Blockchain as A Waqf Disruptor: Lessons Learned from Finterra's Waqf Chain

The waqf sector encompasses considerable wealth that has accumulated since the dawn of Islam and has played a prominent role in social welfare and socioeconomic development. However, this role declined due to inefficiencies and the loss of public trust in waqf caused by corruption, mismanagement, and neglect. The emergence of blockchain technology could disrupt the waqf sector and restore public trust by offering features that enhance transparency and governance and facilitate donations to channel increased liquidity toward the development of idle assets. It also enables cause-based donations and coded contractual stipulations to strengthen governance. To assess the potential for successful implementation of blockchain-based waqf, this paper reviews the applicability of prevalent blockchain adoption challenges to the existing ecosystem and suggests possible enhancements. The research indicates that whereas a blockchain waqf platform was launched by Finterra through its Waqf Chain, several challenges face blockchain adoption that represents severe impediments to a successful proliferation of the technology.