Is Waves Crypto Coin Halal

In this article we do a complete Shariah screening of Waves determine if it is a halal or haram cryptocurrency. The short answer is yes, Muslims may trade and invest in Waves coin, but have a read and see if you are comfortable with our assessment first and of course let us know if you have a different view.

What is Waves?

Waves is a decentralized blockchain network that allows users to create and access decentralized applications. On-chain governance, Formal Verification for smart contracts, and a modified version of Proof-of-Stake (PoS) called Leased PoS help create network consensus.

Alexander Ivanov founded Waves network in 2016 as a successor to Bitcoin based upon the lessons learned from that generation of blockchain technologies. The team established a network with an emphasis geared toward resolving issues with blockchain technologies that had already emerged. Waves, therefore, strove to remain fast, scalable and secure.

In 2017, Waves began a partnership with Microsoft Azure and became an official partner with Deloitte. It also implemented a new consensus protocol, Waves-NG, based on Cornell professor Emin Gün Sirer’s Bitcoin-NG proposal, towards the end of the year. Waves-NG increased transaction throughput up to 100 transactions per second. In 2018, the company released a new mobile application that helped its adoption across mobiles and tablet users.

Further details on Waves website

Who Invests In Waves?

The Hive Index

Waves Technology

Waves is a general-purpose blockchain platform that uses on-chain governance and blockchain-based programming to offer formal verification. It is an Open Permission-Proof-of-Stake (LPoS) blockchain, in which participants can act as forgers (validators) if they hold a certain amount of tokens.

Adapted from Emin Ghenan Sirer’s Bitcoin-NG proposal, Waves-NG protocol was implemented on mainnet in 2017 to increase transaction throughput and reduce latencies. Unlike Ethereum ($ETH), Waves transactions have fixed fees and no variable gas-like requirements.

Waves also has its own native desktop and mobile clients for accessing certain platform features, including the creation of tokens, operations with them, sending them and exchanging tokens, and renting WAVES. Waves Keeper, a browser plug-in similar to MetaMask’s Ethereum, enables users to access Waves-enabled websites and dApps.

Waves DEX allowed a decentralized market for crypto-to-crypto and crypto-to-fiat trading. But performance issues and intermittent connection problems led Waves to shut down its Waves DEX exchange platform, which developed into Waves Exchange. The new iteration will retain mostly the importance of the platform’s decentralized storage function while reducing issues related to tech support.

Legitimacy Screening of Waves

After reaching the milestone of 2 million wallets in 2022, the Waves blockchain has experienced continued growth since, with dozens of successful projects launched on the platform, such as Waves.Exchange, every unit of Vires.Finance, and WavesDucks. With access to more than 250 validator nodes and the transfer speed of the Waves blockchain increasing by thousands of transactions per second, Waves boasts throughput beyond expectations.

The current total value locked (TVL) in the network is over $2B, and only a fraction of the network’s tokens are locked in the staking process. This gives us the confidence to confirm that Waves 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 Waves project aligned with Islamic values?

Yes, Waves project does align with Islamic values. The main aim of this project is to provide liquidity to the market by using a swap mechanism as described earlier and ool funds together. There is nothing anti Islamic about such a technology.

Financial Screening of Waves:

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

WAVES Token Screening for Shariah Compliance

Token Type: Native

Token Uses: Payments

The consensus mechanism also includes an integration of community monetary policy that is devised by coin forgers, and an activation mechanism that allows signers to vote on new features becoming launched onto the network.

This token has a utility that is permissable under Shariah so Waves token is considered halal.

Is Staking Waves Halal?       

There is no mining or staking in this system so we can move on to the academic and scholarly opinions

What Does The Muslim Crypto Community Think of Waves?           

Marhaba DiFi‘s Shariah governance board also beleives Waves is halal.  

Sharlife considers Waves 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 Waves coin is a Halal digital asset based on its Shariah complaince screening.

Islamic Finance Guru (IFG) believes Waves is a halal cryptocurrency based on its method of 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 Waves Crypto Halal?

Yes, Waves crypto coin is Halal as its platform provides tools designed specifically for the purpose of constructing, operating, and running decentralized applications. And hosts numerous applications and diverse use cases, including a DEX and algorithmic stablecoins, to DAOs, encrypted messaging, and gaming. This is not against Shariah guidelines so Muslims may invest, trade and stake Waves 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.