Blockchain Technology and The Future for Isalmic Sukuk

Abstract

Blockchain technology is rapildy emerging as one of the pillars of the Fourth Industrial Revolution. Just as the steam engine, electricity, mass production, and simple digitization led the first three industrial revolutions, the tremendous development in emerging digital technologies, and most recently, by the Blockchain technology, comes to push towards reconsidering the traditional systems supporting performance of our operaitons, as it opens the way for the transition from a centralized world to another, decentralized, self-moving one, with high transparency.

This paper reviews the wide possibilities offered by this technology and its impact on business sectors in general and the financial sector in particular, and how the Islamic sukuk market can exploit this technology to address some of the challenges that stand in the way of this market's reaching greater potential. The paper reviews this new technology and its applications in the field of sukuk and reviews the features of its application in the field of sukuk issuance, management and trading, sukuk related assets, and concludes with the need for Islamic banks and financial institutions to expand the use of this new technology with the supervisory authorities setting a regulatory framework that ensures its application in a disciplined manner.