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Smart Contract and Islamic Finance

  • Nafis Alam
  • Lokesh Gupta
  • Abdolhossein Zameni
Chapter

Abstract

A smart contract is a disruptive technology and gaining market share at a rapid pace. The main purpose of smart contract is to facilitate the transfer of digital assets between the contracting parties based on pre-agreed stipulations or terms. The concept of smart contracts makes enormous sense to Islamic financial institutions to implement it for Islamic financing services. A smart contract is closer to Islamic contract and in compliance with Shariah objective to ensure transparency in business dealings or transactions such as asset definition, payment terms, enforcement and following the principle of trust. This chapter focuses on the application of smart contract in Islamic finance in areas of cash financing, trade financing, remittance and so on.

References

  1. Bakar, M. D. (2008). Contracts in Islamic Commercial Law and Their Application in Modern Islamic.Google Scholar
  2. Fintech in Islamic Finance and Its Shariah Parameter, Prof. Dr. Mohamad Akram laldin, Dr. Fares Djafri, Published by International Shari’ah Research Academy for Islamic Finance (ISRA), Undated, Available at: https://www.kantakji.com/media/224666/-fintech-in-islamic-finance-and-its-shariah-parameter.pdf
  3. Fintech and Shariah Governance, Othman Abdullah (2017, June 6). Available at: https://islmfintech.com/fintech-and-shariah-governance/
  4. Smart Contracts Market Research Report—Global Forecast to 2023. Available at: https://www.marketresearchfuture.com/reports/smart-contracts-market-4588
  5. Szabo, N. (1994). Smart Contracts. Available at: http://szabo.best.vwh.net/smart.contracts.html

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Nafis Alam
    • 1
  • Lokesh Gupta
    • 2
  • Abdolhossein Zameni
    • 1
  1. 1.Henley Business SchoolUniversity of Reading MalaysiaIskandar PuteriMalaysia
  2. 2.RM ApplicationsKuala LumpurMalaysia

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