Publication: The Development And Application Of The Zakat Collection Blockchain System
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Date
2023
Journal Title
Journal ISSN
Volume Title
Publisher
Virtus Interpress
Abstract
Zakat in Islam has historically been a vital institution in fulfilling religious needs and social welfare. Its effectiveness in medieval and modern Islam is evident. However, this institution is seemingly not without inefficiencies. Ineffectiveness distribution process and lack of transparency in the zakat management are commonly cited as key impediments (bin Khatiman et al., 2021). Blockchain is expected to solve these issues due to its ability to record and trace every transaction, allowing administrators to discharge their accountability to zakat stakeholders. Thus, this study intended to develop a zakat collection blockchain system with the aim to provide economical and integrated continuous real-time zakat transactions, transparency and traceability by developing smart contracts in zakat management. The study employed four stages of process based on waterfall model starting from the interview session and analyse of the standard operating procedure (SOP) on zakat collection in the Zakat Collection Centre or Pusat Pungutan Zakat-Majlis Agama Islam Wilayah Persekutuan (PPZ-MAIWP). Then, design requirement specification (DRS) is employed after being reviewed and approved by PPZ-MAIWP. The results show that the development of blockchain in the zakat collection system could be eradicating extreme poverty and boost shared prosperity among the community in the country. The study contributes through a transparent and reliable environment for exchanging data and carrying out transactions through a decentralized digital ledger technology to record anything of value and as a result able to ensure transparency, reliability, trust ability and traceability of the zakat transactions.
Description
Volume 12 2023 Issue 1 (special issue) Page (294-306)
Keywords
Blockchain, Fintech, Smart Contract, Islamic Finance, Zakat, Malaysia
Citation
Khairi, K. F., Laili, N. H., Sabri, H., Ahmad, A., Pham, V. H., & Tran, M. D. (2023). The development and application of the zakat collection blockchain system [Special issue]. Journal of Governance & Regulation, 12(1), 294–306. https://doi.org/10.22495/jgrv12i1siart9