Is Nervos Network (CKB) Halal or Haram?
Shariah compliance review of Nervos Network (CKB) by Islamic finance scholars at EthicalNode, with separate verdicts for trading and for staking.
Trading verdict: Comfortable
Nervos Network is a layer 1 that enables developers can build dApps that can interoperate between different blockchains. Overall, the ecosystem are aligned with Shariah. Source: sharlife.my
Staking verdict: Questionable
Proof of Work relies heavily on computing power provided by specialized hardware. Validators earn rewards based on transactions processed globally. This reward system is deemed permissible under Shariah law, as it does not involve Riba (usury), Gharar (excessive uncertainty), or Maisir (gambling). However, it requires significant resource investments and entails certain risks. We adhere to the Islamic legal maxim that states, 'Hardship begets facility. Source: sharlife.my Proof-of-Stake consensus is not there, so any other forms of deposit with fixed yield or deposits on CEX's that claim to be "staking" for this protocol is better to avoid. However, liquidity providing will have a separate ruling.
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