Is Zilliqa Halal: Is ZIL Coin Halal?
In this article we do a complete shariah screening of Zilliqa to determine if ZIL coin is a halal or haram cryptocurrency. The short answer is yes, Muslims may trade and invest in ZIL, but have a read and let us know your thoughts.
What is Zilliqa or ZIL Coin?
The Zilliqa project started in Singapore in 2017 by a number of researchers from the National University of Singapore. Initial team members included Xinshu Dong, Yaoqi Jia, Amrit Kumar, and Prateek Saxena (who had previously worked with Loi Luu, CEO and Co-Founder of Kyber Network), among others. They were responsible for incorporating Zilliqa Research in June 2017.
Zilliqa is a blockchain platform designed to scale limitations seen in other networks. It is designed with a sharded design, which facilitates simultaneous cross-chain transactions to accelerate the procedure.
Aside from scalability, Zilliqa provides smart contract creation support with its native programming language, Scilla. The network reaches a consensus around transactions and contract executions through a hybrid Proof-of-Work-BFT mechanism.
Further details on Zilliqa website
Who Invests In Zilliqa?
Myriad Capital Management
One Block Capital
SEED Venture Capital
The Hive Index
Is Zilliqa Halal: Is ZIL Coin Halal? We’d Love to Hear Your Thoughts
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Zilliqa’s unique architecture focuses on increasing scalability via the process of sharding. While most current blockchain applications utilize all nodes on the network to process every transaction, Zilliqa divides the network into a series of several shards, each processing a subset of transactions and needing only some miners working on those transactions at any given time.
Sharding is also used in smart contract processing, as just a tiny fraction of the total network resources are used for performing any computation. Thus, Zilliqa anticipates its transaction throughput to increase roughly twice as much with each addition of a few thousand miners.
To participate in a blockchain or use sharding to prove ownership, users must show proof of work. However, that isnt sufficient to reach concensus. Zilliqa uses a consensus protocol known as Practical Byzantine Fault Tolerance. In this protocol, nodes are grouped with a “leader” that is responsible for broadcasting both transactions and decisions.
Legitimacy Screening of Zilliqa
The project was started in mid-2017 by a group of researchers from a well respected university, some of whom have created other related companies. It also has an impressive list of backers, investors some of whom are detailed above.
This gives us the confidence to confirm that Zilliqa 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 Zilliqa project aligned with Islamic values?
Yes, Zilliqa: ZIL coin’s project does align with Islamic values as it is a layer 1 like Bitcoin and Ethereum that uses its own blockchain for launching Dapps, but using its native cryptocurrency. Access to the project’s blockchain is open to everyone and the ecosystem is neutral from a sharia perspective. There is nothing inherently against Islamic guidelines with this project.
Financial Screening of Zilliqa:
Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. Zilliqa 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.
ZIL Token Screening for Shariah Compliance
Token Type: Native
Token Uses: Payments
You can use the ZIL token to participate in all services and applications that are dApp-based on the Zilliqa blockchain. You can also pay for products and services with NFTs, buy and sell them, and more.
Is Staking ZIL Coin Halal?
Yes, staking ZIL coin is Halal. The ZIL token is the reward for miners, who relinquish their computational power to the public blockchain network, on the Zilliqa network. Shuttering those tokens happens through a process known as staking. The staking method by the originating protocol complies with the fatwas of Islamic law. Users can be rewarded by transaction fees.
What Does The Muslim Crypto Community Think of ZIL Coin?
Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks Zilliqa: ZIL coin is a Halal digital asset based on its Shariah complaince screening.
Marhaba DiFi‘s Shariah governance board also beleives Zilliqa: ZIL coin is halal.
Sharlife considers Zilliqa: ZIL coin 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 Zilliqa Halal: Is ZIL Coin Halal?
Yes, Zilliqa: ZIL coin is Halal as blockchain project was built to support and scale decentralised apps, from financial services to NFT marketplaces, none of which contradict Islamic rulings. Muslims may invest, trade and stake ZIL coin.
We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.