Haqq Network: A Paradigm Shift for Ethical Web3 - TOKEN2049 Singapore 2023

yeah hi everyone my name is Alex malkov even though I'm not here believe me I'm from Islamic coin uh it's just a Duo technical problem so we're gonna talk today a little bit about the ethical finance and especially Sharia compliance finances so and why we're doing it and what is our take here so the the problem which we are began with is that despite many many problems which for example ethereum has like expensive gas or slow slow GPS little very little the projects are still preferring ethereum network over other L1 chains and this mainly because not because people like vitalik's impeccable fashion choice this is happening because the ethereum has the most of the users who are using the crypto at all so basically other layer one Protocols are trying to uh trying to attract the users and convince them to use their l1s instead of the instead of the ethereum so try to choose them over the eth but we think that is important in order to bring the people to the real path in order to make crypto like the on the global scale more usable we need to cater the other groups that previously untapped by by crypto or blockchain at all so and by solving the problems which stands between this adoption and the new nuclear group of clients we came uh eventually came to the our to our heart Network and the Islamic coin which we're gonna talk about today so what is the hack Network in the Islamic coin if I need to describe it in one in one sentence is basically uh ethical ethical ethereum for the Muslim Community and the reason for that is because the Islamic finances are very are very different from the classical ones which you probably know but there are several big differences which in the end of the day makes crypto almost unaccessible by those who are carefully following the Sharia the Sharia law so using the Islamic finances and uh but this is the problem because the Islamic Finance industry is very big so by the end of the next year it should have uh it should reach almost four trillion dollars and as of now currently it has next to zero access to the web free so the liquidity from the Islamic Banks which are growing very rapidly much faster than the the Legacy Finance the classical Finance it's huge but it is untapped totally uh and this this is actually a really good really good point a really good challenge of how you can actually bring new users to the crypto bringing users to the web free make them to make them to use the fintech space in general because currently as we see it the liquidity is just going between the normal ones but this is the same but this is the same funds this is the we're not developing we're not we're actually we're actually running very fast but on a single spot so when we tried to make to enable the almost 1 billion Muslims online to use the web free space we faced several challenges which are which are the differences between the Islamic finance and the classical ones so some of the practices some of the mechanics are prohibited in Islamic Finance so that's why we have the Islamic Banks we have this we have other insurance companies which make industry compliant insurances and we have other Financial products which are designed specifically for those who follow the Sharia rules so in order to reach out for this community in order to reshuffle this vast vast and uh best and the Innovative actually Community which are striving which are striving to use the bleeding edge Technologies and the fintech space in the web free space we had to find our own way of how can we bring the web 3 practices the best web3 practices to the Sharia compliant Finance of followers without ethical controversy so by carefully ensuring that our end users which vast group will not face this uh challenges which are which are common for the in our days when uh we're talking about the Boston Community using the crypto so these are examples on the uh that we are trying to that we need that we need to avoid when we design in any any decentralized application for the uh for the for the followers of the Sharia walls so the of course this is the the Reba the usury you cannot you cannot actually make a standard 300 000 percent apis and offer it to people so that as well as the speculation and uh of course the gambling and other prohibited practices which we should avoid so but how to do it actually on a permissionless blockchain because hack is still permissible it's you can deploy whatever you want there but we need somehow to solve the problem to tackle the problem with said the end user who may be not very maybe not very Savvy in the web free or just have zero experience with it would still use the web free and be ethically sure that he using the Sharia compliant finances and others I'm passing to our CTO Andre yeah here you go hi everyone Heroes how we solved the problem I wish Alex just described we designed a Sharia Oracle which is in a very simple world and on chain registry of sharia complaints and certificates digital certificates which from one side for users is assurance that whatever they use on chain is Sharia compliant from other side for Builders is a framework or a path to this wide Muslim audience of building shipping the application and stating that this application is Sharia compliant the Oracle is built the the Oracle technical interfaces they are built on chain level on evm level which makes it usable not just by from client applications but also by other smart contracts for example you implement a charitable application or a token swap you thanks to Sharia Oracle you can filter the increment liquidity whether it is for example this lc20 token is this area compliant or not and the painting on this you decide whether to accept this liquidity or not or accept every liquidity but Sharia compliant liquidity takes priority also we have agreements with some centralized exchanges which also entering Sharia compliancy Market that they utilize our Sharia Oracle in order to speed up listing applications for Sharia complaints erc20 tokens um we're still permissionless blockchain like Alex said and uh Sharia complaints certificate being issued by our Sharia board which is a team of world-renowned Scholars the process of obtaining the certificate can take significant amount of time because it requires auditing feedback processing fixing issues and so on so we decided to introduce two levels of approval first convenient second Sharia as a developer you can deploy any smart contract on chain then you have an option to apply for the community approval community of Islamic coins takers through normal governance procedure vote for or against this smart contract or a set of smart contracts if Community approved it the contract gets a community approval certificate in the form of sold Bond token then such small contracts can apply for Sharia compliance certificate this first convenient approval acts as a filter from trolling scams and some obviously non-share compliant projects so convention reduces work needed to be done by our Sharia board which consists of very few people then use cases it it's not enough to just have this Soul Bond token it has to be shown somewhere the first use case is the hack wallet even though the network is evm compatible hence is compatible with metamask trust wallet whatever we're building our own wallet which have some features useful for people who are not crypto or technical savvy but most importantly this wallet soon will be integrated with stereo Oracle in a way that one user signs the transaction the wallet traces these transactions and try to find Smart contracts with approval level below of level which user prefers either community of or Sharia if there is such small smart contract we show a warnings look here's a smart contract you prefer Sharia compliant smart contracts and this smart contracts is not Sharia compliant are you sure that you want to sign this transaction we still do not prevent user to sign it but at least we warned him this feature also has one interesting technical implication maybe some of you heard how curves Dex was hacked last year attackers they did not hack the smart contract they hacked a front-end on which they directed traders to a malicious smart contract on hack in hack wallet such attack would not uh would still be possible but uh thanks to Sharia Oracle this would significantly reduce amount of people affected by uh by this attack because the moment attackers hijack the front end every user starts seeing this notification that something goes wrong Second Use case which is currently not covered by this presentation we just had a brainstorm with the guys from skip protocol and we are researching a way to make sadio Oracle affect the block building mechanism so that Sharia complained or Community approved smart contract get a priority Lane in Block space and not a smart contracts they can only take up to for example 10 percent of of of blog space this would prevent a lot of things happen on chains we saw on ethereum for example someone launched this huge nft mint which takes all the blog space and prevents the whole okay systems working we believe that Sharia compliant ecosystem will look much much different from what we see currently in G5 because uh modern G5 is based on uh prohibited practices most importantly Lending what we see when some yet another player one appears where the fire ecosystem is just copycat of ethereum on hack Network thanks to boundaries imposed by Sharia Sharia law we expect this to boost Builders creativity and create brand new defy dubs game fire whatever products they build and most importantly we expect this ecosystem to to be more stable more sustainable and to sort of people Beyond just birthday bubble let's all what scripta was supposed to be about here is some information about our record system uh boosting program we have hotpad and ground system of 40 million dollars if you build something please apply and here you can see a links to more information about Sherry Oracle hack Network and our native currency Islamic coin thank you