Smart Contract and IPFS Decentralized Storage for Halal Certification Process

Anak Agung Gde Agung - Telkom University, Jl. Telekomunikasi No.1, Bandung, 40257, Indonesia
Irna Yuniar - Telkom University, Jl. Telekomunikasi No.1, Bandung, 40257, Indonesia
Robbi Hendriyanto - Telkom University, Jl. Telekomunikasi No.1, Bandung, 40257, Indonesia

Citation Format:



The halal industry today has achieved rapid development. Halal product is mandatory for Muslims and a big business for Indonesia. For others, it affirms the product's quality assurance and becomes a trending lifestyle. The product owner must submit an application and undergo several processes to obtain a halal certificate. However, there are challenges in the certification process and documentation. The proposed system automates the flow between certification processes through digital signing and stores the certificate and fatwa file. The study investigates the utilization of blockchain to manage the process and the integration of decentralized storage (IPFS) to store the digital version of the fatwa and certificate. A smart contract is designed and deployed on the Ethereum blockchain, and the transaction time and cost are analyzed. A smart contract enforces that certain actions are executed once the required conditions are fulfilled. The proposed system would cost 24.6 USD and require 227 seconds on average for the system setup. Each submission requires 9.86 USD and takes 92 seconds on average. Verification is free, and the average result can be obtained in one second. The appointed officer sets each entity to interact with the contract, and the digital documents (fatwa and certificate) are available online using IPFS. Progress of the certification is transparent to the public, increasing the public's trust. The study demonstrates a smart contract's capability to manage a product's certification process.


Halal product; certification process; smart contract; IPFS

Full Text:



J. Lever, J. S. Vandeventer, and M. Miele, “The ontological politics of kosher food: Between strict orthodoxy and global markets,” Environ. Plan. A, vol. 55, no. 2, pp. 255–273, 2023, doi: 10.1177/0308518X221127025.

A. Rachman and A. J. Khokhar, “Role of Indonesian Council of Ulama in Halāl Certification and Product Guarantee,” J. Islam. Thought Civiliz., vol. 13, no. 1, 2023, doi: 10.32350/jitc.131.14.

S. A. Ali Shah, B. A. Fianto, A. R. Sridadi, and U. N. Kayani, “A Master Conceptual Framework of Research in Halal Tourism,” Tourism, vol. 71, no. 1, 2023, doi: 10.37741/T.71.1.8.

J. Akbar et al., “Global Trends in Halal Food Standards: A Review,” Foods, vol. 12, no. 23, pp. 1–15, 2023, doi: 10.3390/foods12234200.

Presiden Republik Indonesia, Law No. 33 (2014), Halal Product Assurance. 2014.

C. Purwowidhu, “Kodifikasi dan Sertifikasi Produk Halal Jadi Langkah Indonesia Tingkatkan Industri Halal,” Ministry of Finance of the Republic of Indonesia.

M. Sakti, Pujiono, and M. N. Imanullah, “Legal studies on the halal product certification institution in Indonesia after the enactment of the law on the halal product guarantee,” in Proceedings of The 1st International Conference on Halal, Malang, Indonesia, 2020.

Mohammad Yusuf, Dewi Mahrani Rangkuty, Robi Krisna, and Mochammad Erwin Raditio, “Economic analysis of halal certification by the Halal Product Assurance Administration Agency,” World J. Adv. Res. Rev., vol. 13, no. 1, 2022, doi: 10.30574/wjarr.2022.13.1.0077.

Smesco Indonesia, “Label Halal Bikin Produk UMKM Makin di Kenal.”

Ö. Aslan, S. S. Aktuğ, M. Ozkan-Okay, A. A. Yilmaz, and E. Akin, “A Comprehensive Review of Cyber Security Vulnerabilities, Threats, Attacks, and Solutions,” Electronics (Switzerland), vol. 12, no. 6. 2023. doi: 10.3390/electronics12061333.

