Is Siacoin Halal: Is SC Halal?

is sc coin halal

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


What is Siacoin?

Siacoin is a P2P, decentralized, blockchain-based cloud storage platform in which network participants rent out and lease storage space and excess bandwidth to other users. The Sia network has no central authority, so the entire system is democratized through the use of decentralized P2P software and decentralized networks.


Siacoin cloud storage offers a greater level of security and privacy than typical cloud storage services, while being significantly more cost-effective as well. Sia storage rental is less expensive than that by conventional cloud service providers. Anyone who is in possession of extra space can rent it out on the Siacoin marketplace and get paid for it in the form of Siacoin tokens, which are paid by the consumers who receive the use of your assets and also bandwidth.


Despite the fact that tradition cloud service providers such as Apple and Google are more inexpensive to use, they still can’t match Sia’s inexpensive storage fees. Sia intends to attract more users intrigued by Sia’s cloud resources by way of its secure network and advanced administrative features. Furthermore, Siacoin aspires to help users regain control of their data. Siacoin’s cloud-based storage system relieves one of the biggest issues in cloud storage services, such as high costs for storage, the potential for ransomware attacks, the lack of control over one’s data, and corruption.


Further details on Siacoin website



Is Siacoin Halal: Is SC Halal? We’d Love to Hear Your Thoughts

Sharing the collective wisdom of thousands of Muslim crypto traders and investors.

Siacoin Technology

Siacoin’s blockchain network is based on a network that uses a peer-to-peer network to enable its users to act as hosts and tenants in a decentralized ecosystem without a single entity having a say in how the data or objects stored are used. Sia network users completely control their own documents and storage space, while renters pay hosts in Siacoin (SC) in exchange for their services.


The network health coverage relies on nodes, whereas the Siacoin approach compresses the user’s data into small fragments and distributes it among nodes. Each node can’t access some user data because it is confidential and can only be accessed with private keys linked to ownership. Even if a node could access the data, it would access only a portion of it, rendering the information useless.


Experts say that by this transfer process, the vulnerability of information is decreased along with the security of the technology as a whole. Each bit of information is split into 30 pieces. Siacoin ‘s decentralized nature facilitates high-speed communication with the network so that all users can access Siacoin’s cloud storage services without delay.


Siacoin’s hosting and renter networks are the two primary components. Hosts are paid by renters for providing cloud storage services. Siacoin hosts can offer you the capacity to store your files and various types of tools. Siacoin’s core function is the concept of File Contracts, which are a version of smart contracts. File Contracts have customized rules and are developed to automate communication between hosts and renters.






Legitimacy Screening of Siacoin

David Vorick and Luke Champine, who developed Siacoin cloud storage, presented this idea during a hackathon at MIT. Vorick and Champine founded Nebulous Inc , the parent company of Siacoin, in 2014, launching a beta version of the network for Siacoin in 2015.


They received $750,000 in investment from multiple sources for their Nebulous Inc and Siacoin project. The developers of Siacoin, Vorick and Champine, reached the consensus that 2015 would be the year that Sia would launch its most up-to-date version of the blockchain network. By the end of that year, Vorick and Champine had raised over $6.4 million dollars from investors like Fenbushi Capital, Raptor Group, INBlockchain and First Star Ventures.


The Siacoin development team has grown immensely in breadth and depth due to Vorick and Champine’s initial success.


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

Yes, Siacoin crypto project does align with Islamic values as it is a platform that lets users store data on a peer-to-peer network. Basically its the blockchain version of Google Drive and Dropbox, without a single entity controlling it. Seems like a good idea and we dont see anything against Islam about such a technology. 


Financial Screening of Siacoin:

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


SC Token Screening for Shariah Compliance

Token Type: Native

Token Uses: Payments

Siacoin is based on the Proof-of-Work protocol, so the number of SC coins that can be mined is incalculable. There are no limitations on the total amount of Siacoin (SC).


Sia uses a two-token system. Its native token Siacoin (SC), which exchanges between hosts and renters, and Siafunds (SF), which exchanges in Sia’s ecosystem. SC is the primary utility token used to pay for data storage, and SF is used as payment on the Sia network. Siafunds, on the other hand, are tokens designed for incentive’s a greater number of individuals to join our network.


(In May 2021) About 47.8 billion Siacoin were in circulation out of an inestimable supply. Siacoin does not have a fixed supply, so new Siacoin can be mined endlessly. Miners generate fresh blocks from SHA-256, validate electronic ledger entries through is a tough work, and are paid SC per fresh block each time they generate one.


Siacoin was created with the purpose of offering a safe and infinite supply of P2P cloud storage, which is why there’s no such thing as a limit on its supply.


This token has a utility that is permissable under Shariah so Siacoin: SC token is considered halal.




Is Staking SC Crypto Halal?       

No staking Siacoin at the time of assessment.



What Does The Muslim Crypto Community Think of SC?           

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

Sharlife considers Siacoin: SC 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 Siacoin Halal: Is SC Crypto Halal?

Yes, Siacoin: SC crypto coin is Halal as it is a file storage platform that uses a decentralized network instead of a centralized service. This platform is like Google Drive or Dropbox, except that there’s no one entity controlling the network itself. Instead, network users rent storage space from each other which is perfectly fine in terms of Shariah so Muslims may invest and trade Siacoin.

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


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