Gartner estimates the blockchain industry will generate nearly $3.1 trillion in business value by 2030, with blockchain-based systems potentially managing up to 20% of the global economic infrastructure. Driven by the immense potential of this technology, many platforms and solutions are creating unique avenues to bring new consumers to the frontline of Web3 and Fintech developments. HAQQ Network is one of such solution that has introduced a remarkable fusion of Islamic finance principles with next-gen technology.
The network effectively integrates Shariah compliance into digital finance, setting new ethical standards in the crypto and blockchain landscape. The network’s native currency, the Islamic Coin (ISLM), leads this narrative, combining the ethos of crypto and the advanced technical elements of blockchain with the moral tenets of Islam.
So, what makes HAQQ Network a truly transformative initiative in the field of Islamic finance? And how can it benefit a growing global Muslim population of nearly 2 billion?Â
What Is Islamic Finance?
Islamic finance, deeply rooted in Shariah law, represents a distinct approach to financial transactions and investments. This system emphasizes risk-sharing, social justice, and actively avoiding interest (usury), which Islam considers to be exploitative. It promotes asset-backed financing and business ventures based on profit and loss sharing, aligning financial activities with the moral values of fairness and transparency.
The Islamic finance market has witnessed substantial growth in recent years. As of 2023, reports indicate that the global Islamic finance industry’s assets have reached approximately $4.5 trillion, showcasing a significant increase from previous years. Experts predict this value to exceed $6.5 trillion in the next two years.
Most importantly, this growth is not just confined to predominantly Muslim countries; it has seen a rise in non-Muslim regions as well, reflecting its growing appeal and the recognition of its ethical investment principles. This expansion can be attributed to the increasing demand for financial services that align with the ethics of equal accessibility and social justice.
How is HAQQ Different from Other Blockchain Networks?Â
HAQQ Network is a high-throughput, scalable Proof-of-Stake blockchain, fully interoperable with Ethereum and the Cosmos SDK. Its architecture supports EVM compatibility, creating scope for rapid transaction processing and seamless interaction within the broader Cosmos ecosystem.
Unlike Ethereum, where validators create and validate blocks, HAQQ employs the CometBFT consensus mechanism that provides instant finality for transactions. This means that in HAQQ, there’s no need for a ‘pending state’ for transactions, as they are quickly committed to the next block, often within about 8 seconds.
HAQQ further differentiates itself in how it produces and manages blocks. The network processes transactions on a first-in-first-out basis from the local mempool – in the order they are received, without prioritizing them based on fees. This contrasts with Ethereum’s transaction handling and provides a more transparent and equitable framework within the HAQQ network.
Understanding HAQQ’s Ecosystem and Major Partnerships
The central elements of the HAQQ ecosystem include HaqqPad and Islamic Coin, each contributing uniquely to the network’s ethos and functionality.
HaqqPad revolutionizes investment opportunities with a focus on ethical investments, serving as a launchpad for Shariah-compliant blockchain projects. It provides a curated platform for investors to discover and engage with innovative blockchain ventures.
The most critical component of this ecosystem is the Islamic Coin, the native token of the HAQQ network. $ISLM embodies the synthesis of traditional Shariah compliance and modern blockchain technology. It operates under Halal Investing principles and is safeguarded by the Shariah Oracle. This token has received a Fatwa based on Islamic teachings, underscoring its adherence to Islamic finance principles. Islamic Coin has been listed in several centralized exchanges, including KuCoin, as the token currently holds a market cap of over $5 million.
The Shariah Oracle stands out as a unique feature of Islamic Coin crypto. It is an on-chain mechanism that manages a whitelist of smart contracts permitted for interaction through Haqq Wallet. The process involves two stages: community voting and evaluation by the Sharia board. Once a project passes these checks, it becomes whitelisted as a Sharia-compliant project. This ensures that interactions are Shariah-compliant, upholding the ethical standards of Islamic finance within the ecosystem.
Strategically, HAQQ has formed partnerships with major players across various sectors, including Alibaba Cloud, Pyypl, and Holiday Swap. The partnership with GoMeat, a blockchain-based delivery app, demonstrates the network’s commitment to broadening the practical use cases of its ecosystem. This collaboration aims to streamline the halal purchasing process and improve user experience with the advanced features of blockchain. Overall, these partnerships reflect HAQQ’s vision of integrating ethical principles with next-gen technologies, catering to the needs of the modern Muslim community.
Bottom Line
The HAQQ Network represents a significant stride in harmonizing Islamic finance with contemporary blockchain technology. Its unwavering commitment to Shariah compliance, coupled with state-of-the-art blockchain solutions, positions it as a formidable entity in the realm of ethical finance. By incorporating elements like HaqqPad, Islamic Coin, and the Shariah Oracle, HAQQ has crafted an ecosystem that provides growing opportunities for other Shariah-compliant and ethical projects in the blockchain sector.
These features mark HAQQ as a key influencer in the evolving landscape of Islamic digital finance, setting a precedent for future endeavors in this space. As the platform continues to forge partnerships and expand its capabilities, it is a testament to the potential of integrating traditional ethical values with modern technological advancements.
