While generally halal, a cryptocurrency can be haram if it is primarily used for haram purposes.
Therefore, we’ll examine this cryptocurrency’s utility to determine our level of comfort investing in it from a halal perspective.
What is Polygon and what is it used for?
Polygon aims to improve the speed and reduce the cost of transactions on Ethereum by processing these transactions outside the main Ethereum blockchain on a plethora of sidechains.
These sidechains can handle transactions for many decentralized applications at more attractive speeds and costs than what is available on the main Ethereum blockchain.
As such, Polygon is considered a “Layer-2” or add-on to the Ethereum blockchain.
Since we are comfortable with Ethereum’s utility in terms of providing a platform for Smart Contracts and Decentralized Applications (Dapps), we are by extension comfortable with technologies that enable Ethereum to provide its utility to end users quicker and cheaper which is what Polygon does.
Is Polygon Halal?
PIF is comfortable investing in Polygon from a halal perspective.