What is Sidra Chain? The world's first interest-free blockchain revolutionizing Islamic finance

Sidra Chain is the world’s first blockchain platform specially designed for Shariah compliance, forked from Ethereum and using a Proof of Work (PoW) mechanism to provide interest-free financial transactions that meet halal standards. The project was founded by Qatari entrepreneur Dr. Mohammed Al Jefairi (MJ), with a target market covering the world’s 1.8 billion Muslims.

Why Islamic Finance Needs a Dedicated Blockchain

Islamic finance prohibits the charging of interest (Riba) and investment in certain industries (such as alcohol, gambling, pork products), which fundamentally conflicts with the logic of traditional financial systems. Of the approximately 1.8 billion Muslims globally, most live in the Middle East, North Africa, Southeast Asia, and South Asia, where there is huge demand for Shariah-compliant financial products that traditional banking systems cannot effectively meet.

The core innovation of Sidra Chain is that it does not simply put a “halal” label on an existing blockchain, but rather follows Islamic financial principles from the ground up. All transactions must be based on real assets or services, and speculative derivatives trading is prohibited; smart contracts have built-in Shariah compliance checks that automatically filter out non-compliant transactions; sources of revenue must be transparent and ethical, and cannot come from gambling, alcohol, or other prohibited industries.

This design enables Sidra Chain to provide services that traditional blockchains cannot. For example, the core logic of decentralized finance (DeFi) is “deposit to earn interest”, but this is classified as interest (Riba) and is forbidden in Shariah. Sidra Chain’s solution is a “profit-sharing” model: investors and the platform share risk and distribute profits based on actual earnings instead of fixed interest rates, in accordance with the Islamic principle of “shared risk”.

Sidra Chain Technology Architecture and Ecosystem

Sidra Chain is forked from Ethereum but uses Proof of Work (PoW) as its consensus mechanism instead of Ethereum’s Proof of Stake (PoS). This decision is based on careful consideration: some Islamic finance scholars question whether PoS is Shariah-compliant, as its “staking to earn” logic is similar to earning interest on deposits. In contrast, PoW miners are rewarded for providing computing power and energy, which is regarded as “labor compensation” rather than “unearned interest”, making it easier to gain Shariah approval.

The platform consists of four core components. Sidra Chain Network is the underlying blockchain technology, providing decentralized transaction records and a smart contract execution environment. Sidra Coin is the digital currency used within the system for transaction fees and participation in ecosystem activities. Sidra Bank is a digital banking service built on Sidra Chain, offering Shariah-compliant savings and transfer functions. SidraClubs are community organizations promoting Sidra Chain globally through partnerships with local partners.

Sidra Chain’s Three Core Use Cases

Cross-border remittances: Makes international money transfers more convenient and cost-effective, especially in the Middle East and Southeast Asia where there are large populations of Muslim workers

Halal supply chain tracking: Records the entire process from production to sales on-chain, ensuring products meet halal standards and are traceable

Shariah-compliant financing: Helps Islamic businesses raise funds in a Shariah-compliant manner, avoiding the interest issues of traditional bonds

Sidra Chain features a functioning blockchain, mobile application, and ways to earn Sidra Coin. While there is an interested community, there are also some technical issues and a need for more comprehensive information.

KYC Strategic Deployment Targeting Core Muslim Markets

In May 2025, Sidra Chain announced the launch of its KYC process in Nigeria and Indonesia. Both countries have large Muslim populations, with Nigeria home to over 100 million Muslims and Indonesia the world’s largest Muslim-majority country, with more than 230 million Muslims. This strategic move involves appointing local KYC companies to handle identity verification for citizens of these countries, marking an important step for Sidra Chain in improving user security and regulatory compliance.

Implementing robust KYC processes is crucial for security, regulatory compliance, and platform integrity. After successfully completing the KYC process, users will receive a green verification badge, enhancing their credibility on the platform. Verified users will be able to perform peer-to-peer transactions and other identity-verified platform functions, and may be eligible to participate in Sidra Chain projects.

GLNs Global Drives Real-world Adoption

The core of Sidra’s growth is GLNs Global, a blockchain enterprise group focused on ethical finance, logistics, and tokenization of real-world assets (RWAs). GLNs has three flagship startups: GLNs Logistics connects shippers worldwide through blockchain for transparent and efficient freight and supply chain operations; AirLand integrates air and road taxi services, offering secure payments and tracking; REGs Global is the world’s first Shariah-compliant tier-one centralized exchange, trading over 10,000 halal tokens.

These startups are crucial to the Sidra ecosystem, driving RWA tokenization, enhancing liquidity, and ensuring compliance with Islamic principles, thereby fostering inclusive growth.