Abstract
Waqf (Islamic endowment) represents a vital socio-economic institution within Islamic social finance, historically dedicated to poverty alleviation, public infrastructure development, and community welfare. However, traditional waqf administration often suffers from severe challenges, including transparency deficits, high administrative overhead, and a lack of public trust in Nazir (trustee) management. Recently, blockchain-based smart contracts have emerged as a disruptive technological solution capable of automating waqf administration and ensuring immutable ledger records. This study conducts a comparative case study of digital waqf platforms in Indonesia and Malaysia, analyzing their architectural designs, governance models, and Shariah compliance frameworks. By examining how smart contracts mitigate agency problems, reduce operational friction, and enhance donor trust, we evaluate the distinct regulatory pathways adopted by both nations. Our comparative analysis reveals that while Indonesia's decentralized regulatory environment fosters rapid fintech innovation and agile platform deployment, Malaysia's centralized, state-level administration provides superior regulatory stability and institutional trust. However, both jurisdictions face critical challenges in integrating real-world asset registration with on-chain smart contracts. To address these limitations, we propose a unified Hybrid Shariah-Compliant Smart Contract (HSCSC) framework designed to bridge digital ledgers with physical legal registries, offering valuable policy and operational insights for the global Islamic fintech ecosystem.
