Is STORJ Halal?
What is Storj?
Storj uses blockchain technology and peer-to-peer protocols to provide a decentralized, secure, private, and encrypted cloud storage.
The Storj Network (STORJ) aspires to provide secure, cost-effective decentralized cloud storage of user data. Contrasting centralized data storage services, Storj’s distributed architecture with end-to-end encryption safeguards against cyber-intrusions, enhances dependability, increases download upload speeds, and improves performance.
Storj is a peer-to-peer smart contract operating system that encourages trust through the arbitration of programming codes. Clients on the network marketplace no-cost hard drive space from growers, who use StorjShare to set prices.
Further details can be found on Storj website.
Who Invests In Storj?
Asymmetry Asset Management
Iterative Capital Management
PECUNIO Cryptocurrency Fund
Tank Stream Ventures
Is STORJ Halal? We’d Love to Hear Your Thoughts
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Storj Labs operates Tardigrade, a cloud storage tool that claims it is at least as good as major cloud providers, especially S3, Google, and Microsoft. The tool seeks to save organizations large sums of money by leveraging technology at a tenth of the price.
Any applications with custom connectors that allow users to store data on Tardigrade and users of the connector program will share a portion of the money made from those users.
Legitimacy Screening of Storj
Legitimacy screening ensures that the digital asset is a genuine project and not a scam. Storj has a legitimate product, built using blockchain technology and has public roadmap showing its development plans.
This gives us the confidence to confirm that STORJ 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 Storj project aligned with Islamic values?
Yes, STORJ project does align with Islamic values so it has a big tick as far as the project screening is concerned. The goal of the project is to give users a platform for storing their information securely on the blockchain.
Financial Screening of STORJ:
Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. STORJ 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.
Storj Token Screening for Shariah Compliance
The Storj token enables the network to coordinate different entities within the network so that they can exchange value in a way that is inline with the goals of the entire network, including immutability, safety, and third-party verification.
STORJ tokens are used to make payments between farmers and other network users, mainly around cloud storage. Based on this the token could be considered halal.
Is Staking STORJ Halal?
Tardigrade users are incentivized to pay using STORJ token, instead of a credit card, by receiving a bonus on any STORJ token deposit they make. This allows users to lower their cloud storage bills even further. Any third party operating a Satellite must also accept STORJ as a means of payment for storage and bandwidth.
The new block procurement system implemented by this particular method follows the tenets of the Shariah, so staking Storj would be Halal.
What Does The Muslim Crypto Community Think of Storj?
Sharlife considers Storj as a halal cryptocurrency based on the five areas assessed for Shariah complaince screening.
Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks Storj is a Halal digital asset based on its 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 STORJ Halal?
Yes, Storj offers cloud based storage solutions using blockchain technology. Just like AWS or Google Drive which are all Shariah-compliant. Taking everything into account, there is nothing in the Storj ecosystem that goes against Shariah ruilings so we beleive Storj Halal and compliant as an investment.
We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.