Role of blockchain in enhancing islamic finance

The Role Of Blockchain In Enhancing Islamic Social Finance

Are you a Muslim investor skeptical about using blockchain cryptocurrency to support your finances under the Islamic Social Finance system?

Incorporating the Blockchain system into Islamic social finance will prove to be a game-changer as it is more reliable, has infinite possibilities, and ensures security. Blockchain provides its users with a decentralized database system with distributed ledgers available for everyone. The mechanism of the Blockchain database is that the stored data in the Blockchain system becomes impossible to change and accessible to everyone worldwide once held. 

You might be an Islamic Investment enthusiast, a Muslim VC, or a businessman. Our religion has always encouraged businesses and trading under reasonable profit limits. 

You might be looking for halal ways to make investments into the win-win Crypto world ever since it has started but might be hesitant due to crypto promoting haram practices such as financial speculation, gambling, contractual ambiguity (exploitation of weak party), and other haram practices. 

We know millions of Muslim investors seek clarification from the Islamic scholars and ask if there are any Islamic Crypto-coins and Blockchain systems built in compliance with Islamic Shariah Laws as an alternative solution. 

Benefits of Adopting Blockchain into the Islamic Social Finance System

Various social finance systems, including Islamic Social finance, are initiating the adaptation of the Blockchain system to maximize benefits for the financial services industry as the current one is outdated with gaps, extra-charges, and loopholes in the security system. A few of the impactful benefits of Blockchain are elaborated below:

Rapid Settlements | Least Hectic & no more waiting to receive Money

Have you ever faced hurdles and endless waiting just to receive payments from international clients from another country?

Blockchain receives payments from anywhere, in no time without the hurdles of verification, lengthy forms to fill in, manual identity-card proofs, and no other additional charges. 

Also Read: What are the Listing Requirements for NASDAQ?

Better Capital | Reduction in overall charges of financial services 

Blockchain removes the interference of intermediary parties like banks and governments, making peer-to-peer monetary transactions more secure and secluded. Additionally, one of the drawbacks of traditional finance and banking systems is the service charges, which can be reduced significantly via the Blockchain System. 

Reduced Counterparty Risks in Monetary Transactions 

Reduced counterparty risks can make robust the e-commerce marketplace, traditional trading, worldwide imports, and exports and build trusted business relationships between vendors, retailers, sellers, and buyers. with fewer risks of a counterparty not meeting contractual obligations and extra charges.

Smart Contracts 

Smart contracts will execute automatically once they meet the preset conditions for qualification. Many banks are already using smart contracts, which are highly customized, firmly rooted with the country’s law, and in compliance with any regulatory social finance system to make it dedicated to specifically targeted consumers.

Increased Transparency with a Highly Regulated System 

Blockchain offers real-time tracking, introducing enhanced transparency in your regulations and monitoring of financial services by banks.

Better Financial Solutions for Crisis Management

The ultimate aim of Blockchain and Cryptocurrency was to empower both the population and the cryptocurrency with fiscal autonomy. The Bitfinex Hack is a classic example of overcoming hacking attacks, debts, and protection from going bankrupt. 

The proposed solution had developed a trade-friendly Recovery Right Token (RRT) with a $1 value seen as an IOU Token for the loss cost due to uncertain hacking of Bitfinex. There were two probabilities proposed to the customers. 

 

1st: Trade the RRT in the marketplace right now if they don’t believe in the recovery of Bitfinex. 

2nd: The customer trusts and waits until the recovery of Bitfinex and makes profits from the token later by exchanging it for equity. Half of the token took the 2nd decision to support Bitfinex in times of loss.

Reduced Human-Errors in Audits

Due to high transparency with real-time tracking, Blockchain provides immensely detailed audit trails eliminating the chances of handling errors. 

Everything About Islamic Social Finance | In Compliance with Shariah Law

Blockchain technology’s adaptation in Islamic social finance can tremendously support financial and asset transactions to reduce interest rates. Blockchain tech has loads of benefits to offers such as:

  • Reduction in Interest Rates with Blockchain-based Smart Contracts 
  • Access to critical data via Cloud Storage 
  • Development of Islamic Digital Currencies 

Resilience in Islamic Social Finance & Revolutionary Benefits of Blockchain-based Cryptocurrency 

Islamic Social finance is against financial exploitation, speculation, high-interest rates, and any fiscal concept that exploits the weaker party seeking support or benefit in times of need with limited or low income. The Islamic Finance system is the best social finance system as it is deeply rooted in the idea of philanthropy and cooperative financial solutions serving socially and commercially.

Why should I invest in Islamic Cryptocurrency?

By the end of 2018, the massively growing Islamic Banking and finance sector worldwide was estimated to be worth up to 2.5 billion dollars. With the rapidly evolving commercial banking sector, it’s time for Islamic Social Finance to adapt to the next era of cryptocurrency developed by Blockchain databases complying with Shariah laws.

Caizcoin | The First-ever Islamic Cryptocurrency 

Caizcoin, the first Islamic Cryptocoin, is operated via Caizchain, the world’s first Islamic Blockchain for Muslim investors, VCs, Businessmen, SMBs, and anyone involved or interested in the cryptocurrency market. 

Conclusion on incorporating Blockchain with Islamic Social Finance 

Islamic Social Finance offers benefits to the Muslim community worldwide with the adaptation of Blockchain. It will provide a platform with infinite opportunities in the most halal way possible. Islamic Cryptocurrency and Islamic version Blockchain like Caizcoin & Caizchain will allow Muslims around the globe to be competitive in the Crypto market with an adequate balance between Deen & Dunya. 

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