Blockchain Innovation for Transparency in Zakat Distribution: Impact on the Trust and Loyalty of Muzakki on Indonesian Digital Zakat Platforms

Abstract

Purpose

This research aims to testify to the extension of blockchain innovation that contributes to enhancing transparency in the zakah distribution process and how advancements impact the trust and behavioral loyalty of muzaki that engage to the digital zakah platform in Indonesia. The study researches the mechanisms of blockchain features to improve accountability and donor attitudes in a technology that enabled Islamic philanthropy environment.

Methodology

A quantitative research utilized PLS-SEM to testify the relationships between its constructs. The data set comprises respondents from 300 active users of blockchain that are based on zakah applications, like BAZNAS Digital and also Kitabisa Zakat. The methodology approach uses rigorous examination of how blockchain that drives transparency influences donor behavior and trust of institutions.

Findings

The results find that blockchain innovation significantly improves transparency and positively impacts donor trust. Transparency is a mediating factor linking blockchain technology to muzaki loyalty. Special blockchain attributes like smart contracts and immutable transaction records are found to enhance the perceived fairness and trustworthiness of zakat institutions, thus fostering sustained donor commitment.

Limitations

The scope of the research is confined to digital zakat platforms that operate in Indonesia and does not supplement conventional zakah institutions. Next research could be from cross-regional comparisons or by integrating psychological and behavioral variables to extend the model for application.

Practical Implications

The research offers empirical views for zakah managers and policy makers by stressing the strategic value of blockchain adoption to enhance transparency, credibility of institutional, and donor satisfaction. Integrating blockchain to the zakah governance conceptual framework could serve as catalysts to building stronger, and more accountable to digital philanthropy systems.

Social Implications

Blockchain implementation in zakat distribution not only improves transparency but also increases public trust in Islamic philanthropic organizations. This could broaden community participation and contribute to the principles of Islamic social justice (maqāṣhid sharīah) through equitable and resource distribution.

Originality/Value

This research is one of empirical studies in Indonesia to explore the interconnected impact of blockchain innovation, transparency, trust, and loyalty in digital zakah structures. The study shows a foundational model to design trustworthy, sharia compliant, and technology that is integrated with zakah platforms in Islamic finance.