HALAL Screening Cryptocurrency
Is Bittensor Halal?
Complete Shariah Compliance Screening of Bittensor to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Bittensor
TAO is a cryptocurrency that focuses on creating a decentralized platform for smart contracts and applications. Think of it as a digital currency that allows people to build and run apps without needing a middleman, like a bank or a big tech company. This means that transactions can be faster, cheaper, and more secure, making it easier for developers to create innovative solutions.
What makes TAO unique is its emphasis on scalability and efficiency. It uses a special technology called "delegated proof of stake," which helps the network process transactions quickly while keeping energy consumption low. This means that as more people use TAO, it can handle the increased demand without slowing down or becoming expensive. So, it’s like having a super-fast highway for digital transactions that can grow as more cars (or users) join in!
Transparent and Credible Team
The research identifies the co-founders, Jacob Steeves and Ala Shaabana, as well as other team members like Jacqueline Dawn and Saeideh Motlagh. It also details Jacob Steeves' background in open-source software and previous work at OpenAI and Google, and Ala Shaabana's role in the technical development. The team's experience in blockchain, AI, and marketing is highlighted. This indicates a reasonably transparent team with a credible history. Score: 75
Clear Use Case or Purpose
The research clearly states that Bittensor's goal is to create a decentralized machine learning network leveraging blockchain technology, incentivizing nodes to produce valuable machine learning models using the TAO token. The network consists of servers and validators that work together to analyse text data. This demonstrates a clear and legitimate use case. Score: 90
Absence of Fraudulent Behavior
The research mentions that TAO was distributed via a fair launch with no pre-mined tokens. It also states that Uphold performed due diligence which included ensuring the source code is open-source, audited and peer-reviewed. There is a mention of a security exploit where $8 million worth of TAO was stolen, but the response from the OpenTensor Foundation (OTF) and subsequent security measures could suggest no major fraudulent intent. The existence of the BitAudit subnet also suggests a focus on security, though it does not directly audit TAO. Score: 65/100
Ethical Practices
The project emphasizes the importance of conducting due diligence before trading. It also aims to democratize AI by making it accessible to a wider range of developers and researchers. The project's open-source nature and emphasis on transparency are also points that suggest ethical practices. The post-mortem report of the $8m security exploit does suggest a commitment to transparency and improving security. Score: 70
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Bittensor 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.
Bittensor 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
Bittensor 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 Bittensor Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Bittensor Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform