HALAL Screening Cryptocurrency
Is Beam Halal?
Complete Shariah Compliance Screening of Beam to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Beam
BEAM is a type of cryptocurrency that focuses on privacy and security. Think of it as a digital form of money that allows you to make transactions without anyone being able to see who you are or what you’re doing. It uses a special technology called Mimblewimble, which helps keep your financial information private while still allowing you to send and receive funds. This means you can enjoy the benefits of digital currency without worrying about your personal data being exposed.
What makes BEAM unique is its strong emphasis on privacy and user control. Unlike many other cryptocurrencies, which can leave a trail of your transactions for anyone to see, BEAM ensures that your financial activities remain confidential. It also allows users to have more control over their data, giving them the option to choose what information they want to share. So, if you value your privacy and want a secure way to handle your money online, BEAM could be a great option!
Transparent and Credible Team
The Beam cryptocurrency was founded by Alexander Zaidelson in 2018. He has a Master's in Applied Linguistics, an MBA, and a BA in Philosophy. He has founded Wikitup, served as VP of Product Management at WeFi, and has experience at CIRTech Fund. He also has advisory roles at various startups. This demonstrates a transparent team with a credible history, so a good score is warranted.
Score: 80
Clear Use Case or Purpose
Beam is designed to be a confidential cryptocurrency based on the Mimblewimble protocol, focusing on privacy and scalability. It supports confidential assets, atomic swaps, and decentralized applications (dApps). The whitepaper clearly outlines its purpose, design, and technical details. According to "Islamic Scholars Opinions" a valid asset has a bona fide benefit, a genuine purpose, and it is lawful to use. Beam's use case aligns with this.
Score: 90
Absence of Fraudulent Behavior
Beam has undergone third-party security audits by Least Authority and SmartDec. These audits assessed the Mimblewimble and Lelantus protocols, respectively. There is no evidence of scams or rug-pull risks. However, it is noted that there was a recent phishing scheme that led to loss of tokens. This does not reflect on Beam's legitimacy itself, but highlights a security vulnerability.
Score: 85
Ethical Practices
Beam emphasizes privacy, security, and regulatory compliance. It has implemented opt-in auditability features and is proactive in navigating regulatory challenges. It also exceeds AML, KYC, and SARs regulatory requirements. These practices demonstrate an ethical approach to development and operation.
Score: 85
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Beam 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.
Beam 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
Beam 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 Beam Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Beam Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform