BLOCKCHAIN-BASED WAQF MANAGEMENT: REDESIGNING TRANSPARENCY AND ACCOUNTABILITY IN ISLAMIC PHILANTHROPY
Article Sidebar
-
Blockchain, Waqf, Islamic Philanthropy, Transparency
Abstract
Waqf, a pivotal institution of Islamic philanthropy, holds immense potential for socio-economic development. However, its effectiveness is often hampered by traditional management practices that suffer from operational inefficiencies, a lack of transparency, and a deficit of public trust, which ultimately limits its growth and impact. This study aims to design and propose a conceptual framework for a blockchain-based waqf management system to enhance transparency, accountability, and stakeholder trust in the administration of waqf assets. A qualitative, design science research methodology was adopted. The study involved a systematic literature review to identify critical governance challenges in conventional waqf management, followed by the architectural design of a decentralized waqf management model. This model leverages smart contracts to automate and secure key processes, ensuring all transactions are immutable and auditable. The proposed blockchain model demonstrates a significant capacity to mitigate core governance issues. Its decentralized ledger allows for the transparent, real-time tracking of waqf donations, asset utilization, and the distribution of proceeds to beneficiaries (mauquf ‘alaih). This immutable record-keeping drastically reduces the potential for fraud and mismanagement, thereby fostering unprecedented accountability. The integration of blockchain technology presents a transformative pathway to revitalize the waqf sector. By re-engineering the foundations of trust and transparency, this model can significantly enhance public confidence, attract more endowments, and unlock the full potential of waqf as a sustainable instrument for global socio-economic empowerment.
Full text article
References
Abdullah, A. A. H., Al-Hattami, H. M., Al-Hakimi, M. A., & Al Koliby, I. S. (2024). Blockchain adoption and its impact on sustainability of accounting education. Environment, Development and Sustainability. https://doi.org/10.1007/s10668-024-05466-9
Abou Daya, M. H., & Bernard, C. (2024). Smart contract tontines. Applied Economics. https://doi.org/10.1080/00036846.2024.2393446
Alam, M. I., Sahoo, S., Sharma, S., & Verma, A. (2025). Barterchain: a blockchain-based barter system in smart cities. Digital Finance. https://doi.org/10.1007/s42521-025-00133-8
Alora, A., Sasidharan, A., & Dsouza, J. (2025). Blockchain integration in supply chain finance: a catalyst for improved cost of capital. Managerial Finance. https://doi.org/10.1108/MF-12-2024-0913
Alshater, M., Nasrallah, N., El Khoury, R., & Joshipura, M. (2024). Deciphering the world of NFTs: a scholarly review of trends, challenges, and opportunities. Electronic Commerce Research. https://doi.org/10.1007/s10660-024-09881-y
Amarnadh, V., & Moparthi, M. N. (2025). A Consensus Blockchain-Based Credit Risk Evaluation and Credit Data Storage Using Novel Deep Learning Approach. Computational Economics. https://doi.org/10.1007/s10614-025-10905-4
Belikoff, V., & Blazsek, V. (2025). A systematisation of legal-regulatory risks related to central bank digital currencies: a comparative analysis of the US, the UK and China. Law and Financial Markets Review. https://doi.org/10.1080/17521440.2025.2526326
Bhambhwani, S. M. (2025). Governing Decentralised Finance. International Journal of Finance and Economics. https://doi.org/10.1002/ijfe.3157
Bin-Nashwan, S. A., Mohamed, I., Muneeza, A., Sadallah, M., Ya’u, A., & Ma’aji, M. M. (2025). “I intend to pay zakat on cryptocurrencies (CCs) but…”: an empirical analysis of CCs holders. International Journal of Ethics and Systems. https://doi.org/10.1108/IJOES-11-2024-0376
