E-Murabaha – Islamic finance project on blockchain
Project overview
E-Murabaha is a modern digital software solution that facilitates Sharia-compliant financial services. It relies on the installments scheme and is based on the Corda blockchain. Combined, these approaches guarantee transparency and security of all transactions that involve banks, merchants, and buyers. We designed, built, and released mobile and web modules, the database, blockchain features, and all the back-end elements.
Client information
MIZA is a FinTech company focused on the development and distribution of finance solutions for SMEs and individuals. It pays close attention to Sharia-compliant financial services and tools. The company helps underbanked customers in accessing innovative digital financial offerings. What’s interesting, it was chosen as one of the top 100 leading Arabic organizations that contribute to the modern industrial transformation.
Business challenge
In Islamic countries, crediting is nearly impossible due to Sharia laws. According to the specific type of sales contracts known as Murabahah, individuals and entities can’t charge money for assets that they don’t own. Such contracts have a few core elements like assets, completion, currency, parties, etc. Our client MIZA wanted to build a digital Sharia-compliant solution to handle such contracts faster. Before the release, these operations were complicated and time-consuming. By combining innovations and traditional rules, we streamlined financial processes for Islamic customers.
Technical challenges
Using the blockchain infrastructure was a unique experience. We had to combine highly innovative solutions like CorDapps based on the Corda blockchain with time-proven traditions and Sharia requirements. The final goal was to guarantee proper transition of ownership rights from sellers to buyers, display date, and other information about transactions, specify costs and markups in contracts. As well, we had to add functionalities for other parties: MIZA itself, banks, and regulatory authorities.
Solution delivered
E-Murabaha is a web and a mobile app for merchants, buyers, and banks. It lets these parties engage in the Murabahah contracts and transfer ownership in a transparent and secure way. The system relies on the R3 Corda distributed ledger and R3 Corda smart contracts that provide the tech solution for making ownership transfers in a Shariah-compliant and verifiable way. Furthermore, the solution lets MIZA administrators control the system while representatives of regulatory bodies can check the transactions to approve their compliance.
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Key features
CorDapps development
Powered by smart contracts, distributed Corda applications help parties to engage in fair Murabahah contracts. The solution developed supports creation and interaction with custom CorDapps.
On-chain transactions monitoring
Authorities want to ensure that in-system on-chain transactions are Sharia-compliant. For this, they can check the essential data and verify that all the Murabahah rules are met.
Murabahah contracts analysis
Surely, E-Murabahah supports this type of contract to be agreed by buyers, sellers, and banks that act as intermediaries. Electronic contracts are much faster and simpler for all parties.
On-chain storage for ownership data
The Corda blockchain keeps the information about financial transactions. Thus, the related parties can be sure of security and fairness. Smart contracts also contribute to unbiased operations.
Registration and update processes
Users can create accounts and manage their contracts inside the applications easily. For MIZA admins, there’s a separate module that lets them verify operations.
Value to our client
Our tech stack
.NET Core
C#
Corda
Hasura
Kotlin
PostgreSQL
Python
React
React Native
