Is The Graph Halal: Is GRT Crypto Coin Halal?

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

What is The Graph?

The Graph is an (open-source protocol based on DLT; Distributed Ledger Technology) was designed as a means of decentralization to collect blockchain data without the involvement of third parties. A global application programming interface for indexing, archiving, and organizing data can be accessed via the GraphQL programming language.

The introduction of The Graph mainnet enabled the team to implement decentralization of applications, creating a network of hosting services where decentralized apps can operate no matter what and blockchain data is accessible. With open and public APIs called subgraphs, numerous applications can operate on the network, while The Graph manages the nodes of thousands of apps.

The Graph network makes use of nodes to run the GRT mainnet and provides the perfect environment for dApps and developers, while indexers, curators, and delegators facilitate the trade of GRT tokens as a token useful in the transaction. GRT is the official cryptocurrency of The Graph network and is used to allocate resources throughout the network.

Further details on The Graph website

The Graph Technology

The Graph Protocol’s significance within the wider crypto economy is increasing. Since Decentralized Finance (DeFi) is gaining popularity, the Graph Protocol is becoming more prevalent. The Graph protocol helps developers and network participants make public and open applets for building subgraphs for various dApps, querying, indexing, and obtaining data. In April 2021 alone, The Graph hosted service processed 20 billion queries.

The network is supported by the Graph Node that is primarily a Node for scanning the blockchain database. The developers and network participants can use GRT tokens to pay for admission to Creating and using a connected subgraph, and nodes. Developers can specify the manner in which data should be utilized by dApps by mapping the data source with an index. Indexers create a decentralized market for queries where end users can trade for a GRC token to gain access to services available on the platform.

The network is designed to encourage participation for validating and indexing services in exchange for GRT tokens. API developers are offered incentives to continually improve their services and offer data with accuracy. The Graph Network is where you describe see subgraphs, along with Ontology Network. In the Array Network hierarchy, Node Operators are entitled to GRT tokens in return for indexing and querying nodes. Network users can develop and install applications on Ethereum, IPFS, and PoS systems by means of GraphQL middleware, which will be implemented in the future.

Legitimacy Screening of The Graph

Yaniv Tal, Brandon Ramirez, and Jannis Pohlmann founded The Graph in 2018. Tal was inspired by the difficulty he faced when creating new dApps on the Ethereum network. Working with the rest of the team, Tal created The Graph with the goal of designing and launching the first decentralized indexing app on the market, as there was none of its kind at that time.

The Graph raised a total of $12 million through a public token sale as well as a private sale, to which financial institutions Coinbase Ventures, DCI, and Framework Ventures contributed. Coinbase Capital also invested $2.5 million in the Graph.

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

Yes, The Graph crypto project does align with Islamic values as it is a network indexing protocol for accessing networks like Ethereum and IPFS. Anyone can make and publish open APIs, known as subgraphs, making data easily obtainable. There is nothing against Islam about such a technology. 

Financial Screening of The Graph:

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

GRT Token Screening for Shariah Compliance

Token Type: ERC-20

Token Uses: Payments, Work, Vote

A GRT token is locked up by protocol participants (Indexers, Curators, and Valudators) to provide indexing and curating services to the network. The more active Indexers, Curators, and Validators in the network are, the more money they make in proportion to their work and the level they stake on the graph platform.

A substantial number of consumers will have started using Indexers to communicate with Indexers by paying for their metered usage using GRT.

Indexers will be capable of staking Graph tokens (GRT) to take part the network and anticipate fees and rewards for producing queries.

Total GRT supply at the Token Sale launch will be 10 billion GRT tokens, and new token issuance in the form of indexing rewards will start at 3 annually and is subject to future independent technical governance.

This token has a utility that is permissable under Shariah so The Graph’s GRT token is considered halal.

Is Staking GRT Halal?       

Staking The Graph is rewarded by querying fees in this network and hosting subgraph transactions. As far as we can see this reward mehanism does not contain Riba, Gharar, or Maisir and is therefore halal to stake GRT.

What Does The Muslim Crypto Community Think of GRT?           

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

Sharlife considers The Graph: GRT 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 The Graph Halal: Is GRT Crypto Coin Halal?

Yes, The Graph: GRT crypto coin is Halal as it is an open source and decentralized schema for indexing blockchain information. It is designed to enable querying on the Ethereum network. The Graph’s network also enables developers to construct various APIs known as subgraphs for particular queries. This technology is not against Shariah guidelines so Muslims may invest, trade and stake GRT 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.