The Potential Application of Blockchain Technology in Zakat Management in Indonesia

Abstract

This research aims to examine the potential application of Blockchain technology in the management of zakat in Indonesia as a solution to various issues such as lack of transparency, accountability, and efficiency in the distribution of zakat. The method used in this study is literature review by examining literature, scientific articles, and previous research related to zakat and Blockchain. The results indicate that zakat plays an important role in the Islamic financial system and is believed to be able to improve the living standards of society in Indonesia. This research seeks to explore how the utilization of technology, particularly digital platforms and Blockchain technology, can be used to manage zakat more optimally. Meanwhile, Blockchain technology offers advantages in terms of transparency and accountability, as every transaction can be tracked in real-time and is difficult to manipulate. This can certainly prevent the misappropriation of funds. Additionally, The data generated from this digital system can also be used to analyze the needs of beneficiaries, so that the distribution of zakat can be more targeted. If implemented correctly, the integration of technology in the zakat system has great potential to strengthen transparency, improve efficiency, and provide a positive impact on the welfare of society at large.