Is Vechain Halal: Is VET Coin Halal?
In this article we do a complete shariah screening of Vechain cryptocurrency, to see if VET coin is halal or haram. The simple answer is yes, Muslims may trade, invest and stake VET crypto, but please read on to find out what the Muslim crypto community has to say about it.
What is Vechain: VET?
VeChain is a smart contract platform that specializes in supply chain management solutions. One of its aims is to streamline information flow for complicated supply chains using distributed ledger technology.
The VeChain product claims to give authorized stakeholders with a complete sight of critical information relating do a product and its associated business procedures (e.g. storage, transfer, distribution, and authenticity) and enhance industry transparency.
Further details can be found on Vechain website.
Who Invests In Vechain?
Myriad Capital Management
Token Research Group
Is Vechain Halal: Is VET Coin Halal? We’d Love to Hear Your Thoughts
Sharing the collective wisdom of thousands of Muslim crypto traders and investors.
VeChain’s blockchain is based on a modified version of the Ethereum codebase. VeChain particularly optimizes the Thor blockchain (known as the base) for enterprise use cases. Thor is the main layer of the VeChain blockchain, which serves as a basic communication protocol, information clipboard, and data storage protocol.
Thor smart contract creation is planned with visualization tools for VeChain, allowing the application to run in multiple languages. Additionally, VeChain Steam IDs are the key component of the VeChain blockchain platform.
Physical goods that are tracked by VeChain are assigned digital identities created in SHA256 form with NFC, RFID, and QR codes. VeChain uses a Proof of Authority (PoA) consensus mechanism based on masternodes that validate operations.
Legitimacy Screening of Vechain
Legitimacy screening ensures that the digital asset is a genuine project and not a scam. Based on the details discussed above we can confirm Vechain as a project has legitimacy in terms of Shariah.
Is Vechain project aligned with Islamic values?
Yes, VET does align with Islamic values so it has a big tick as far as the project screening is concerned. VeChain is a blockchain platform that focuses on promoting supply chain management and business procedures. The ecosystem does not include any items that could bring about Islamic Shariah issues.
Financial Screening of VET Coin:
Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. 1Inch 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.
VET Token Screening for Shariah Compliance
VeChain Foundation began distributing the VeChain Network Token (VET) in early 2017. Based on ERC-20 tokens, the VET functioned on Ethereum. VET was then terminated in favor of VeChain Thor, the mainnet deployment of VeChain.
Holders of VEN token were given an opportunity to exchange VEN for VET at an exchange rate of 1 100 VEN. The VEN token is not active any more.
VeChain Token (VET) and VeChainThor Energy (VTHO) are the two tokens used for VeChain’s network. VeChain Token chiefly serves to transmit value across VeChain’s network, while VeChainThor Energy is used to support VeChain smart contracts as energy or “gas.”
Based on this the token could be considered halal.
Is Staking VET Halal?
Contributing to staking will earn a profit from the rewarding system. The reward system is permissible because the reward system does not have any Riba, interest, or usury. Therefore, VET staking is Halal.
What Does The Muslim Crypto Community Think of Vechain?
Marhaba DiFi‘s Shariah governance board also beleives Vechain: VET coin is halal.
Sharlife considers VET as a halal cryptocurrency based on the five areas assessed for Shariah complaince screening.
IFG (Islamic Finance Guru) believes Vechain: VET is a halal cryptocurrency based on its method of Shariah complaince screening.
Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks Vechain: VET Coin 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 Vechain Halal: Is VET Coin Halal?
A store of value coin and ecosystem called VECHAIN-Thor, through its VeChainThor platform, has VeChain (VET) and VeThor Power (VTHO) coins. The whole platform’s voting ecosystem runs on proof of stake consensus mechanism, which is allowed. The staking and reward system in the VeChainThor network are impartial. Consequently, there’s no issue over the entire network and its tokens. We feel Vechain: VET is Halal and compliant with Shariah rulings
We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.
vechain the dealing with selling wines. its not halal.
You’re partially correct, companies involved in buying, selling, producing alcohol are not halal. However, Vechain does not buy, produce or sell alcohol. It’s smart contract technology is used by a wine importing company (Shanghai Waigaoqiao Direct Imported Goods Co) to track the authenticity of its imported products (wines).
Any investment in Vechain is not an investment in Shanghai Waigaoqiao Direct Imported Goods Co. One has developed blockchain technology to improve supply chain efficiency and the other uses this technology to improve its imports (supply chain).
Additionally, the same technology could be used to track halal meat from the farm to your local butchers. A haram use of a technology does not necessarily make the technology itself haram. Hope that helps.