Non – Fungible Tokens (NFTs) : A Shariah Perspective

Non-fungible tokens (NFTs) have experienced an unprecedented surge in popularity in 2022. This growth has attracted attention from experts and researchers keen to understand the vast potential of NFTs, which have already impacted various industries, including arts, gaming, collectibles, films, music, and ticketing. NFTs can represent not only digital assets but also rights to physical assets, with ownership and registration done through a blockchain, usually the ethereum network, ensuring authenticity and transferability of ownership. However, while NFTs present significant opportunities for innovation and growth, their rapid rise has also raised concerns and questions, particularly regarding their compliance with Shariah rules and higher objectives. This research paper aims to investigate Shariah compliance concerns related to NFTs based on Islamic jurisprudence (fiqh) and examine whether NFTs comply with Shariah rules and objectives. Additionally, the paper will explore the legal and technical aspects of NFTs to gain a comprehensive understanding of this phenomenon. Although NFTs have the potential to facilitate secure transactions and safeguard asset ownership, it is crucial to address any potential Shariah compliance concerns. The paper will provide recommendations for future use of NFTs to ensure compliance with Shariah principles. By exploring the Shariah aspects of NFTs, the research aims to provide a deeper understanding of this emerging technology and its implications from a religious perspective.