Technological development has affected the global financial industry. The use of digital currency is increasingly gaining a place among the world’s population, so much so that there are 2486 types of digital currency on record. Scholars in Islamic finance as well as Fatwa institutions all over the world have delivered their religious decree concerning the digital currency; hence, most discussions about the use of the decree was only directed at Bitcoin as a medium of payment although some digital currencies have other functions, such as being utility and security tokens. Therefore, the decree concerning other digital currencies cannot apply the decree issued for Bitcoin only because each digital currency has a different conceptual framework. Hence, this study, which applied the qualitative approach and a descriptive research design, intended to analyse the classification of digital currencies according to their function and characteristics. The findings show that digital currency is classified into coins, currency, tokens, payment tokens, utility tokens and security or asset tokens. Coins function as a medium of payment and store of value that was developed using its own blockchain. Currency is a medium of exchange and can be exchanged with any form of money, including the crediting or debiting of an account. Tokens represent services, financial instruments or infrastructure that is developed using the blockchain technology of other digital currencies. Tokens are divided into three types according to their function, namely payment tokens, utility tokens and security or asset tokens. The classification of digital currencies provides a guideline for the public who wish to carry out transactions using digital currencies. It is important to ensure that transactions carried out in accordance with the syarak will help alleviate cases of fraud related to investment and sale of digital currencies.
Unclaimed inheritance retards the economy as well as the continuity of life, especially for beneficiaries who are less capable. Recorded cases of unclaimed inheritance have seen a yearly rise, and this also has an effect on the Malaysian economy, mainly due to the failure to distribute immoveable property, such as the failure to transfer the ownership of land and houses. This causes the land to become abandoned and underdeveloped. Hence, various measures are needed to solve the unclaimed inheritance problem and contemporary technology should be fully utilised to overcome this problem. This study intended to explore the benefits of blockchain technology for solving the unclaimed inheritance problem. Blockchain technology is a database system that replaces the traditional system with various advantageous, which makes organisational management more effective and systematic. This technology supports the implementation of a smart contract, which acts as a medium for managing inheritance distribution to ensure no beneficiaries is left out and receives the rightful share. A smart contract is an agreement in digital form that uses a certain protocol and only applies to the relevant parties. This study applied the qualitative approach and a descriptive research design. Data collected through document analysis and interview methods. Data from the document analysis method involved primary and secondary sources, while the semi-structured interview method was used for field studies. Findings showed that the blockchain technology is an appropriate solution for solving unclaimed inheritance problems. However, a blockchain based smart contract requires the cooperation between the party authorised to distribute inheritance property and the banks as well as other government agencies in order to ensure that the inheritance distribution process is carried out smoothly. This study benefits the authorities in charge of inheritance management as well as act as a guide for future researchers. This study offers a theoretical solution for solving the distribution of unclaimed inheritance by using blockchain based smart contract.
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