O. A. Al-Mahmood and A. M. Fraser, “Perceived challenges in implementing halal standards by halal certifying bodies in the United States,” PLoS One, vol. 18, no. 8 August, 2023, doi: 10.1371/journal.pone.0290774.

S. Hanafi and M. S. Nurdin, “Halal Certification in Used Goods Products in the Perspective of Islamic Law,” Ulul Albab J. Stud. dan Penelit. Huk. Islam, vol. 5, no. 1, 2022, doi: 10.30659/jua.v5i1.16051.

J. Frizzo-Barker, P. A. Chow-White, P. R. Adams, J. M. D. Ha, and S. Green, “Blockchain as a disruptive technology for business: A systematic review,” Int. J. Inf. Manage., vol. 51, no. April, Apr. 2020.

G. Chen, B. Xu, M. Lu, and N.-S. Chen, “Exploring blockchain technology and its potential applications for education,” Smart Learn. Environ., vol. 5, 2018.

D. Čeke and S. Kunosić, “Smart Contracts as a diploma anti-forgery system in higher education - a pilot project,” in 43rd International Convention on Information, Communication and Electronic Technology (MIPRO), Opatija, Croatia, 2020.

T. Arndt and A. Guercio, “Blockchain-Based Transcripts for Mobile Higher-Education,” Int. J. Inf. Educ. Technol., vol. 10, no. 2, 2020.

H. T. Le et al., “Medical-Waste Chain: A Medical Waste Collection, Classification and Treatment Management by Blockchain Technology,” Computers, vol. 11, no. 7, 2022.

M. Uddin, K. Salah, R. Jayaraman, S. Pesic, and S. Ellahham, “Blockchain for drug traceability: Architectures and open challenges,” Health Informatics J., vol. 27, no. 2, 2021.

S. Ni, X. Bai, Y. Liang, Z. Pang, and L. Li, “Blockchain-based traceability system for supply chain: potentials, gaps, applicability and adoption game,” Enterp. Inf. Syst., 2022.

M. H. Ali, L. Chung, A. Kumar, S. Zailani, and K. H. Tan, “A sustainable Blockchain framework for the halal food supply chain: Lessons from Malaysia,” Technol. Forecast. Soc. Change, vol. 170, 2021, doi: 10.1016/j.techfore.2021.120870.

J.-J. Hew, L.-W. Wong, G. W.-H. Tan, K.-B. Ooi, and B. Lin, “The blockchain-based Halal traceability systems: a hype or reality?,” Supply Chain Manag. An Int. J., vol. 25, no. 6, pp. 863–879, 2020.

A. Tan, D. Gligor, and A. Ngah, “Applying Blockchain for Halal food traceability,” Int. J. Logist. Res. Appl., vol. 25, no. 6, 2020.

A. A. G. Agung, H. Nugroho, and R. Hendriyanto, “A Blockchain-based Halal Certificate Recording and Verification Prototype,” JOIV Int. J. Informatics Vis., vol. 6, no. 2, 2022.

N. Katuk, “The application of blockchain for halal product assurance: a systematic review of the current developments and future directions,” Int. J. Adv. Trends Comput. Sci. Eng., vol. 8, no. 5, pp. 1893–1902, 2019, doi: 10.30534/ijatcse/2019/13852019.

R. Yanti, M. A. Febrianti, Qurtubi, and J. Sulistio, “Halal blockchain: Bibliometric analysis for mapping research,” Asian J. Islam. Manag., vol. 4, no. 1, pp. 72–85, 2022, doi: 10.20885/ajim.vol4.iss1.art6.

T. N. R, M. I. A, and Y. Anggoro, “Blockchain Technology Adoption, Benefit and Challenges for Halal Food Traceability,” Proc. Int. Conf. Soc. Econ. Business, Educ. (ICSEBE 2021), vol. 205, no. Icsebe 2021, pp. 1–4, 2022, doi: 10.2991/aebmr.k.220107.001.

