BLOCKCHAIN

APPLICATIONS IN ISLAMIC COOPERATIVE

Department of Financial Economics, Money & Banking

Fatoni University
Blockchain
Smart contract

Department of Financial Economics, Money & Banking

Fatoni University
Blockchain in current &
possible practice
Smart
Health condom Currency
inium

Car Marriage/
Rental divorce

Government
Driver Insurance
License claim

Department of Financial Economics, Money & Banking

Fatoni University
 Blockchain that
support the smart
contract

1. Bitcoin -
2. Ethereum – Design for smart contract. We can design
our contract pay by Ethereum
3. Stellar - Future Smart contract.
4. NXT – instant smart contract

Department of Financial Economics, Money & Banking

Fatoni University
Blockchain- Possible
Applied in Islamic
Cooperatives in Thailand

Mutual
Account

Department of Financial Economics, Money & Banking

Fatoni University
Blockchain- Possible
Applied in Islamic Conditions
Amount of Saving
Cooperatives in Thailand Use of fund
Training

Mutual
Account

If the conditioned are met, the money

will transferred to member.

Department of Financial Economics, Money & Banking

Fatoni University
Blockchain- Possible
Applied in Islamic Conditions
Amount of Saving
Cooperatives in Thailand Use of fund
Training

Mutual
Account

If the conditioned are not met, the

money will transferred back to the
Cooperatives. (Void)

Department of Financial Economics, Money & Banking

Fatoni University
Blockchain- Possible Conditions
Applied in Islamic Amount of Saving
Use of fund
Cooperatives in Thailand Training

If the conditions are completed

it can be executed for action
immediately.
Department of Financial Economics, Money & Banking And the SM#2 will be voided.
Fatoni University
 Blockchain - What is your
possible question about it?

✓ We are not only exchanging the money

✓ We are exchanging the Document, Privacy and Asset
Who are we going
✓ Our exchanging is very transparent, Public to blame or report?

Error in
Blockchain?
Who is
programmer of
Bitcoin?
What is going to be
if the error of
Blockchain causing
someone to die?
Department of Financial Economics, Money & Banking
Fatoni University
Blockchain - What if?

Caution!
Fake Bitcoin?

Scammer? Malware?

Real owner?
Lost wallet? Money launder
Department of Financial Economics, Money & Banking
Fatoni University
Why bank need the Blockchain not
database?

Reduce element
Higher Tust? of Gharar

Reduce the Fast Efficient

Cost? transaction

Higher More Shariah

Security? compliance

Department of Financial Economics, Money & Banking

Fatoni University
Department of Financial Economics, Money & Banking
Fatoni University
Which one we going to use?

Shariah Transaction
compliant Volume transaction/sec
Bitcoin – 7
Ethereum – 20
Confirmation Transaction VISA – 65,000

Time cost

Minutes / sec
Bitcoin – 30 -50
Ethereum – 3-5
VISA – 3 sec !!

Department of Financial Economics, Money & Banking

Fatoni University
What is the trade off? ❖ Bitcoin – Secure but very slow
❖ Ethereum – High Decentralized
but high cost
❖ Ripple – Low cost – Fast -
centralized
❖ Stellar - Low cost – very fast -
centralized

✓ Fast
The more
✓ Low cost
Centralized
✓ Secure

The more
✓ Decentralized Expensive, Slow,
Secure

Department of Financial Economics, Money & Banking

Fatoni University
What is the future
Blockchain for Islamic
Finance?

• Blockchain is not the solution for everything

in Islamic Finance, its can use as Leverage.
• Use the most efficient way of Blockchain.
• Its already in our home.!!!

Department of Financial Economics, Money & Banking

Fatoni University
 Thank you

Department of Financial Economics, Money & Banking

Fatoni University