Covalent
Crypto Overview
Purpose and Utility
Covalent is a blockchain data infrastructure project that provides a unified API to access data from multiple blockchain networks. The CQT token is used for network governance and as a utility token to access the protocol's services.
Business Model
The project operates as a data infrastructure provider, offering developers and enterprises access to blockchain data through their API endpoints. Users pay for API access using CQT tokens. This business model is transparent and doesn't involve any impermissible activities like interest-bearing products or gambling.
Real-World Adoption
Covalent has established partnerships with multiple blockchain networks and serves numerous projects in the Web3 space. The protocol processes billions of API calls monthly, demonstrating actual utility and adoption. They support over 90 blockchain networks including Ethereum, Polygon, and Avalanche.
Platform Development
The project maintains active development with regular updates to their infrastructure and API capabilities. Their GitHub repositories show consistent activity, and they regularly release new features and network integrations.
Token Distribution and Governance
The CQT token distribution includes allocations for the team and early investors with standard vesting periods. The token is primarily used for governance voting and accessing API services, representing actual utility rather than pure speculation.
Revenue Model
The protocol generates revenue through API access fees paid in CQT tokens, which is a straightforward and permissible business model under Islamic principles. There are no interest-bearing mechanisms or gambling elements in the core protocol.
Crypto Impact
To assign a comfort level investing in Covalent from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Covalent.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.