HALAL Screening Cryptocurrency
Is Cardano Halal?
Complete Shariah Compliance Screening of Cardano to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Cardano
ADA, also known as Cardano, is a type of cryptocurrency that operates on its own blockchain. Think of it like digital money that you can use to buy things or invest, but it’s built on a platform that aims to be more secure and efficient than others. What makes ADA special is its focus on sustainability and scalability, meaning it can handle a lot of transactions without slowing down, which is super important as more people start using it.
What really sets Cardano apart is its unique approach to development. It uses a method called "proof of stake," which is like a more eco-friendly way of validating transactions compared to traditional methods that consume a lot of energy. Plus, Cardano is built with a strong emphasis on research and peer-reviewed technology, so it’s designed to be reliable and innovative. This combination of being environmentally friendly and scientifically backed makes ADA an exciting player in the crypto world!
Transparent and Credible Team
The report identifies Charles Hoskinson, Jeremy Wood, Aggelos Kiayias, and Frederik Gregaard as key team members, detailing their backgrounds and roles. Hoskinson's involvement with Ethereum and IOHK, and Kiayias's development of the Ouroboros protocol, suggest a credible team with relevant experience. Score: 85
Clear Use Case or Purpose
The report clearly states Cardano’s purpose as a third-generation blockchain platform focused on sustainability, scalability, and interoperability. It aims to build a more inclusive digital future by driving the adoption of blockchain technology. The project's layered architecture, proof-of-stake consensus mechanism, and support for smart contracts demonstrate a well-defined and legitimate use case. Score: 90
Absence of Fraudulent Behavior
The report mentions third-party audits of smart contracts. Cardano also ensures regulatory compliance through transparency and robust KYC and AML procedures. There's no direct evidence of fraudulent behaviour and the Cardano Foundation has released sustainability indicators that comply with MiCA regulation. These factors suggest a high level of legitimacy and a low risk of fraudulent activity. Score: 90
Ethical Practices
Cardano emphasizes transparency, community-driven governance, and regulatory compliance. It promotes responsible innovation in the blockchain and cryptocurrency space. The project has implemented measures like Atala Prism for secure and private identification, and Cardano Improvement Proposals (CIPs) for community governance. However, there have been criticisms regarding exaggerated TPS claims. Score: 80
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Cardano 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.
Cardano 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
Cardano 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 Cardano Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Cardano Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform