Is Quant Halal: Is QNT Halal?
In this article we do a complete Shariah screening of Quant to determine if QNT is a halal or haram cryptocurrency. The short answer is yes, Muslims may trade and invest in QNT, but have a read and see if you are comfortable with our assessment first.
What is Quant?
Quant is a technology that enables you to connect various distributed ledgers (DLTs) by reducing obstacles between them. DLT is a database of data that is synchronized and accessible from various locations and to multiple participants. Using a blockchain eliminates the need for a central party to keep a check on manipulation. DLT is an instance of a blockchain. The platform seeks to facilitate collaboration between the various DLTs so things can grow as swiftly as possible.
Quant’s platform is ultimately trying to tackle the problem of limited adoption of the technology due to the technical aspects of maintaining records on diverse blockchains. The second major issue the Quant platform is trying to solve is that users do not have a technology-supported means to move their data across many blockchains and see which one is best for them. Quant aims to create a blockchain architecture that can enable different blockchain networks to talk to one another without introducing any inconsistencies or bottlenecks.
Quant’s Overledger DLT Gateway is said to be the solution to the previous issues. Overledger enables users to operate with various DLT structures without requiring additional infrastructure. Through the Overledger DLT Gateway, users can exchange information with different platforms. Data like smart-contract IDs, identity documents (IDs), or digital assets (like crypto coins and non-fungible tokens) can be exchanged by users across different ledgers. Overledger allows users to select the technology that suits their needs. Overledger also provides tools for business use, which allows users to implement multi-chain strategies efficiently.
Developers can also build mDApps by using the Overledger technological system of Quant. mDApps are multi-DLT editions of decentralized applications (DApps, which only connect with one piece of data). Decentralized applications that are accessed by a single account don’t necessarily benefit from the use of decentralized ledgers, which make it possible for multiple accounts to access the same ledger simultaneously. Overledger DLT enables developers to create smart contracts from any programming language on any DLT, even those DLTs that do not support smart contracts natively.
Further details on Quant website
Is Quant Halal: Is QNT Halal? We’d Love to Hear Your Thoughts
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Blockchain and distributed ledger technologies have more and more use cases, they still lack seamless interoperability, both amongst the blockchain ledgers and external networks. Quant is expected to fill this gap as a blockchain intermediate protocol ‘s missing link. Overledger is supposed to create any network designed for a certain purpose with a gateway for all other blockchains, much like a magic portal that offers access to all the chains.
This also applies to the framework for easy interaction between applications within an ecosystem with the blockchain that is pertinent to the project. It also applies to the exchange of messages and data by adding the hash of a message to the metadata of any transaction in the formula. It is not necessary to include yet another type of chain. Users can rely on the trust and security of the source chain.
Development of specific blockchain-based applications does not need to bear a cost or require additional technological support. Overledger hopes to support the development of customized solutions for certain industries, with its design functioning as a medium through which costs can be cut and the need for a complex network of chains can be avoided. Businesses don’t have to limit themselves to a single blockchain, they can implement multiple features from all its supported blockchains.
Overledger is a technologically open platform, meaning the users are not restricted to a single business when wanting to link with various networks and blockchains. The team developing the Overledger is striving to enable rapid and widespread adoption of dApps by delivering a straightforward system that allows users to make use of the Overledger core.
Legitimacy Screening of Quant
Gilbert Verdian (CEO) is active in the security industry for almost two decades. He is the co-founder of the Blockchain ISO Standard TC307. Other key people include chief architect Jean-Paul de Jong and Colin Paterson (CTO). The development team led the ICO that took place in April 2018 and collected over USD 11 million. Potential competition for the Quant platform included WAN, Cosmos, Polkadot and other similar projects.
This gives us the confidence to confirm that Quant 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 Quant project aligned with Islamic values?
Yes, Quant crypto project does align with Islamic values as is has a platform offering distributed ledger technology for developers who hope to build a decentralizing dApp or use smart contracts. There is nothing against Islam about such a technology.
Financial Screening of Quant:
Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. Quant: QNT 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.
QNT Token Screening for Shariah Compliance
The native token of the platform is the Quant token (QNT), an ERC-20 token hosted on the ETH (Ethereum) network. There are three uses cases for QNT:
- One instance of QNT is to provide access to a particular service or app that is a part of the Quant system. Both users and developers are able to access the system.
- Overledger gateway operators also have to convert Quant tokens to QNT to pay for annual license fees and participate in the Overledger network.
- And last, the administrators of binding flow traffic within the Overledger network are compensated by means of Quant tokens with Quant’s treasury system.
This token has a utility that is permissable under Shariah so Quant’s QNT token is considered halal.
Is Staking Quant Halal?
At the time of screening there is no staking QNT.
What Does The Muslim Crypto Community Think of QNT?
Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks Quant: QNT coin is a Halal digital asset based on its Shariah complaince screening.
Sharlife considers Quant: QNT 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 Quant Halal: Is QNT Crypto Coin Halal?
Yes, Quant: QNT crypto coin is Halal as it is an Ethereum-based token used within Overledger. It is designed to power software tools to connect public ledgers and private networks.. This technology is not against Shariah guidelines so Muslims may invest, trade and stake QNT 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.