HALAL Screening Cryptocurrency
Is Arbitrum Halal?
Complete Shariah Compliance Screening of Arbitrum to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Arbitrum
ARB, or Arbitrum, is a type of cryptocurrency that operates on the Ethereum blockchain. Think of it as a way to make transactions faster and cheaper. While Ethereum is great for building decentralized applications, it can sometimes be slow and expensive due to high traffic. Arbitrum helps solve this problem by processing transactions off the main Ethereum chain, which means you can send and receive tokens more quickly and with lower fees. It’s like taking a shortcut to avoid traffic!
What makes Arbitrum unique is its focus on scalability and efficiency. It uses a technology called "rollups," which bundles multiple transactions together before sending them to the Ethereum network. This not only speeds things up but also reduces the amount of data that needs to be processed on Ethereum itself. So, if you’re looking to use Ethereum-based applications without the hassle of high costs and slow speeds, Arbitrum is a fantastic option that makes everything smoother and more user-friendly!
Transparent and Credible Team
The research identifies the team members and founders including Ed Felten, Steven Goldfeder, and Harry Kalodner. Their backgrounds at Princeton University and in government provide credibility. Score: 80
Clear Use Case or Purpose
Arbitrum is a Layer 2 scaling solution for Ethereum, using optimistic rollups to improve transaction speed and reduce costs. The ARB token is used for governance . Score: 100
Absence of Fraudulent Behavior
The project has undergone audits by Hacken and Cyberscope. These audits focus on smart contract security and adherence to industry standards. Score: 90
Ethical Practices
Arbitrum aims to enhance decentralisation, foster community engagement and ensure transparency. The project has a comprehensive governance structure. Score: 90
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Arbitrum Halal Project Screening
- Are the project’s purpose and operation Shariah Compliant.
- Does the project operate ethically and transparently, without harm to society.
- Does the project promote positive societal or environmental outcomes.
Arbitrum Financial Screening
- Does the revenue involve Riba (interest), Gharar (excessive uncertainty), or Haram activities.
- What red flags are hidden within the projects finances and are within permissible limits.
- Types of revenue generation activities and the percentage that may be Riba or interest based.
- Audits from reliable sources
Arbitrum Token Screening
- Is the Token governance fair and ethical?
- Are profit-sharing mechanisms (e.g., staking rewards, dividends) compliant with Islamic Finance?
- Does the token’s design, or unlock schedule raise unethical concerns?
- Halal underlying asset, and free from impermissible elements
Is Staking Arbitrum Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Arbitrum Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform