Is Horizen (ZEN) Halal or Haram?
Shariah compliance review of Horizen (ZEN) by Islamic finance scholars at EthicalNode, with separate verdicts for trading and for staking.
Trading verdict: Comfortable
Launched in 2017 and managed by the Horizen DAO, the Horizen ecosystem focuses on zero-knowledge (ZK) applications with Horizen 2.0, which features full EVM compatibility and integrates zkVerify for cost-effective proof verification. It includes built-in precompiled contracts to simplify and secure ZK proof validation for developers. Utilizing the Substrate framework, Horizen 2.0 has a modular architecture comprising a Core Client and a WebAssembly (Wasm) runtime. It supports diverse use cases such as identity verification, DeFi, voting systems, and on-chain gaming.
Staking verdict: Questionable
The blockchain currently operates on a Proof-of-Work consensus protocol, but the project plans to launch the Horizon 2.0 Mainnet, which will function on a Delegated Proof-of-Stake consensus protocol. In any case, participating in the consensus protocol of blockchains that enable the development of smart contracts and dApps may raise questions regarding compliance with Shariah standards.
Browse all Shariah-compliant cryptocurrencies on the EthicalNode halal crypto screener.