Using Blockchain in WAQF, Wills and Inheritance Solutions in the Islamic System

Walaa J. Alharthi

International Journal of Economics & Business Administration (IJEBA), 2021, vol. IX, issue 2, 101-116

Abstract: Purpose: The paper aims to provide a review of literature on the Islamic social institution of WAQF, dissecting the components of WAQF and the classic Islamic laws that guide its formation and implementation. WAQFs are Islamic social finance institutions that have played a critical role in achieving sustainable development in Islamic society. During the Ottoman era, it was operated effectively to ensure the founder's wishes until the advent of Islamic finance. The study highlights the challenges that the WAQF institution faces and the viability of the Blockchain system in mitigating these challenges and managing WAQF across the globe, which should help achieve the convectional objectives WAQF. Approach/Methodology/Design: The study reviewed the most recent research papers on the WAQF Islamic social finance institution to isolate the institution's components, legal framework and challenges, and outline the solutions Blockchain system can provide. Findings: The study shows that the main challenge obstructing the rejuvenation of the WAQF system to its lost glory has been lack of data, compromised historical records in the event of the Founders' demise, lack of transparency, and inappropriate auditing. Through smart contracts on Blockchain, there is a surety of efficacy and effective performance of WAQF institution and the realization of the founders' objectives. Practical Implications: The study will contribute positively to understanding the historical importance of WAQF as an Islamic social institution and a predecessor to Islamic finance for academia and the possibility of utilizing Blockchain systems in managing WAQF transactions across the globe. Originality/Value: This study believes in contributing to the Blockchain system's understanding as a possible solution to the challenges facing the Islamic social finance system.

Keywords: Blockchain; smart contract; secure payment; Islamic banking system; WAQF. (search for similar items in EconPapers)
JEL-codes: F3 G0 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:ers:ijebaa:v:ix:y:2021:i:2:p:101-116

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