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SMART CONTRACTS:

A smart contract is essentially a piece of code that is stored on a blockchain, triggered by transactions on a blockchain, and which reads and writes data in that blockchain’s database. Smart contracts can be considered program functions: there are inputs, logic to process the inputs, and outputs. Whenever a smart contract is executed, it results in a change of states and an update to the positions of people. Thus, the smart contract can automatically execute predetermined terms and conditions when met.

HALAL CRYPTO-ASSETS AND DECENTRALISED FINANCE:

Crypto-assets are wholly digital in nature and only exist online. These assets utilise cryptography, peer-to-peer networking, and a public ledger to regulate the creation of new units, verify transactions, and secure the transactions without the intervention of any middleman. Thus, they are digital in nature and use cryptography to verify the validity of transactions. Crypto-operations occur on a decentralised peer-to-peer network and the data is recorded on the decentralised public ledger, also known as blockchain.

Halal Crypto-Assets can be classified as follows:

  • Crypto-currencies

  • Security Tokens

  • Utility Token

  • Asset Backed Token

  • Governance Token

  • Platform Token

  • Hybrid Token