HALAL Screening Cryptocurrency
Is Klaytn Halal?
Complete Shariah Compliance Screening of Klaytn to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Klaytn
KLAY is the native cryptocurrency of the Klaytn blockchain, which is designed to make it super easy for businesses and developers to create and use decentralized applications (dApps). Think of it as a digital currency that helps power a platform where people can build apps that run on blockchain technology, making them more secure and transparent. KLAY can be used for transactions within these apps, and it also allows users to participate in the network by staking their coins to help maintain the system.
What makes KLAY unique is its focus on user experience and scalability. Unlike some other blockchains that can be slow and complicated, Klaytn aims to provide fast and smooth interactions, making it more appealing for everyday users and businesses alike. Plus, it has strong partnerships with major companies, which helps it gain traction and credibility in the crypto world. So, KLAY is all about making blockchain technology accessible and efficient for everyone!
Transparent and Credible Team
The report identifies key team members like Jaesun Han and Dr. Jason Han, detailing their backgrounds and experience in computer science and blockchain technology. This indicates a transparent team with credible history. Score: 85
Clear Use Case or Purpose
Klaytn aims to facilitate the mass adoption of blockchain technology by providing a business-friendly development platform and a public blockchain network designed to support various sectors, with a focus on the metaverse. This demonstrates a clear and legitimate use case. Score: 90
Absence of Fraudulent Behavior
Klaytn has undergone smart contract audits by Quantstamp. The platform also uses the Istanbul Byzantine Fault Tolerance (IBFT) consensus algorithm which reduces the risk of double spending. The report mentions that Klaytn promotes transparency by requiring Consensus Nodes to support open validation. These factors suggest an absence of fraudulent activity. Score: 85
Ethical Practices
Klaytn emphasises transparency with open validation for consensus nodes and detailed documentation. The project promotes a business-friendly development platform. There is no explicit mention of the project being unethical. Score: 80
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Klaytn 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.
Klaytn 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
Klaytn 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 Klaytn Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Klaytn Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform