Creating Shariah-Compliant Digital Assets at Credence
The term “Credence” implies trust and reliability. This newest addition to the portfolio of platforms created by the IBF Net Group provides for all the benefits that are usually bracketed with blockchain technology in general as a trust-inducing machine. It enables the preservation of tangible and intangible assets by creating transparent, verifiable, traceable and immutable digital records of ownership in the form of NFTs while providing for automatic implementation of contractual relationships using smart contracts.
“A platform like Credence is an integral part of the ethical and Islamic digital ecosystem, since it addresses some basic pain points related to trust-deficit. It enables creation of a smart system by curbing the actions of bad actors in a multitude of use cases. Since the IBF Net community at present largely comprises students, researchers and professionals interested in the fields of Islamic business, finance and technology, the use cases will initially focus on the needs of this community”, says Mohammed Alim, CEO, IBF Net Group.
For example, students can preserve their certificates and records of achievement on the blockchain in the form of tamper-proof NFTs that can be accessed at all times by any external employer or interested entity. From an organisation’s point of view, Credence can create and store verifiable records of performance or acquisition of skills and competencies by its employees.
Creators of all hues — authors, artists, musicians, calligraphers, inventors and what-have-you can time-stamp and preserve their creations on the blockchain, while safeguarding the work from risks of plagiarisation by providing verifiability and traceability. All forms of intellectual property rights can be transformed into NFTs while smart contracts would automatically transfer royalties to the original creators every time the asset is sold to a new buyer. Certain industries, such as book publishing are notoriously known for their exploitation of new authors in the form of meagre royalty rates and gross understatement of volumes sold. Credence expects to disrupt such businesses and hit them hard, according to IBF Net.
Shariah contracts that are not legally backed in certain countries can be formalised using Credence. It fills the gaping hole of trust deficit that currently exists in the system between parties engaging in Shariah nominate contracts that can range from social contracts like marriage and divorce to financial contracts like sale, lease, partnership etc. Credence can help organisations like Waqf boards etc in such countries to document, manage, and bring transparency in the dealings with regards to their assets by having them all preserved on the blockchain. Credence can help such organisations meet the regulatory needs of governing bodies by providing a fully secure, transparent and trust-inducing engine that uses Algorand blockchain technology.
Credence facilitates trustless contracts. This closes the doors for elements of corruption, tampering, and any problems that might occur with the intervention or dependency on third parties. It provides transparency to all contracts that can be used in the future by governing, legislating, or regulatory bodies.
Credence provides for a simple user experience. Users can mint and preserve their NFTs on Credence at a nominal cost, once the contents clear the tests of Shariah compliance. This makes the user’s creation tamper-proof, immutable, with the ownership of the assets clearly established followed by automatic execution of smart contracts leading to royalty flows based on actual volumes.
Close on the heels of Credence, the IBF Net plans to further enhance value for its members through Affluence, a platform expected to be rolled out before the end of first quarter of 2022. This platform is essentially an extension of Credence that will provide for a marketplace for NFTs where sellers can offer their NFTs either at a known price or via an auction mechanism. The platform will also provide a unique interest-free borrowing-lending (Qard) facility through which buyers can seek financing for new purchases by offering their existing holdings as collateral, according to IBF Net.