HCS Score
88/100
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
Privacy in the digital age is becoming one of the most contested and important infrastructure problems in technology.
Every interaction you have online leaves a data trail. Every transaction on a public blockchain is visible to anyone who wants to look. For individuals and businesses who need to share information selectively — verifying something is true without revealing everything — the internet and most blockchains offer inadequate tools.
Midnight addresses this problem through one of the most sophisticated cryptographic approaches in the blockchain space — programmable privacy using zero-knowledge proofs. The ability to prove something is true without revealing the underlying data has profound implications for digital identity, enterprise applications, financial privacy, and any use case where selective disclosure is necessary.
For Muslim investors, Midnight has additional relevance — it was built by Input Output Global, the same organization behind Cardano, which we analyzed and scored at 90 out of 100 as one of the highest-rated projects in our series.
We ran NIGHT through the full CoinStudy Halal Crypto Standard (HCS) methodology. Here's the complete picture.
Midnight passes the CoinStudy HCS Sharia red-line screening with no violations. It scores 88 out of 100 and is classified as Halal. It has strong privacy infrastructure utility, perfect scores on both Underlying Business Activity and Utility and Real Use, no built-in interest mechanism, and the institutional credibility of the Input Output Global pedigree behind Cardano.
Midnight is a privacy-focused blockchain developed by Input Output Global — the research organization that built Cardano. The network is designed to provide programmable privacy through zero-knowledge cryptography while supporting decentralized applications, digital identity solutions, and privacy-preserving smart contracts.
The NIGHT token serves as the network's native utility and governance asset. Midnight also uses a secondary token called DUST for network operations and transaction execution — a dual-token architecture designed to separate governance from operational resource consumption.
The core mission is enabling users and applications to process information while keeping sensitive data private — allowing verification and auditability where required while protecting what should remain confidential.
Midnight uses zero-knowledge proofs — a cryptographic technique that allows one party to prove to another that a statement is true without revealing any information beyond the truth of that statement.
In practice, this means a user can prove they meet a requirement — they're over 18, they have sufficient funds, they have a valid credential — without revealing their actual age, their exact balance, or the details of their credential. The prover demonstrates truth without revealing data.
This capability has enormous practical implications. A medical record system can verify a patient's diagnosis without exposing their full medical history. A financial compliance system can verify regulatory requirements without sharing confidential transaction data. A digital identity system can authenticate users without revealing personal information beyond what's necessary.
Midnight's smart contract language — Compact — allows developers to write applications that explicitly specify which data is public and which remains private, giving precise control over information disclosure at the application level.
Input Output Global's role as the developer behind both Cardano and Midnight is significant for the assessment.
Cardano scored 90 out of 100 in our analysis — one of the highest in the series — with particular strength in governance (9/10) and research-driven development. IOG's approach emphasizes peer-reviewed research, formal verification, and rigorous academic methodology applied to blockchain engineering.
Midnight inherits this institutional discipline. The zero-knowledge cryptography research behind Midnight isn't marketing — it's the output of serious cryptographic research conducted by IOG's teams with academic backgrounds. The technical foundation is more rigorous than most blockchain projects.
For the Gharar assessment specifically, IOG's institutional track record reduces uncertainty about technical execution. This is a team with a demonstrated history of delivering technically complex blockchain systems. That credibility contributes to Midnight's score.
Privacy-preserving infrastructure has specific relevance for Muslim investors and communities that deserves acknowledgment.
Muslim communities globally deal with real privacy concerns — information about religious practice, financial dealings, family situations, and community affairs that individuals have legitimate interests in controlling. Digital systems that require sharing more information than necessary create genuine problems for privacy rights.
Zero-knowledge proof infrastructure that enables selective disclosure — prove what needs to be proven, protect what should remain private — aligns meaningfully with Islamic values around the sanctity of private life. The concept of sitr — covering or protecting — has deep roots in Islamic ethics around privacy and dignity.
Technology that gives individuals genuine control over their information rather than forcing full disclosure to participate in digital systems has practical value for Muslim communities seeking to participate in digital economies without sacrificing privacy.
Midnight scores a perfect 10 out of 10 on Utility and Real Use — reflecting genuine and important real-world applications for privacy-preserving blockchain infrastructure.
Enterprise applications with confidentiality requirements — healthcare data, financial compliance, intellectual property, supply chain confidentiality — all represent real market demand for the kind of programmable privacy Midnight provides. Digital identity systems that need to verify credentials without revealing everything they know about a person represent another growing market.
The perfect utility score reflects that Midnight addresses genuine and growing real-world needs rather than theoretical future use cases.
Midnight is not built around lending markets, borrowing services, savings products, interest-bearing accounts, or debt-based financial systems. The protocol functions as privacy infrastructure rather than a financial services platform.
At the protocol level NIGHT is completely free from Riba. Transaction fees, governance participation, and network utility through DUST — all functional uses tied to genuine privacy infrastructure operations rather than interest-based financial arrangements.
The score of 24 out of 25 on Financial Exposure Risk reflects this clean privacy infrastructure with a small deduction for indirect ecosystem considerations as the network develops and hosts more diverse applications.
Midnight has a clearly defined purpose focused on privacy infrastructure, cryptographic security, digital identity, and decentralized applications. IOG's track record with Cardano reduces the technical uncertainty that affects newer projects from unknown teams.
