Is IOTA (IOTA) Halal or Haram?
Shariah compliance review of IOTA (IOTA) by Islamic finance scholars at EthicalNode, with separate verdicts for trading and for staking.
Trading verdict: Comfortable
IOTA is a ledger designed for the Internet of Things (IoT). Unlike traditional blockchain systems, it uses a unique protocol called the Tangle, which is quantum-proof and offers several key advantages. These include zero transaction fees, infinite scalability, fast transactions, and secure data transfer. IOTA aims to be the backbone of IoT, supporting microtransactions and enabling efficient, secure communication between connected devices. IOTA EVM introduces features like smart contracts, cross-chain functionality, parallel processing, and enhanced security against Maximal Extractable Value (MEV). Sharlife.my Analisys: IOTA's entire ecosystem and its token are considered neutral. IOTA functions as a store of value, similar to Bitcoin. Our team has thoroughly reviewed all features of the network, and no dubious elements were found. Therefore, this token is classified as Shariah compliant.
Staking verdict: Questionable
Staking in IOTA is more like activity for air-drops. There is no Proof-of-Stake consensus, but users can can stake their tokens in Firefly wallet and get reward in a form of another token which is build on IOTA. Shariah compliance of IOTA staking needs a deeper analysis.
Browse all Shariah-compliant cryptocurrencies on the EthicalNode halal crypto screener.