HCS Score
85/100
These are absolute prohibitions in Islamic finance. If any red line is triggered, the asset is automatically classified as HARAM.
Riba Exposure
Not an interest-based lending or borrowing protocol
Gambling / Betting
No gambling or betting mechanism
Haram Industry
Not involved in haram industry
The asset is scored across 7 Shariah principles.
Based on Red Line Screening and HCS Scoring.
Halal
This cryptocurrency is evaluated as Halal for investment and use because it shows strong alignment with CoinStudy HCS principles.
Explanation
This asset demonstrates strong Sharia compliance with real utility and transparent financial structure.
Reviewed by
CoinStudy Shariah Board
Blockchain has an information problem.
Smart contracts are powerful but isolated. They can execute complex logic automatically and trustlessly — but only with data that already lives on the blockchain. The moment a smart contract needs real-world information — an asset price, a weather reading, a sports result, a stock value — it hits a wall. Blockchains cannot natively access data from the outside world.
This is called the oracle problem. And it's one of the most important infrastructure challenges in the blockchain industry. Without reliable external data, smart contracts are severely limited in what they can actually do.
Flare was built around solving this problem — and doing so in a way that's decentralized, trustless, and integrated with its broader vision of cross-chain blockchain interoperability.
We ran FLR through the full CoinStudy Halal Crypto Standard (HCS) methodology. Here's the complete picture.
Flare passes the CoinStudy HCS Sharia red-line screening with no violations. It scores 85 out of 100 and is classified as Halal. It has genuine blockchain interoperability and oracle infrastructure utility, no built-in interest mechanism, and a clear infrastructure-focused purpose.
Flare is a Layer 1 blockchain platform designed to improve connectivity between different blockchain networks while providing decentralized data access through oracle infrastructure. The ecosystem focuses on blockchain interoperability, decentralized data access, smart contracts, cross-chain communication, oracle infrastructure, and decentralized applications.
FLR tokens are used for transaction fees, governance participation, network operations, staking within the Flare oracle system, and ecosystem coordination. The token has clear functional utility tied to genuine infrastructure services.
Flare's two core innovations work together — the Flare Time Series Oracle (FTSO) provides decentralized price and data feeds to applications on the network, while cross-chain connectivity allows the network to interact with multiple blockchain ecosystems including XRP Ledger, Dogecoin, and others that lack native smart contract capabilities.
Flare's technical architecture centers on two distinct but complementary infrastructure services.
The Flare Time Series Oracle is a decentralized data provisioning system where FLR holders can participate as data providers — submitting price and data feeds and earning rewards for accurate, timely submissions. The system aggregates these submissions to produce reliable decentralized data feeds that smart contracts on the network can use. This is Flare's answer to the oracle problem — decentralized data that doesn't rely on any single trusted provider.
The interoperability component allows Flare to connect with multiple blockchain ecosystems — including XRP Ledger, Dogecoin, and others that were built before smart contracts existed. This enables these older, established networks to access smart contract functionality through Flare's infrastructure without changing their own protocols.
FLR staking for oracle participation is worth specific note. Token holders who participate as data providers earn rewards for contributing accurate data — a work-based reward model rather than a capital-for-yield lending arrangement.
For Muslim investors, understanding why oracle infrastructure is important for the Islamic finance assessment requires understanding what oracles actually enable.
Reliable decentralized data feeds are infrastructure — like roads or telecommunications — that enable many types of applications. They're used by payment applications that need exchange rates, by supply chain systems that need external data verification, by insurance applications that need real-world event data, and by many other use cases that create genuine economic value.
They're also used by DeFi lending protocols that need price feeds to manage collateral. This is where the indirect exposure concern comes from — oracle infrastructure is neutral, and it serves both halal and potentially problematic applications.
Flare's oracle services are infrastructure. Like any neutral infrastructure provider, the compliance of Flare itself doesn't depend on the compliance of every application that uses its data feeds. But the broader DeFi ecosystem exposure is honestly reflected in the Financial Exposure Risk deduction.
Flare is not built around lending markets, borrowing platforms, interest-generating products, debt-based finance, or fixed-return investment systems. The network primarily functions as blockchain infrastructure — oracle data provision and cross-chain interoperability.
At the protocol level FLR is completely free from Riba. The oracle participation model rewards data providers for genuine work — submitting accurate data feeds — rather than generating percentage returns on deposited capital through lending.
The score of 23 out of 25 on Financial Exposure Risk reflects this clean core with a small deduction for indirect exposure. Flare's oracle data is used by various DeFi applications including some that involve interest-like financial products. The infrastructure provider isn't responsible for all uses of its data, but the indirect ecosystem connection is honestly reflected.
Flare operates through transparent blockchain technology, clearly defined infrastructure services, identifiable technological utility, and publicly verifiable network functions. The oracle mechanism is documented and the data provisioning system operates transparently.
The Gharar score of 12 out of 15 reflects adequate transparency with deductions for adoption uncertainty and some complexity around how the cross-chain connectivity and oracle systems interact across multiple blockchain ecosystems.
Flare was not designed as a gambling platform or speculative financial product. Its focus is cross-chain interoperability and decentralized data infrastructure — consistently reflected in its technical design.
The Maysir score of 11 out of 15 reflects no gambling mechanics in the core infrastructure with acknowledgment of speculative market trading and some higher-risk DeFi ecosystem applications.
Flare clears every hard red line.
Riba Exposure — ✅ Passed. Not a lending or interest-based protocol.
Gambling and Betting — ✅ Passed. No gambling mechanism exists.
Haram Industry — ✅ Passed. No involvement in prohibited industries.
Guaranteed Interest — ✅ Passed. No guaranteed interest obligations.
