Web3 is the next version of the internet that makes things more fair and secure. It uses a special technology called blockchain, which helps keep information safe and transparent. With Web3, people can do things like buy and sell things without a middleman, have more control over their personal information, and use special programs called smart contracts that work on their own. It’s like a new and improved internet that gives power back to the people.

Before we jump on blockchain and bombarding you with web3 jargons, let us share this analogy with you so you understand it better. 

The concept of chains is not new to Islam. For example, the “ijaza” permission of the Quran or isnad (the chain) of sahih hadith.

Ijaza means permission. In this context, if someone has an ijazah it means this person got the “permission” to recite the Quran from their teacher who in turn got “permission” from their teacher. The list goes on. This chain goes upward to the Prophet Muhammad SAW then to Jibreel AS then to Allah SWT. This way, the Quran is passed down accurately from one person to another, keeping its beautiful words alive for generations to come.

In Islam, there is another concept called “isnad,” which refers to the chain of narrators or transmitters of a hadith (a saying or action of Prophet Muhammad SAW). Isnad is used to verify the authenticity and reliability of a hadith.

Think of isnad as a relay race. Imagine you have a message that you want to pass on to your friend. You pass the message to another person you trust, and they pass it to another person they trust, and so on, creating a chain of people. Each person in the chain is responsible for verifying the accuracy of the message and the credibility of the person they received it from.

Similarly, in the study of hadith, scholars examine the isnad or chain of narrators to ensure the reliability and authenticity of the hadith. They carefully study the character, knowledge, and trustworthiness of each narrator in the chain. If the chain is strong, with trustworthy narrators and a clear connection back to Prophet Muhammad, the hadith is considered more reliable and accepted as authentic.

Just as ijazah or isnad helps ensure the accurate transmission of knowledge in Islam, blockchain technology works in a similar way. It creates a chain of digital records, where each block contains information and a reference to the previous block. The blocks are verified and added to the chain by a network of computers called nodes. This decentralized and transparent process helps ensure the integrity and security of the information stored in the blockchain, similar to how isnad ensures the authenticity and reliability of narrations in Islam.

A stablecoin is a type of cryptocurrency where the value of the digital asset is supposed to be pegged to a reference asset, which is either fiat money, exchange-traded commodities (such as precious metals or industrial metals), or another cryptocurrency.

Some example stablecoins are USDT and USDC. Each USDT or USDC is pegged against $1.

Imagine you have some special digital money, like a virtual currency, and you want to use it to help others. With Baraka.Fund – waqf on the blockchain, you can create a special account where you put that digital money. Once you put it in, you can’t take it back out.

This special account is like a treasure chest that is locked and can only be used for good things. For example, the money in the waqf could be used to build schools, hospitals, or help people in need.

The best part is that the waqf works by itself! There is a special computer program – a smart contract that automatically uses the money in the waqf to do good things. In this case, it invests the money donated and earns a monthly revenue. Then this revenue is used to help others while the invested amount stays in the fund to generate a monthly revenue month after month.

And because it’s on the blockchain, everyone can see what’s happening with the waqf. It’s like having many people watching to make sure the money is being used for the right purposes. This way, your digital money can keep doing good things and helping others, even if you’re not directly involved anymore.

So, waqf on the blockchain is like a magical way to use your digital money for important causes and make a positive difference in the world.