Bouebdallah, N., Ajili Ben Youssef, W., & El Bouhali, M. (2025). Factors determining big four auditors’ intentions to use blockchain technology: a mixed-methods approach. Asian Review of Accounting. https://doi.org/10.1108/ARA-01-2025-0005
Canidio, A. (2025). Financial Incentives for the Development of Blockchain-Based Platforms. Journal of Industrial Economics. https://doi.org/10.1111/joie.70010
Chen, M., Wei, Y., & Wang, S. (2025). Past and Future of Cryptocurrencies: A Survey Using Bibliometric Methods. Journal of Economic Surveys. https://doi.org/10.1111/joes.12700
El-Chaarani, H., Mawad, J. L., Mawad, N., & Khalife, D. (2024). Psychological and demographic predictors of investment in cryptocurrencies during a crisis in the MENA region: the case of Lebanon. Journal of Economic and Administrative Sciences. https://doi.org/10.1108/JEAS-07-2022-0165
Fang, X. (2025). Blockchain applications and corporate green development: evidence from China. Environment, Development and Sustainability. https://doi.org/10.1007/s10668-025-06097-4
Garg, A., Raut, R. D., Kumar, M., Sharma, M., Paul, S. K., & Gokhale, R. S. (2025). Adoption roadblocks of blockchain technology to achieve the sustainable development goal in perishable food supply chain. Environment, Development and Sustainability. https://doi.org/10.1007/s10668-025-06545-1
Ibraheem, M. R., Hassan, E., Abed, S. A., Kamil, I. S., & Talaat, F. M. (2025). Deep Learning Predictions for Bitcoin Market Price and Illegitimate Activity Classification. Computational Economics. https://doi.org/10.1007/s10614-025-11093-x
Kang, P., Ko, Y., Youm, S., Chun, Y., Davis, S., & Connaughton, D. (2025). Application of machine and deep learning techniques on sport non-fungible token tweets: exploration of perceived values and risks. International Journal of Sports Marketing and Sponsorship. https://doi.org/10.1108/IJSMS-07-2024-0170
Kim, J.-E., & Lee, Y. (2024). Racial disparities and potential channels in the NBA digital collectibles market. Applied Economics. https://doi.org/10.1080/00036846.2024.2416721
Kumar, A., Kumar, S., & Tiwari, S. (2025). Unlocking blockchain technologies potential in supply Chains: A study on cost governance and dynamic capabilities perspective. International Journal of Production Economics. https://doi.org/10.1016/j.ijpe.2025.109774
Li, J., & Wu, H. (2024). Blockchain and deep learning technology for comprehensive improvement of transaction information quality. Electronic Commerce Research. https://doi.org/10.1007/s10660-024-09923-5
Liu, A., Jahanshahloo, H., Chen, J., & Eshraghi, A. (2023). Trading patterns in the bitcoin market. European Journal of Finance. https://doi.org/10.1080/1351847X.2023.2241883
Liu, J., Zhang, Z., Xu, Z., Li, Y., Yuan, D., & Chen, S. (2025). Risk monitor system for blockchain-based security issuing system. Electronic Commerce Research. https://doi.org/10.1007/s10660-025-09999-7
Lu, Q., Lu, W., & Tao, Z. (2025). Unlocking the potential of blockchain in enterprise upgrading: Insights from resource orchestration theory. International Journal of Production Economics. https://doi.org/10.1016/j.ijpe.2025.109707
Ma, D., Shao, W., Zhang, K., & Hu, J. (2025). Marketplace, wholesale or hybrid: considering the role of blockchain implementation in countering consumer mistrust. Electronic Commerce Research. https://doi.org/10.1007/s10660-024-09941-3
Manahov, V., & Li, M. (2025). A note on the relationship between digital assets and the energy markets: new evidence from the most prominent crypto heists. European Journal of Finance. https://doi.org/10.1080/1351847X.2024.2449022
Mark-Denis, M., Rus, A. V, & Bako, E. D. (2025). The digital finance and FinTech adoption effects amidst the slowbalization framework: a comparative analysis of the European Union and Japan. Digital Finance. https://doi.org/10.1007/s42521-025-00141-8