Synthetic Interest Products — ✅ Passed. No synthetic interest instruments.
No red line violations were found. Flare is fully eligible for HCS scoring.
Flare is scored across 7 Shariah principles with a total of 100 points.
On Financial Exposure Risk, weighted at 25%, Flare scores 23 out of 25. Clean infrastructure protocol with small deductions for indirect DeFi ecosystem exposure through oracle data provision to various applications including some with interest-like financial mechanisms.
On Gharar and Uncertainty, weighted at 15%, Flare scores 12 out of 15. Transparent infrastructure with clear technological purpose. Deductions for ecosystem adoption uncertainty and competitive landscape considerations in the oracle and interoperability sector.
On Maysir and Speculation, weighted at 15%, Flare scores 11 out of 15. No gambling mechanics in the core infrastructure. Deductions for speculative market trading and higher-risk ecosystem applications.
On Underlying Business Activity, weighted at 15%, Flare scores 14 out of 15. Blockchain interoperability and decentralized oracle infrastructure are fully permissible and genuinely valuable economic activities. Small deduction reflecting the indirect DeFi ecosystem connections through oracle data provision.
On Utility and Real Use, weighted at 10%, Flare scores 9 out of 10. Genuine and demonstrated utility through oracle data provision and cross-chain connectivity. Small deduction for adoption levels that are still developing relative to the project's potential.
On Tokenomics Fairness, weighted at 10%, Flare scores 8 out of 10. Token distribution model has some concerns around initial allocations — common to blockchain projects that raised capital from institutional investors. The oracle participation reward model creates ongoing utility-based token distribution.
On Transparency and Governance, weighted at 10%, Flare scores 8 out of 10. Open-source infrastructure with transparent oracle mechanisms. Governance is active but still developing in maturity compared to older established networks.
Overall HCS Score: 85 out of 100 — Halal
Muslim investors evaluating oracle infrastructure will naturally compare Flare to Chainlink — which we analyzed and scored at 89 out of 100, also classified as Halal.
Both provide decentralized oracle data services. Both pass all Sharia red lines. The four-point difference between them reflects several meaningful distinctions.
Chainlink has a more established track record — it's been providing oracle services longer, across more blockchains, with more institutional adoption. Its Data Feeds are used by a wider range of applications across the blockchain ecosystem. That longer track record and broader adoption give it stronger scores on utility and governance maturity.
Flare's differentiation is its integrated Layer 1 approach — combining oracle infrastructure with cross-chain connectivity and smart contract functionality in a single network, with specific focus on connecting non-smart-contract blockchains like XRP Ledger to the smart contract world.
Both are halal oracle infrastructure investments. Chainlink scores higher reflecting its more established position. Flare represents a more integrated but less proven approach.
Flare has a notable connection to the XRP ecosystem — it was originally designed to bring smart contract functionality to XRP Ledger holders, and XRP holders were among the first recipients of FLR tokens.
Muslim investors who hold XRP and know its halal rating may find Flare's connection to the XRP ecosystem appealing. Flare's cross-chain infrastructure enables XRP Ledger to participate in smart contract applications without fundamentally changing XRP's own design.
This connection doesn't change the compliance assessment of either asset — each is evaluated on its own merits. But it does explain Flare's specific market positioning and why XRP community members have particular interest in the project.
Before investing in Flare, ask yourself honestly:
Do I understand what the Flare oracle system does and why decentralized data infrastructure creates genuine value for blockchain applications? Am I investing based on conviction in the oracle and interoperability infrastructure thesis — or following market trends? Do I understand the indirect DeFi ecosystem exposure that comes from providing oracle data to various applications? Is my investment strategy focused on long-term infrastructure value rather than short-term price movements? Am I comfortable with the adoption uncertainty that comes with a newer interoperability-focused network?
Flare rewards investors who understand the genuine infrastructure value of decentralized oracle services and cross-chain connectivity.
Flare (FLR) is generally considered halal under the CoinStudy Halal Crypto Standard with a score of 85 out of 100.
It serves a legitimate and genuinely useful technological purpose — providing decentralized oracle data and cross-chain interoperability infrastructure. It operates without built-in interest mechanisms. It provides real utility through infrastructure services that enable blockchain applications to access reliable external data and communicate across different networks.
The concerns — indirect DeFi ecosystem exposure through oracle data provision, adoption uncertainty, and competitive landscape considerations — are real and honestly reflected in the score. But they don't constitute Sharia violations. They are investment considerations that responsible Muslim investors should understand clearly.
For Muslim investors looking for blockchain oracle and interoperability infrastructure with clean compliance fundamentals and genuine technological utility — Flare is a credible halal option, particularly for investors interested in the XRP ecosystem connection and the specific approach to combining oracle services with cross-chain connectivity in a single network.
Disclaimer: This analysis is provided for educational and research purposes only. This analysis is based on guidance from CoinStudy's HCS Shariah Board members. CoinStudy does not issue personal fatwas or financial advice. Please consult a qualified Islamic scholar for individual guidance.
Guaranteed Interest
No guaranteed interest obligations
Synthetic Interest Products
No synthetic interest instruments
No Red Line Violations
This asset passed all Sharia red line checks.
Financial Exposure Risk
25%Indirect financial exposure to interest-based & yield products
Gharar / Uncertainty
15%Clarity in contracts and absence of excessive uncertainty
Maysir / Speculation
15%No gambling-like mechanics or high speculation design
Underlying Business Activity
15%The nature of the project's core business is permissible
Utility / Real Use
10%Genuine utility and real economic value
Tokenomics Fairness
10%Fair distribution, no exploitation, sustainable tokenomics
Transparency & Governance
10%Open-source, audited, clear governance structure