G. R. Chandra, I. A. Liaqat, and B. Sharma, “Blockchain Redefining: The Halal Food Sector,” in Amity International Conference on Artificial Intelligence (AICAI), Dubai, 2019.

N. Zainal Abidin and F. F. Putera Perdana, “A Proposed Conceptual Framework for Blockchain Technology in Halal Food Product Verification,” J. Halal Ind. Serv., vol. 3, pp. 1–8, 2020, doi: 10.36877/jhis.a0000079.

D. Novianti, Y. Arkeman, M. N. Almunawar, L. Haditjaroko, and A. Ismayana, “Designing a Transparent Distributed Systems for Halal Supply Chains Using Blockchain Technology,” J. Bus. Econ. Anal., vol. 03, no. 02, pp. 151–170, 2020, doi: 10.36924/sbe.2020.3204.

I. Surjandari, H. Yusuf, E. Laoh, and R. Maulida, “Designing a Permissioned Blockchain Network for the Halal Industry using Hyperledger Fabric with multiple channels and the raft consensus mechanism,” J. Big Data, vol. 8, no. 1, 2021, doi: 10.1186/s40537-020-00405-7.

K. Zulihuma and A. S. Bin Shibghatullah, “Blockchain Technology for Halal Supply Chain Management,” Proc. Int. Conf. Artif. Life Robot., pp. 213–218, 2022, doi: 10.5954/icarob.2022.gs4-1.

E. Sumarliah, T. Li, B. Wang, F. Fauziyah, and I. Indriya, “Blockchain-empowered halal fashion traceability system in Indonesia,” Int. J. Inf. Syst. Supply Chain Manag., vol. 15, no. 2, 2022, doi: 10.4018/IJISSCM.287628.

S. Alam, M. Jamil, and A. Syamsir, “Digital Currency in Indonesia (Prospects and Challenges in Inclusive Financial Reviews),” J. Ad’ministrare, vol. 9, no. 2, 2022, doi: 10.26858/ja.v9i2.39498.

E. Duffield and D. Diaz, “Dash: A Payment-Focused Cryptocurrency.” 2014.

A. A. G. Agung, R. G. Dillak, D. R. Suchendra, and R. Hendriyanto, “Proof of Work: Energy Inefficiency and Profitability,” J. Theor. Appl. Inf. Technol., vol. 97, no. 5, pp. 1623–1633, 2019.

Z. Zheng et al., “An overview on smart contracts: Challenges, advances and platforms,” Futur. Gener. Comput. Syst., vol. 105, 2020, doi: 10.1016/j.future.2019.12.019.

W. Cai, Z. Wang, J. B. Ernst, Z. Hong, C. Feng, and V. C. M. Leung, “Decentralized Applications: The Blockchain-Empowered Software System,” IEEE Access, vol. 6, 2018, doi: 10.1109/ACCESS.2018.2870644.

J. C. Ú. Ortega, J. Rodríguez-Molina, M. Martínez-Núñez, and J. Garbajosa, “A Proposal for Decentralized and Secured Data Collection from Unmanned Aerial Vehicles in Livestock Monitoring with Blockchain and IPFS,” Appl. Sci., vol. 13, no. 1, 2023, doi: 10.3390/app13010471.

N. Sari, “Government Capacity to Guarantee Halal Product from Micro, Small, And Medium Enterprises in Kebumen,” Varia Justicia, vol. 19, no. 1, 2023, doi: 10.31603/variajusticia.v19i1.8911.

M. F. M. Mohammad, “The Pengaturan Sertifikasi Jaminan Produk Halal Di Indonesia,” KERTHA WICAKSANA, vol. 15, no. 2, 2021, doi: 10.22225/kw.15.2.2021.149-157.

Yana, “Mengejar Target 10 Juta Sertifikasi Halal 2024,” Halalmui.Org, no. 162, p. 1, 2023.