#CryptoIntegration **Islamic finance or “Shariah-compliant finance”** and its relation to what could be on the blockchain and digital currencies:
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## 1️⃣ Basic Principles of Islamic Finance
Islamic finance is based on **Islamic law (Sharia)** and is characterized by the prohibition of riba (interest), gambling, and prohibited activities. The main principles are:
1. **Prohibition of riba (interest)**
* It is not permissible to earn interest from loans or investments that rely on a fixed interest rate.
2. **Transparency and Risk Sharing (Profit & Loss Sharing)**
* Profit and loss are shared between the investor and the project owner according to a prior agreement.
3. **Prohibition of Gharar (Gharar = ambiguity or excessive risk)**
* All terms of the contract must be clear, and it is not permissible to engage in speculative contracts or contracts with uncertain outcomes.
4. **Investment in legitimate activities**
* Investment in alcohol, gambling, prohibited products, or any unethical activity is not allowed.
