HALAL Screening Cryptocurrency
Is IOTA Halal?
Complete Shariah Compliance Screening of IOTA to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is IOTA
IOTA is a type of cryptocurrency designed specifically for the Internet of Things (IoT), which is all about connecting everyday devices to the internet. Imagine your fridge talking to your grocery store to automatically order milk when you're running low! IOTA allows these devices to communicate and transact with each other without needing a middleman, making it super efficient and cost-effective. It uses a unique technology called the Tangle, which is different from traditional blockchains. Instead of relying on miners to validate transactions, every time you make a transaction, you help confirm two others. This means no fees and faster transactions!
What makes IOTA really special is its focus on enabling machine-to-machine communication. This opens up a world of possibilities, like smart cities where traffic lights adjust based on real-time data or energy grids that optimize power usage automatically. Plus, because it doesn’t have transaction fees, it’s perfect for small, frequent transactions that are common in IoT applications. So, in a nutshell, IOTA is all about making our devices smarter and more connected, paving the way for a more efficient future!
Transparent and Credible Team
The report identifies the co-founders and their backgrounds. While there have been some internal disputes and departures, the team's initial development and the formation of the IOTA Foundation are documented, indicating a level of transparency. However, the disputes and departures may slightly reduce confidence. Score: 75
Clear Use Case or Purpose
IOTA is designed for the Internet of Things (IoT), aiming to facilitate microtransactions and data transfers efficiently. It uses a DAG structure (Tangle) for scalability, which is a clearly defined purpose.. The report indicates a clear and legitimate use case. Score: 90
Absence of Fraudulent Behavior
The report mentions third-party audits by Zokyo, which gave IOTA Smart Contracts a perfect score. It also mentions internal audits and cybersecurity measures. While there are past criticisms about misleading claims, there's no indication of outright fraudulent activity. Score: 85
Ethical Practices
The report indicates that IOTA is Shariah-compliant, certified by the Cambridge Institute of Islamic Finance. It also mentions the implementation of a Shari’a Governance Framework. These demonstrate a commitment to ethical practices, though some past criticisms about marketing practices do reduce this score. Score: 80
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IOTA 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.
IOTA 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
IOTA 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 IOTA Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
IOTA Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform