Blockchain-Based Waqf Management System: Islamic Social Finance Transparency and Accountability Solution

Abstract

This research aims to examine the application of blockchain technology in waqf management systems, with a primary focus on how this technology can improve transparency, accountability, and efficiency in the management of Islamic social funds. Blockchain, with its ability to record transactions decentrally and permanently, offers a very potential solution to address key issues in waqf management, such as unclear record-keeping, difficulties in fund distribution, and weak oversight. The method used in this study is an in-depth literature review, by analyzing various recent studies that discuss the application of blockchain in waqf management. The study also evaluated examples of blockchain implementation on waqf in several countries with large Muslim populations, such as Indonesia, to see the potential impact of this technology in improving waqf management. The results show that blockchain can address major challenges in waqf management, particularly in terms of transaction transparency and better supervision. By using blockchain, every transaction of waqf funds can be tracked in real-time, thereby reducing the risk of misuse of funds and increasing public trust in the waqf system. The implications of this study suggest that the application of blockchain in waqf management can strengthen Islamic social financial governance and support further development in the Islamic philanthropic sector, by ensuring that waqf funds are used in accordance with predetermined social and economic objectives.