Muslim-focused decentralized finance platform Marhaba has designed the “world’s first” certification for non-fungible tokens while staying compliant with Shariah law. NFT’s minted are sent to a Shariah governance board which reviews the artwork to determine if it is in accordance with “Halal,” an Arabic concept defining what is permitted under Islamic law.
“The trustless nature of NFT-based halal compliance certifications fills a pressing need in the halal economy sector. Where certificate forgeries are common or difficult to validate, especially in the halal food industry.”
– MRHB founder and CEO Naquib Mohammed
The process involves NFTs projects being submitted to a Sharia administrative board. The panel then reviews the artwork’s compliance with Shariah Law. NFTs that pass the board’s overview become “Halal-certified” In addition; Halal NFTs receive a Blockchain minted certificate curated by Sharia Experts LTD, an Islamic advisory platform for web3 projects.
Marhaba Truly Decentralized?
Marhaba views itself as a truly decentralized entity. However, the use of its “Shariah compliance enforcement governance board” brings concerns regarding Defi autonomy.
“We definitely control certain aspects, such as the listing and operations, within a select set of protocols. But once audited by the shariah team, the decentralized aspects remain uncompromised.”
Mohammed further explained that besides religious considerations, the basics of the halal-compliant NFTs are acceptable even for those who do not follow Islam. While under Shariah Law, MRHB continues to build an ecosystem of Defi products and services “specifically made for ethics-conscious people such as Muslims.”
Regardless of the economic hurdle the Marhaba has to overcome regarding overview; they have done a lot for Defi inside Islamic territories. In 2021, Marhaba raised $5.5 million in an initial dex offering (IDO). Since then, it has launched a crypto halal wallet called Sahal and partnered with 14 companies, including Polygon.
Reposted from: nftevening.com