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This research evaluates the compatibility of cryptocurrency and blockchain technology with Islamic finance principles, focusing on issues of uncertainty (gharar) and gambling. It analyzes both the advantages and disadvantages of these technologies while considering Islamic rules and scholars' opinions. The findings suggest that while blockchain is largely beneficial, cryptocurrency remains questionable due to its speculative nature, though future regulation may enhance its acceptability in Islamic finance.

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faraziato5
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2 views4 pages

Project

This research evaluates the compatibility of cryptocurrency and blockchain technology with Islamic finance principles, focusing on issues of uncertainty (gharar) and gambling. It analyzes both the advantages and disadvantages of these technologies while considering Islamic rules and scholars' opinions. The findings suggest that while blockchain is largely beneficial, cryptocurrency remains questionable due to its speculative nature, though future regulation may enhance its acceptability in Islamic finance.

Uploaded by

faraziato5
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Title

Cryptocurrency and Gharar (Uncertainty): A Critical Evaluation of Blockchain


Technology’s Compatibility with Islamic Finance Principles

Simple Meaning of the Title (Layman Term)


This title means:

“This research studies whether cryptocurrency and blockchain technology are acceptable in
Islam or not, especially by checking if they contain uncertainty, risk, gambling, or unfairness
according to Islamic financial rules.”

Now break it into small parts:

1. Cryptocurrency
Cryptocurrency means digital money that exists online.

Examples:

• Bitcoin
• Ethereum

Unlike normal money:

• It is not printed by governments.


• It works through the internet.
• People can send money directly without banks.

Simple example:
You send money to your friend online using Bitcoin instead of using a bank account.

2. Gharar (Uncertainty)
In Islam, gharar means:
“Too much uncertainty, confusion, or unknown risk in a deal.”

Islam dislikes transactions where:

• Nobody knows what will happen.


• The value changes crazily.
• There is deception or unclear information.

Simple example:
Buying something without knowing:

• its real price,


• quality,
• delivery,
• or future outcome.

Cryptocurrency becomes suspicious because:

• Prices rise and fall very quickly.


• Many people buy it only for risky profit.
• Some coins have no real backing.

3. Critical Evaluation
This means:

“Deeply analyzing both good and bad sides.”

The research is not blindly supporting or rejecting crypto.


It carefully studies:

• advantages,
• disadvantages,
• Islamic rules,
• scholars’ opinions,
• and real-world usage.

4. Blockchain Technology
Blockchain is the technology behind cryptocurrency.
Simple meaning:

A digital record book that stores transactions securely and transparently.

Features:

• Very hard to hack


• Everyone can verify records
• No single person controls it
• Reduces fraud

Example:
If A sends money to B:

• the transaction gets permanently recorded,


• and everyone in the network can verify it.

That transparency matches many Islamic finance principles.

5. Compatibility with Islamic Finance Principles


This means:

“Checking whether blockchain and cryptocurrency follow Islamic financial rules.”

Islamic finance avoids:

• interest (riba)
• gambling (maysir)
• fraud
• excessive uncertainty (gharar)
• injustice

The research checks:

• Does crypto violate these rules?


• Can blockchain help Islamic banking?
• Can crypto become halal in the future?

Whole Title in One Simple Sentence


“This research checks whether cryptocurrency and blockchain technology are halal or
problematic in Islam by studying uncertainty, gambling risks, transparency, and Islamic financial
rules.”

Main Idea of the Research in Baby-Level


Explanation
• Blockchain technology = mostly good because it is transparent and secure.
• Cryptocurrency = still doubtful because people mostly use it for risky trading and
speculation.
• Scholars are still debating it.
• If crypto becomes stable and properly regulated in future, it may become more acceptable
in Islamic finance.

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