Marku, E., Di Guardo, M. C., Patriotta, G., & Allen, D. G. (2024). Technology Emergence as a Structuring Process: A Complexity Theory Perspective on Blockchain. Journal of Management. https://doi.org/10.1177/01492063241247496
Mazumder, P. T. (2025). Blockchain in trade finance: reducing fraud and improving efficiency through digital ledger technology. Digital Finance. https://doi.org/10.1007/s42521-025-00157-0
Noda, S., Okumura, K., & Hashimoto, Y. (2025). An Economic Analysis of Difficulty Adjustment Algorithms in Proof-of-Work Blockchain Systems. International Economic Review. https://doi.org/10.1111/iere.70028
Repetto, M., Colapinto, C., Jayaraman, R., Appio, F., & Torre, D. L. (2025). Blockchain-enabled predictive digital twin approach for healthcare: Enhancing accuracy and performance with federated learning. International Journal of Production Economics. https://doi.org/10.1016/j.ijpe.2025.109768
Rico-Peña, J. J., Arguedas-Sanz, R., & López-Martín, C. (2024). Transactions Market in Bitcoin: Empirical Analysis of the Demand and Supply Block Space Curves. Computational Economics. https://doi.org/10.1007/s10614-024-10775-2
Rokni, S. F., & Yavari, M. (2025). Exploring Non-Fungible Tokens: A Bibliometric Analysis and Future Research Opportunities. Journal of Economic Surveys. https://doi.org/10.1111/joes.70022
Saggese, P., Segalla, E., Sigmund, M., Raunig, B., Zangerl, F., & Haslhofer, B. (2024). Assessing the solvency of virtual asset service providers: are current standards sufficient? Applied Economics. https://doi.org/10.1080/00036846.2024.2396640
Sahoo, S., Kumar, S., & Vyas, M. (2025). How Does Blockchain Technology Contribute to the Development and Functioning of Smart Cities? A Scoping Review and Future Research Directions. Journal of Economic Surveys. https://doi.org/10.1111/joes.12679
Shahzad, F., Ben-Zaied, Y., Zhang, Q., & Tseng, M.-L. (2025). Exploring the impact of blockchain technology adoption on sustainable supply chain performance. International Journal of Production Economics. https://doi.org/10.1016/j.ijpe.2025.109762
Son, B., Park, S., Lee, J., & Jang, H. (2025). Optimal Strategy in Blockchain Transaction Issuances with CIR Process. Computational Economics. https://doi.org/10.1007/s10614-024-10839-3
Sun, Z., Shi, B., & Liu, J. (2025). Pricing, emission reduction and coordination for maritime supply chain with risk-averse members in the blockchain era. Environment, Development and Sustainability. https://doi.org/10.1007/s10668-025-06195-3
Wang, Z., Yu, L., & Zhou, L. (2024). Navigating the Blockchain-Driven Transformation in Industry 4.0: Opportunities and Challenges for Economic and Management Innovations. Journal of the Knowledge Economy. https://doi.org/10.1007/s13132-024-02007-7
Xu, X., Li, N., Zheng, S., Cheng, T. C. E., & Liu, H. (2025). Blockchain adoption under integrated and differentiated pricing strategies in the farm-adopted mode. International Journal of Production Economics. https://doi.org/10.1016/j.ijpe.2025.109778
Yang, L., Lan, L., & Wan, Y. (2024). Recycling and differential pricing strategies in closed-loop supply chains considering blockchain. Electronic Commerce Research. https://doi.org/10.1007/s10660-024-09831-8
Yi, H. (2023). An Efficient E-Voting System for Business Intelligence Innovation Based on Blockchain. Journal of the Knowledge Economy. https://doi.org/10.1007/s13132-023-01560-x
Zhang, J., Gao, Y., & Alam, S. (2025). A Visual Analysis of Hotspots and Frontiers in Blockchain Based on Scientific Knowledge Map. Journal of the Knowledge Economy. https://doi.org/10.1007/s13132-025-02644-6
Zhou, P., & Zhang, Y. (2025). Major Conundrums and Possible Solutions in DeFi Insurance. International Journal of Finance and Economics. https://doi.org/10.1002/ijfe.3154
Authors
Copyright (c) 2025 Ahmad Mu'is, Emine Yildiz, James Smith
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
