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Enhancing trust & transparency in waqf donations through blockchain-based smart contracts aligned with shariah principles

Azli, Ainul Nabihah and Muhamad Ibrahim, Najhan (2026) Enhancing trust & transparency in waqf donations through blockchain-based smart contracts aligned with shariah principles. Journal of Information Systems and Digital Technologies, 8 (1). pp. 32-43. E-ISSN 2682-8790

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Abstract

Smart contracts using blockchain technology offer a more convenient and efficient way to execute transactions. Self-executing programs that automate activities independently, utilising the sophisticated features of blockchain to guarantee transparency, efficiency, and security. However, integrating smart contracts that do not adhere to Shariah principles may lead to non-compliance with Islamic ethical and legal standards, potentially resulting in mistrust, rejection by stakeholders, and invalidation of the contract within Shariahcompliant frameworks. Implementing smart contracts for waqf donations can be challenging due to technical, legal, and Shariah compliance issues. But the key advantage lies in enhancing trust and transparency throughout the donation process, ensuring accountability and delivering benefits at every stage of the process. The objective of this research is to explore the role of smart contracts in facilitating waqf donations. Using a descriptive qualitative approach, this study involves conducting a literature review and gathering relevant data to gain deeper insights into how blockchain-based smart contracts can contribute to improving the efficiency, transparency, and trust in the waqf donation process. The findings suggest that smart contracts offer promising opportunities for improving transparency, operational effectiveness, and Shariah compliance in waqf management, ultimately strengthening donor confidence and ensuring better governance of endowment assets.

Item Type: Article (Journal)
Uncontrolled Keywords: Smart contracts, Blockchain, Waqf donation, Shariah Príncipes
Subjects: T Technology > T Technology (General) > T173.5 Technology and Islam
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Kulliyyah of Information and Communication Technology > Department of Information System
Kulliyyah of Information and Communication Technology > Department of Information System
Depositing User: Dr. Najhan Muhamad Ibrahim
Date Deposited: 09 Aug 2026 22:45
Last Update: 09 Aug 2026 22:45
Queue Number: 2026-08-Q4573
URI: http://irep.iium.edu.my/id/eprint/130599

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