hi @quidagis , thanks for your questions.
In answer to those.
Qirad is the arabic term for this financing model. It was used in other places as well, such as Italy in the 15th century where it was one of the greatest contributors to the prosperity of Florence at the time. I’m not sure what the Italian for Qirad is I am afraid.
Smart Contracts are super conducive and super suitable to the concept of the Qirad. The reason is the trust model. In other financing modes, the ‘security’ is either equity or collateral, but in Qirad it is the reputation of the person raising finance as well as their guarantors (known as Hawalla’s) who have to sign off on each contract and vouch that they guarantee for this person. The whole trust model in Smart Contracts and specifically DAML is super conducive to this and Qirad is a perfect application to take advantage of this platform.
I may end up (once I get my head around all the concepts and master DAML better) becoming the first person in the world to create an entire Guild system on the blockchain as a result of this. Guilds are groups of people that all agree to vouch for each other and operate as a single unit so that if an investor pours money into a business and the individual runs off, the guild is responsible for repaying the investor. In this way, the guild replaces the need for collateral or equity.
Qirad is known as Mudarabah by Hanafi scholars, but in the Hanafi school of thought there are some slight differences. I am using the more puritan definition of it.
If you like, I can link the key slides from my presentation that provide more background context and info.