HALAL Screening Cryptocurrency
Is Hedera Halal?
Complete Shariah Compliance Screening of Hedera to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Hedera
HBAR is the native cryptocurrency of the Hedera Hashgraph network, which is designed to be a super-fast and secure platform for building decentralized applications. Think of it as a digital currency that helps power a new kind of internet where transactions can happen almost instantly and at a very low cost. Unlike traditional blockchains, Hedera uses a unique technology called Hashgraph, which allows it to process thousands of transactions per second while maintaining high security and fairness.
What makes HBAR stand out is its focus on speed and efficiency. While many cryptocurrencies can take a long time to confirm transactions, Hedera's technology ensures that users can send and receive funds almost immediately. Plus, it’s governed by a council of major companies, which adds a layer of trust and stability. So, if you're looking for a crypto that combines speed, security, and a solid governance model, HBAR is definitely worth checking out!
Transparent and Credible Team
The Hedera team includes Dr. Leemon Baird and Mance Harmon, with clear backgrounds in computer science, cybersecurity, and leadership. The team is also supported by a diverse group of global leaders through the Hedera Governing Council. This suggests a transparent and credible team. Score: 80
Clear Use Case or Purpose
Hedera's whitepaper clearly explains its purpose as a stable, trustworthy network for decentralised, enterprise-grade applications, using HBAR to power these applications and secure the network. This indicates a clear and legitimate use case. Score: 90
Absence of Fraudulent Behavior
Hedera has undergone multiple audits by third-party firms such as FP Complete, Quantstamp, Cure53, and Hacken, which indicates an effort to verify the legitimacy of the platform. These audits address security concerns and suggest the absence of fraudulent activity. Score: 90
Ethical Practices
Hedera is committed to complying with existing regulations and evolving policies. The project's focus on transparency, decentralised governance, and community engagement, as well as its technical documentation, suggest ethical practices. Score: 85
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Hedera 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.
Hedera 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
Hedera 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 Hedera Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Hedera Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform