Addressing Challenges in Halal Certification Using Blockchain Technology

Recently, there have been increased studies on the use of blockchain technology in many sectors but require further development in the Islamic sector. Discussion on how blockchain technology can fit in to improve the Islamic-based process, mainly for the Halal industry, needs to be extended. This chapter aims to address challenges in Halal certification using blockchain technology. Through the religious institutional theory of Shariah compliance, this chapter provides a framework for addressing challenges in Halal certification using blockchain technology. This chapter presents four challenges in Halal certification with blockchain solutions for each. Challenges in Halal certification include unrecognised and centralised Halal certification, information about Halal products, non-compliance, as well as trust and authenticity. Meanwhile, theoretical contributions include two developments: a literature review in the context of Halal certification and the use of religious institutional theory. Practical contributions include the best practices for improving processes using blockchain technology in Halal certification and understanding how to use the blockchain technology advantage to improve the Halal certification process. This chapter can be extended to empirical evidence and uses the combination of religious institutional theory and information system theory.