Do Sharia Scholars Understand Blockchain Enough?
The Knowledge Gap Between Sharia and Technology
The decentralized Islamic finance industry faces a challenge in convincing Sharia scholars of the viability of blockchain technology. Although there are over 1.9 billion Muslims and traditional Islamic finance manages assets estimated at $4 trillion, the adoption of decentralized finance remains limited. Many scholars have not received sufficient training in computer science or blockchain, raising questions about their ability to understand smart contract mechanisms and verify decentralization. This does not mean they are unqualified, but rather highlights an urgent need to bridge the knowledge gap through workshops and joint consultative sessions between developers and jurists.
Scholars Are Open When Concepts Are Simplified
Practical experiences with projects like 'Qist' show that scholars respond positively when the technology is explained in familiar terms. For instance, a 'smart contract' can be likened to a traditional contract formula but executed automatically without an intermediary. When scholars realize that blockchain is a tamper-proof distributed ledger and that non-fungible tokens (NFTs) can represent physical assets like real estate, their reservations diminish. The real challenge is translation: we need scholars proficient in technical English or developers fluent in jurisprudential Arabic.
The Role of Sharia Educational Platforms in Awareness
Institutions such as the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the Sharia Board for Islamic Finance can play a pivotal role. If these bodies issue simplified guidelines on blockchain and digital currencies, it will be easier for scholars to apply Sharia objectives such as the prohibition of riba and gharar. 'Qist' adheres to the principle 'the seller owns the asset' and uses USDC to avoid volatility, thereby reducing gharar. These fine details need Sharia documentation to reassure scholars.
Qist's Experience in Engaging with Sharia Rulings
Since its launch, 'Qist' has consulted several Sharia scholars in the Middle East and Southeast Asia. The outcome has been generally positive after we explained the asset-backed installment mechanism: the seller owns the asset throughout, and the buyer pays in installments with a surplus refunded upon early settlement. The contract is open on BaseScan for any scholar to verify transparency. A mere 2% fee covers operational costs without interest. These real-world models convince scholars more than abstract theories.
How Qist Implements This
At 'Qist', we believe transparency is the bridge to scholars' trust. Therefore, we publish all audited smart contracts on BaseScan and provide simplified Arabic explanations for each transaction. We also organize periodic webinars in collaboration with Sharia institutes to explain our mechanism. If you are a scholar or student of knowledge, we invite you to review our smart contract and submit your feedback. Together, we can build a decentralized Islamic finance system that pleases Allah and then the people.