if you are comfortable with our assessment first.
What is Qtum?
Qtum (pronounced Q-Tum) is a smart contract platform that uses a Proof-of-Stake (PoS) consensus mechanism to prove transaction blocks and provide security assurances. It combines different features of Ethereum and Bitcoin blockchains. The Qtum platform uses Bitcoin’s code of security and dependability purposes because it implements a UTXO design.
The platform also integrated Ethereum’s virtual machine (the EVM), which enabled a portion of the code to run Turing-complete code that could support smart contracts, thus allowing for the development of decentralized applications (dApps). Qtum’s UTXO stack has a middleware layer, known as the account abstraction layer (AAL), to ensure that the UTXO set was compatible with the smart contract execution layer.
Qtum will create a platform based the best features of both the Bitcoin and Ethereum blockchains. The Qtum protocol uses the Bitcoin core protocol to ensure stability and security. Bitcoin is missing Turing-complete smart contracts, which made Qtum integrate the Ethereum Virtual Machine (also known as the EVM) so the network could support DApps.
Qtum incorporated the Ethereum virtual machine (known as the Ethereum Virtual Machine or the EVM) into the Qtum network in order to improve its overall scripting capacities. Qtum went on to integrate the X86 Virtual Machine, which enables developers to orchestrate smart contracts in other languages, such as Solidity.
Further details on Qtum website
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Qtum is planning to deploy the first iteration of Incentive Proof-of-Stake (IPoS), which is compatible with UTXO-based blockchains, such as Bitcoin. Qtum’s UTXO model was selected to support consistent, reliable, traceable transactions, and IPoS iterates upon traditional PoS models by introducing incentive mechanisms that are based on online node numbers estimates. Initially, Qtum will include a Proof-of-Stake (PoS) model but will be transitioning over to the Integral Proof-of-Stake (IPS) model later on.
Qtum dvelopers use an Ethereum Virtual Machine (EVM) just like the Ethereum blockchain does. But the Qtum EVM is distinct in that it is backward-compatible, as opposed to Ethereum’s EVM. Qtum also supports an Account Abstraction Layer (AAL) that enables the EVM to run existing Ethereum smart contracts on the platform without having to make changes. The Qtum Contract Ledger stores smart contract language, data feeds, and oracles for contract execution.
As an Ethereum-based hybrid, Qtum prioritizes protecting transaction confirmations at the expense of another property. A typical Proof-of-Work (PoW) transaction fee should be no less than the amount transacted.
Legitimacy Screening of Qtum
Patrick Dai graduated from Draper University before withdrawing from his doctoral degree from the Chinese Academy of Sciences. Previously employed by Alibaba, and committed to the blockchain technology development.
Even though in the nascent stage of the launch, Qtum was an ETH-20 token, later it moved to native blockchain being onboarded to Mainnet. With the specific objective of achieving comfort and safe transactions and protecting traders from fraud, QTUM launched its ICO in March 2017. Despite a successful token offering, it raised $15 million.
This gives us the confidence to confirm that Qtum 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 Qtum project aligned with Islamic values?
Yes, QTUM crypto project does align with Islamic values as it is a cryptocurrency that combines the security of Bitcoin’s blockchain model and the versatility that Ethereum platform offers. There is nothing against Islam about such a technology.
Financial Screening of Qtum:
Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. QTUM 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.
QTUM Token Screening for Shariah Compliance
Token Type: Native
Token Uses: Payments, vote
To pay transaction fees (gas fee) for smart contract calls or QTUM transactions, QTUM account holders can make use of coins like gas fees. They can also deploy QTUM to Qtum’s on-chain governance system, the Decentralized Governance Protocol (DGP), and vote on adjustments by coin or fiat.
This token has a utility that is permissable under Shariah so QTUM’s token is considered halal.
Is Staking QTUM Halal?
Qtum’s native token (Qtum Token) enables users to pay a transaction fee, participate in network security, and vote on protocol upgrade proposals. Qtum permits loyalty token holders to stake their coins to guarantee transactions and product blocks. Stakers can potentially receive block rewards (sometimes called staking or inflation rewards) for allowing them to lock up their tokens on the protocol.
The staking method used by this protocol is free from Riba, Gharar, and Maisir so staking Qtum is halal.
What Does The Muslim Crypto Community Think of Qtum?
Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks QTUM coin is a Halal digital asset based on its Shariah complaince screening.
Sharlife considers QTUM 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 Qtum Crypto Coin Halal?
Yes, QTUM crypto coin is Halal as it is a cryptocurrency that combines the security of Bitcoin’s blockchain model and the flexibility of Ethereum’s smart contracts. This technology is not against Shariah guidelines so Muslims may invest, trade and stake QTUM crypto coin.
We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.