ANALYSIS OF THE USE OF BLOCKCHAIN IN SHARIA TRANSACTIONS: A STUDY OF HALAL AND HARAM

Abstract

Blockchain is a form of digital technology innovation that can ensure data security so that today it is widely used, including by Islamic financial service providers. Blockchain enables the creation and distribution of cryptocurrencies, as well as assets with real value. Since blockchain is the underlying technology of cryptocurrencies, the two are often linked and considered as haram. In addition, blockchain offers advantages, such as a high level of transparency and security, a system that does not require a third party so as to reduce administrative costs, efficiency that can speed up the transaction process and others. From this consideration, the researcher tried to analyze the halal-haram status of blockchain. To conduct this research, researchers conducted a literature study through related articles, books and journals. Through this research it was found that blockchain has been applied in several financial transactions in countries such as Jordan, Saudi Arabia and Indonesia. The results showed that blockchain has been applied in various Islamic banks, both in transactions and the receipt of zakat and waqf. Blockchain is not a cryptocurrency and it is lawful as long as it is applied in transactions that fulfill sharia principles.