Is Ravencoin Halal: Is RVN Halal?

In this article we do a complete Shariah screening of Ravencoin to determine if RVN is a halal or haram cryptocurrency. The short answer is yes, Muslims may trade and invest in RVN, but have a read and see if you are comfortable with our assessment first.

What is Ravencoin?

Ravencoin is a platform that allows the issuance of tokens for a variety of purposes on its network, so long as the primary function of the token is as a means of transfer. Ravencoin’s infrastructure is based on a fork of Bitcoin, and it supplies an issuance platform for token issuers that avoid the generally used smart-contract centric blockchains of Ethereum. Ravencoin highlights its decentralized consensus method and centralized security model as its chief competition over other systems.

Ravencoin ‘s design is largely similar to Bitcoin’s, though the developers made several changes to the protocol to enable the creation and transaction of tokens launched on the Ravencoin network. Like Bitcoin, Ravencoin utilizes a Proof-of-Work (PoW) consensus mechanism to secure the network.

The specific hashing algorithm it uses is called X16R, which is designed to allow more decentralized mining than Bitcoin SHA-256. More specifically, X16R is designed to resist mining by placing an application-specific integrated circuit chip (ASIC) in the chipset. For purpose-built ASICs and specialized computer hardware, the mining process is more profitable for large industrial-scale operations than individual hobbyists.

Further details on Ravencoin website

Ravencoin Technology

Ravencoin is an experimental coin that allows fast, worldwide payments to anyone, anywhere in the world. Ravencoin uses the non-centralized peer-to-peer network model to make transactions and manage money.

Ravencoin organizes its own blockchain, network assets, and governance protocols in a way that is different from Bitcoin. To lower barriers for accessing the network for mining, Ravencoin uses a variation of the Proof of Work consensus mechanism known as KAWPOW. In much the same way as Proof of Work functions for Bitcoin, the Ravencoin protocol is secured by KAWPOW, transactions are validated, and newly mined Ravencoin is distributed across a network of computers running the Ravencoin software.

Legitimacy Screening of Ravencoin

In 2018, a trio of co-founders Bruce Fenton, Joel Weight, and Tron Black developed and launched the Ravencoin crypto project. Compared to the remainder of the cryptocurrency crowd, all three already had extensive stints in the entrepreneurship and software industries before going on this project.

Fenton was already known to be a well-known figure in the blockchain world, having served as a board member and executive director of the Bitcoin Foundation. Prior to his foray into the world of blockchain, he had an impressive career in investment banking stretching back to the nineties, when he served as vice president of Morgan Stanley.

Backed by Overstock.com progenitor Medici Ventures, the Ravencoin crypto startup was established in 2018 with the RVN token without any ICO or pre-sale, seeking fairer and more accessible methods than other structures only offer. Because Ravencoin chose not to conduct a pre-mine or presale of its coins, no RVN was set aside for developers, advisors, Medici Ventures personnel, or other early project participants. In 2020, the project created Ravencoin Foundation with the goal of becoming independent of Medici Ventures. Ravencoin is a cryptographic protocol that is entirely open source, so virtually anyone can run, change, and contribute to the code

This gives us the confidence to confirm that Ravencoin 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 Ravencoin project aligned with Islamic values?

Yes, Ravencoin crypto project does align with Islamic values as it’s architecture is similar to Bitcoin. At least in part, the currency’s total supply, block rewards, and proprietary Ravencoin mining algorithm are designed to achieve decentralization and efficient token transfer. Basically another Bitcoin fork, so there is nothing against Islam about such a technology. 

Financial Screening of Ravencoin:

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

RVN Token Screening for Shariah Compliance

Token Type: Native

Token Uses: Payments

Ravencoin tokens are going to be used to facilitate the creation of unique assets and the transfer of them. Unique assets or tokens can be used as the creator decides. Some examples include, but not limited to, land deeds, car ownership, energy credits, securities, partnership interests, virtual goods, airline miles, and so on. Payments, or rewards, can be paid through the native token, RVN.

This token has a utility that is permissable under Shariah so Ravencoin’s RVN token is considered halal.

Is Staking RVN Halal?       

Computing Power is a critical factor in Proof of Work, which is the basis for off-chain transaction rewards for ravencoin staking. As far as we can see this reward mehanism does not contain Riba, Gharar, or Maisir and is therefore halal.

What Does The Muslim Crypto Community Think of RVN?           

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

Sharlife considers Ravencoin: RVN 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 Ravencoin Halal: Is RVN Crypto Coin Halal?

Yes, Ravencoin: RVN crypto coin is Halal as it is a cryptocurrency similar to Bitcoin. To some extent, the currency’s total supply, block rewards, and proprietary Ravencoin mining algorithm are designed to achieve decentralization and efficient token transfer. This technology is not against Shariah guidelines so Muslims may invest, trade and stake RVN 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.