Qitmeer Network: Actualizing the essence of Islamic Finance with Blockchain technology

Abdussalam Abdussalam
3 min readJun 25, 2021

Introduction

Over the years, the approach of the Islamic financial system has been the closest financial system to the decentralized financial system. The rules governing Islamic finance are based on Muqasid Sharia (objective of shariah) which guides the spending, financing and investing protocol where it is legalized.

The emergence of blockchain produced a decentralized financial system where no one is governing finances of the general public. The traditional method of finance which is centralized has its shortcomings, like centralized authority carrying out activity at the expense of the masses, lending funds in return for heavy interest, light and heavy cost of third party and many more. Decentralized finance was birthed to eradicate all forms of shortcomings of the traditional financial system is corrected in the Islamic financial system in line with shariah rules and principles.

Qitmeer Blockchain and Islamic Finance

Over the years, the approach of the Islamic financial system has been the closest financial system to the decentralized financial system. The rules governing Islamic finance are based on Muqasid Sharia (objectives of shariah) which guides the spending, financing and investing protocol where it is legalized.

The decentralized finance is based on the concept of blockchain where information in the system is safe and stored in every block in the blockchain. The blockchain protected by end-to-end encryption cryptographically is a distributed ledger of information assigned in different blocks across its network. The network offers a platform where transaction is safe and transparent without any hindrance by a third party, the network through cryptography produces its (crypto)currency for the maintenance of its network.

The Islamic financial system is considered the most transparent method of financing in view of investors and borrowers. The uniqueness of the system is based on shariah law principles, these principles include fairness, justice, equality and trust in the system. Looking closely at the basics which Islamic finance is laid upon, it is seen how closely aligned the system is to the model of blockchain in decentralized finance. This has ultimately brought about the wide acceptance of blockchain by Islamic finance expert which has led to the birth of Qitmeer Foundation.

Qitmeer Network: A Shariah Compliant Blockchain

Qitmeer blockchain maintained by the meercoin on its blockDAG technology combines models of two ecosystem, the model of decentralized finance and the Islamic finance to form a shariah compliant blockchain. The Qitmeer foundation has built its end-to-end encryption based on the principles of Islamic finance on the blockDAG technology of its network in accordance to the principles of shariah and ethical finance. Through Qitmeer network cryptography, the rigorous procedures which have been a major drawback in Islamic finance over the years is simplified and the time for verification of halal activity in Islamic finance or permissible activity in ethical financial system which usually always took forever have been drastically improved.

Conclusion

Finally, the Qitmeer network protocol is built to strengthen the basics of Islamic finance and to make the Islamic finance system easily accessible to everyone globally irrespective of religion and culture to the Islamic finance system, to enjoy the equality, fairness, transparency and interest free financing of the Islamic finance system through the Qitmeer blockDAG technology. This makes it well-grounded and flexible concept for everyone globally.

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