Is Blockchain allowed in Islam? (The Digital Economy: Case Study 2 – Part 2/4) Video (2/2)

Pause the video and write your view in the comments below: “Allowed” or “Forbidden”. Then watch the video till the end for the answer.

Let us look at some of the characteristics of a Blockchain:

1) It is similar to the process of having the information audited (the Hash) and a copy kept with the tax authority (Public Accessibility).

2) The Hash is like a wax seal (e.g. at customs), which breaks easily to show tampering.

3) Hash is not a security protocol and is vulnerable to computer speed.

4) As computers get more powerful, new hash algorithms have had to be adopted. Implying this is NOT a method of providing security.

5) A powerful computer could re-hash the whole Blockchain by sheer force – in the physical world you could easily detect such a big attack (e.g. armies of old), but in modern times a computer attack is not publicly visible. Example, like a super fast cartoon character can get a book from the teacher’s table without seen to be moving.

6) Digital frauds have been a regular occurrence since the start of this technology, but it is easier at the interface with the real world, i.e. crypto exchanges. Either by outside hackers or fraudulent management. Either way, this does not imply immutability, as there has been no incentive to attack the Blockchain yet.

7) The Hashing (or Mining) process requires money, energy and time , without any productive purpose or output in the economy.

Sahih Al-Bukhari Hadith 6069: (A believer should conceal what sins he may commit.):

Abu Huraira (RAA) Narrated:
I heard Allah’s Messenger (PBUH) saying. “All the sins of my followers will be forgiven except those of the Mujahirin (those who commit a sin openly or disclose their sins to the people). An example of such disclosure is that a person commits a sin at night and though Allah screens it from the public, then he comes in the morning, and says, ‘O so-and-so, I did such-and-such (evil) deed yesterday,’ though he spent his night screened by his Lord (none knowing about his sin) and in the morning he removes Allah’s screen from himself.” [Sahih Al-Bukhari Hadith 6069]

8) Blockchain is used to ascertain a Public Distributed Ledger. Hence this technology would be restricted to only public information, as in Islam private information, must remain private, See Sahih Al-Bukhari Hadith 6069 above.

9) A private Blockchain may limit tampering from employees with restricted computing power, but how would it prevent a fraudulent management from resetting the ledger?

In Islam Blockchain (knowing its not a security protocol) could be used but only for public information, and more development needs to be undertaken to address the issues mentioned previously.

Do you want to know more of what is allowed and what is forbidden ? How should the economy and finance on the whole be structured?

The book “Islamic Finance and Trade: God’s Economic System”, is the culmination of over 25 years of research, to present the answer to the above question. You are kindly invited to Read, Review and Recommend the book. It is available at https://a.co/d/f1jTXvP and on all Amazon sites.

Your views and questions are welcomed and the discussion can be furthered in the comments below and at www.sultanalikhan.com.

#sultanalikhan #interestusuryriba #islamicfinance #islamicbanking #islam #religion #islamicvideos #islamic #book #booktok #crypto #ptl #god

DISCLAIMER

The information provided in this video is for general informational purposes only. All information in the video is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information in the Video.
Under no circumstance shall we have any liability to you for any loss or damage of any kind incurred as a result of the use of the video or reliance on any information provided in the video. Your use of the video and your reliance on any information in the video is solely at your own risk.

The Video cannot and does not contain financial/medical/legal/fitness/health/other advice. The financial/legal/medical/fitness/health/other information is provided for general informational and educational purposes only and is not a substitute for professional advice.
Accordingly, before taking any actions based upon such information, we encourage you to consult with the appropriate professionals. We do not provide any kind of financial/medical/legal/fitness/health/other advice. The use or reliance of any information contained in this video is solely at your own risk.

Copyright © 2023 Sultan Ali Khan. All rights reserved.