The Gharar score of 12 out of 15 reflects this strong foundation with deductions for the network's relatively early stage compared to more mature blockchain deployments and some regulatory uncertainty around privacy technology in different jurisdictions.
Midnight's core ecosystem is not centered around gambling platforms, betting markets, leveraged trading, derivatives products, or speculative financial engineering. Value is created through privacy technology and secure digital infrastructure.
The Maysir score of 11 out of 15 reflects this clean productive purpose with acknowledgment of speculative market trading in NIGHT tokens as with all crypto assets.
Midnight 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. Privacy infrastructure has 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. Midnight is fully eligible for HCS scoring.
Midnight is scored across 7 Shariah principles with a total of 100 points.
On Financial Exposure Risk, weighted at 25%, Midnight scores 24 out of 25. Clean privacy infrastructure with minimal direct exposure to interest-based products. Small deduction for future ecosystem development that may include DeFi applications requiring separate evaluation.
On Gharar and Uncertainty, weighted at 15%, Midnight scores 12 out of 15. Clear purpose and IOG technical credibility. Deductions for ecosystem maturity as a newer network and regulatory uncertainty around privacy technology across jurisdictions.
On Maysir and Speculation, weighted at 15%, Midnight scores 11 out of 15. No gambling mechanics in the privacy infrastructure. Deductions for speculative market trading in NIGHT tokens.
On Underlying Business Activity, weighted at 15%, Midnight scores a perfect 15 out of 15. Privacy-preserving blockchain infrastructure for digital identity, confidential computation, enterprise privacy, and decentralized applications is fully permissible and represents genuinely valuable productive economic activity.
On Utility and Real Use, weighted at 10%, Midnight scores a perfect 10 out of 10. Genuine and growing real-world need for programmable privacy infrastructure across enterprise applications, healthcare, finance, and digital identity systems.
On Tokenomics Fairness, weighted at 10%, Midnight scores 8 out of 10. Token distribution and dual-token architecture are reasonable. IOG's history with Cardano's distribution provides some governance credibility, though initial allocation concerns are standard for new projects.
On Transparency and Governance, weighted at 10%, Midnight scores 8 out of 10. IOG's research-driven approach and academic transparency contribute positively. Network governance is still developing as the ecosystem matures.
Overall HCS Score: 88 out of 100 — Halal
Muslim investors have now seen multiple privacy-focused blockchain projects in our series.
Monero scored 88 — classified as Halal. Privacy coin with default privacy for all transactions, proof-of-work mining model.
Zcash scored 84 — classified as Halal. Optional privacy with shielded transactions, developed by strong cryptographic research team.
Midnight scores 88 — classified as Halal. Programmable privacy through zero-knowledge proofs for smart contracts and applications, built by IOG.
All three are Halal. The key difference is the approach to privacy. Monero focuses on private payments. Zcash focuses on private transactions with optional shielding. Midnight focuses on programmable privacy for applications — the ability to build any application with customizable privacy properties.
Midnight's approach is more general and potentially more powerful — but also more complex and earlier in its development compared to Monero's decade of operational history.
This deserves specific acknowledgment because it affects the Gharar score more than most other factors.
Privacy-focused blockchain technology faces genuine regulatory uncertainty. Some jurisdictions have restricted privacy coins. Regulators in multiple countries have expressed concern about blockchain technologies that make transaction monitoring more difficult.
Midnight's design explicitly addresses this by enabling selective disclosure — the ability to reveal information to authorized parties like regulators when required. This regulatory compatibility design is a deliberate feature that distinguishes Midnight from pure privacy coins that offer no mechanism for lawful disclosure.
This design choice reflects real sophistication about the regulatory environment and is likely to make Midnight more viable for enterprise adoption. But the regulatory landscape for privacy technology is still evolving — and that uncertainty is honestly reflected in the Gharar score.
Before investing in Midnight, ask yourself honestly:
Do I understand what zero-knowledge proofs do and why programmable privacy for blockchain applications creates genuine long-term value? Am I investing based on conviction in the privacy infrastructure thesis and IOG's execution track record — or following Cardano ecosystem momentum? Do I understand that Midnight is earlier-stage than Cardano and carries more ecosystem adoption uncertainty? Am I comfortable with the regulatory uncertainty around privacy technology across different jurisdictions? Is my investment strategy focused on long-term infrastructure value rather than short-term price movements?
Midnight rewards investors who understand the genuine technical innovation in programmable privacy and have realistic expectations about enterprise infrastructure adoption timelines.
Midnight (NIGHT) is generally considered halal under the CoinStudy Halal Crypto Standard with a score of 88 out of 100.
It serves a legitimate and technically sophisticated purpose — providing programmable privacy infrastructure through zero-knowledge cryptography for digital identity, enterprise applications, and privacy-preserving decentralized services. It operates without built-in interest mechanisms. It provides real utility through privacy technology that addresses genuine and growing market needs — earning perfect scores on both Underlying Business Activity and Utility and Real Use.
The concerns — ecosystem maturity, regulatory uncertainty, and tokenomics concentration — 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 privacy-focused blockchain infrastructure with rigorous technical foundations, IOG's proven research credibility, and strong Sharia compliance fundamentals — Midnight is one of the most technically serious and mission-aligned halal options in the current market.
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
