IBF Net Launches Blockchain-Based Relationship-Based Transactions Ecosystem

IBF Net (L) Ltd is spearheading an innovative blockchain-based initiative under its flagship Digital IBF Lab to revolutionize Relationship-Based Transactions (RBTs). This transformative ecosystem is designed to enhance trust, transparency, and efficiency across sectors, including philanthropy, social finance, and commerce.

What Are Relationship-Based Transactions?

Relationship-Based Transactions (RBTs) involve repeated interactions between donors, beneficiaries, and intermediaries, fostering trust, loyalty, and long-term relationships. Unlike traditional one-time payments, RBTs cater to recurring needs, aligning with the principles of Islamic social finance.

Blockchain-Powered Philanthropy: A Game-Changer

Under its new initiative, IBF Net is integrating blockchain technology to enhance the Islamic charity ecosystem, covering donations like zakat, sadaqah, and cash waqf.

Key Features of the RBT Ecosystem:

• Recurring Micro-Payments: Facilitated through “RecurPay” on the Tezos blockchain, enabling donors to make automated micro-payments.
• Transparency: Blockchain’s distributed ledger technology ensures complete transparency, reducing the risk of mismanagement.
• Donor Engagement: Donors can track the impact of their contributions, ensuring milestones are met before funds are released.
• Cost Efficiency: Lower intermediation costs make it easier for donors and beneficiaries to connect.
• Crypto-Donors: Attracts tech-savvy donors interested in using cryptocurrencies for charity.

Mohammed Alim, CEO of IBF Net, highlights that this system fosters a “feel the impact as you give” model, creating a deeper connection between donors and beneficiaries while mitigating donor attrition risks.

RecurPay: A Unique Solution for Automated Giving

The RecurPay system leverages Tezos blockchain to:

• Automate recurring payments for charity projects.
• Ensure that funds are released based on the achievement of predefined milestones.
• Enhance trust and security for all stakeholders, including NGOs, governments, and donors.

This platform aligns with the renewed focus on Islamic social finance, offering a transparent and secure way for zakat, sadaqah, and waqf contributions.

Expanding Beyond Charity: Blockchain in Halal Trade

In its next phase, IBF Net aims to extend the RBT ecosystem to trade and commerce, particularly focusing on halal businesses. Dr. Mohammed Obaidullah, an expert in Islamic finance, emphasizes that Shariah allows flexibility in transactions, such as deferred payments and varied terms for sale and delivery.

Future Applications in Trade and Commerce:

• Platforms will facilitate relationship-based transactions in halal goods and services.
• Blockchain will enable recurring exchanges with transparency and efficiency.
• Enhanced flexibility in price, quality, and payment terms will align with Shariah principles.

This approach opens new doors for global halal trade by ensuring secure, recurring, and mutually beneficial transactions.

Benefits of the Blockchain-Based RBT Ecosystem

1. Enhanced Trust: The immutable nature of blockchain records fosters trust among donors, beneficiaries, and intermediaries.
2. Greater Transparency: Complete visibility of transactions ensures accountability.
3. Cost Reduction: Automation and reduced intermediation costs benefit stakeholders.
4. Global Reach: The system supports NGOs, charities, and governments worldwide, expanding donor bases.
5. Innovative Commerce: Enables secure, recurring halal transactions.

FAQs About Blockchain-Based RBTs

1. What is RecurPay?
RecurPay is a blockchain-based system that automates recurring micro-payments for charitable contributions, ensuring funds are released only when milestones are met.

2. How does blockchain enhance Islamic social finance?
Blockchain provides transparency, security, and cost efficiency for Islamic charity payments, attracting more donors and ensuring funds are used effectively.

3. Can this system support global charities?
Yes, the platform is designed to serve international NGOs, governments, and charities by offering trust, transparency, and scalability.

4. What are the next steps for IBF Net’s RBT ecosystem?
IBF Net plans to expand its blockchain platform to halal trade, supporting recurring transactions and enhancing commerce in alignment with Shariah principles.

5. How does this initiative attract crypto-donors?
The use of blockchain and cryptocurrencies appeals to tech-savvy donors who prefer secure and transparent digital transactions.

Conclusion

IBF Net’s blockchain-based RBT ecosystem is a groundbreaking step in transforming Islamic philanthropy and halal trade. By integrating RecurPay for automated recurring payments and exploring new avenues in commerce, this initiative promises to reshape the future of Islamic social finance with trust, transparency, and innovation.

Explore how blockchain is revolutionizing Islamic social finance and commerce with IBF Net’s RBT initiative!

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