The Role of Blockchain Technology in the Management of Waqf

Waqf has historically been a vital institution in Islam in fulfilling religious needs and improving social welfare. Its effectiveness in medieval and modern Islam is evident. However, this institution is seemingly not without inefficiencies. Public trust and contributions are also low due to the opacity of the accounting and accountability system. Scholars have proposed adopting the blockchain technology to mitigate these issues. The implementation of the blockchain technology is to provide a solution for waqf organisations towards offering transparency to their donors and building trust to gain more support towards the waqf organisation’s mission and work. The blockchain technology manages information within the waqf system by enhancing the aspects of transparency and reliability in how funds are collected, managed, and distributed. This study has two objectives: first, to look into the technological role of blockchain in managing waqf assets in ensuring the most efficient way of financing waqf projects. Second, this research is aimed at exploring and understanding the blockchain technology regarding the issues of trust and accountability in waqf organisations in Malaysia. The study methods consisted of content analysis and an interview. The content analysis focused on publicly accessible information online such as home pages, websites, user interface pages, and annual and financial reports. The semi-structured interview was carried out with a representative of a waqf organisation who has extensive knowledge of these technologies. This article is an effort to contribute to the body of knowledge by exploring blockchain technology’s potential applications and their limits.