By Dr Mansoor Malik
A cryptocurrency is a form of currency that exists digitally or virtually and uses blockchains to secure transactions. Cryptocurrencies are usually built using blockchain technology. Blockchain describes the way transactions are recorded into “blocks” and time stamped. It’s a fairly complex, technical process, but the result is a digital ledger of cryptocurrency transactions that’s hard for hackers to tamper with.
Cryptocurrencies don’t have a central issuing or regulating authority, instead using a decentralised system to record transactions. It is a digital payment system that doesn’t rely on banks to verify transactions. It’s a peer-to-peer system that can enable anyone anywhere to send and receive payments. Instead of being physical money carried around and exchanged in the real world, cryptocurrency payments exist purely as digital entries to an online database describing specific transactions. When you transfer cryptocurrency funds, the transactions are recorded in a public ledger. Cryptocurrency is stored in digital wallets.
Cryptocurrency
Why is it called Cryptocurrency? Because it uses encryption to verify transactions. This means advanced coding is involved in storing and transmitting cryptocurrency data between wallets and to public ledgers. The aim of encryption is to provide security and safety. The first cryptocurrency was Bitcoin, founded in 2009 and remains the most known today. There are over 600 cryptocurrencies today Some of the best known include:
Bitcoin
Founded in 2009, Bitcoin was the first cryptocurrency and is still the most commonly traded. The currency was developed by Satoshi Nakamoto.
Ethereum
Developed in 2015, Ethereum is a blockchain platform with its own cryptocurrency, called Ether (ETH) or Ethereum. It is the most popular cryptocurrency after Bitcoin.
Litecoin
This currency is most similar to bitcoin but has moved more quickly to develop new innovations, including faster payments and processes to allow more transactions.
Ripple
Ripple is a distributed ledger system that was founded in 2012. Ripple can be used to track different kinds of transactions, not just cryptocurrency.
Non-Bitcoin cryptocurrencies are collectively known as “altcoins” to distinguish them from the original. Blockchain stocks or ETFs: You can also indirectly invest in crypto through blockchain companies that specialise in the technology behind crypto and crypto transactions. Alternatively, you can buy stocks or ETFs of companies that use blockchain technology. Cryptocurrency safe transactions require a two-factor authentication process. a username and password to start a transaction. Then to enter an authentication code sent via text to your personal cell phone. Now I will express my thoughts about sharia law and crypto currency. Any form of currency is a payment mode. From barter system to gold and Silver coins to bank notes and now crypto all are a payment system for any trade or other transactions. Sharia does not prohibit any one of such methods or currencies of payment. It depends upon what we buy. If we buy a house using any one of them is halal but if we buy night club or gambling place with even gold it will be haram.
Algorithm was invented and introduced in human history by great Muslim scholar Muhammad Alkhawarzmi a mathematician who first-ever wrote the book Aljabr and used Algebra in the 9th century. In his book, he set out rules and techniques to solve Algebraic equations. The term Algorithm and Algorism are derived from his name. Another great Muslim scholar Alkindi first wrote about cryptographic algorithms and explained deciphers encrypted code.
In his manuscript on deciphering Cryptographic messages, he first described cryptanalysis by frequency Analysis. That was the first-time codebreaking Algorithm. U.K. Europe and USA benefited and utilised this scientific knowledge and touched the sky heights in tech science. Where we Muslims forgot all such great knowledge of our ancestors. Some of our current scholars are busy writing fatwas against such useful knowledge because of their sheer ignorance. But they are using iPhones and laptops without realising that these inventions are based on the tech science rules introduced by Muslim scholars Alkhawazimi and Alkindi.
From top end of the technology’s heights spirituality starts. Digital science and now Metaverse sciences are proving the miracles of our divinely gifted prophets and saints. We can now understand Prophet Soloman getting the Arsh of Queen Bilqees before her arrival. How our beloved Prophet Mohammad (PBUH) got the journey of Alasraa walMeraj within minutes. And how Khalif Omer’s message from Madina was transmitted instantly to commander Saria hundreds of miles away.
May Muslims and our rigid scholars wake up from the dark night of ignorance to the bright light of day and follow the footsteps of our most knowledgeable legendary scholars of early centuries of Islam. No one denies the cryptocurrency medium of payment. However, all governments are looking for ways how to regulate it before adopting it officially as a new currency. There will be no choice but to adopt it. The good aspect will be that any regulatory process would limit to national level and not international level which will protect individuals’ privacy.
