HALAL Screening Cryptocurrency
Is Chainlink Halal?
Complete Shariah Compliance Screening of Chainlink to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Chainlink
LINK, or Chainlink, is a type of cryptocurrency that connects smart contracts on the blockchain to real-world data. Think of it as a bridge that allows these digital contracts to access information from outside their own network, like stock prices, weather data, or even sports scores. This is super important because many smart contracts need accurate, up-to-date information to function properly, and Chainlink makes that possible.
What makes Chainlink unique is its decentralized network of "oracles." These oracles are like trusted messengers that gather and verify data from various sources before sending it to the smart contracts. This means that instead of relying on a single source of information, Chainlink pulls from multiple places, making it more reliable and secure. So, in a nutshell, Chainlink helps smart contracts interact with the real world in a trustworthy way, which opens up a lot of exciting possibilities for businesses and developers!
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Transparent and Credible Team
The Chainlink team includes Sergey Nazarov, Steve Ellis, and Ari Juels, all with strong backgrounds in software development, technology, and academia. This indicates a transparent team with a credible history.
Score: 85
Clear Use Case or Purpose
Chainlink aims to provide a decentralized oracle network, enabling smart contracts to access reliable, real-time external data. This provides a clear and legitimate use case.
Score: 90
Absence of Fraudulent Behavior
Chainlink's smart contracts have been audited by Callisto Network. While some vulnerabilities were found, they were addressed. There have been pump and dump allegations and fraud exposés, but these claims are largely unsubstantiated and often countered by the community and Chainlink’s developers.
Score: 75
Ethical Practices
Chainlink focuses on providing reliable decentralized data feeds and does not make extravagant claims about guaranteed returns. The project aims to enhance transparency and security in blockchain applications. However, there have been allegations of price manipulation.
Score: 75
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Chainlink 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.
Chainlink 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
Chainlink 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 Chainlink Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Chainlink Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform